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Comment: Strange, but gold was not
Strange, but gold was not
Strange, but gold was not subject to market swings during the 1800s, in fact, the greatest "swing" was no more than a few Cents either way, that stability lasted from 1800 all the way through 1920. The fact is that if you are looking at the commodity markets today and because of the volatility of those markets assume that gold when allowed to function as money will be subject to the type of swings we see under a fiat monetary system then perhaps you don't quite understand the differences the two types of money will make in the markets themselves.
I am not sure how to explain just what happens when a market is subject to actual money instead of a fiat paper money substitute, we assume that the market acts the same no matter if the money used is gold or fiat paper money, but the fact is they don't and you can determine patterns of market behavior by comparing historic markets under a sound money system and markets subjected to a fiat monetary system what is inherently unstable, therefore a great deal of volatility is to be expected.
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