Since President Richard Nixon announced the suspension of the dollar’s convertibility into gold on August 15, 1971, a monumental shift has occurred in the global financial system. This moment marked the beginning of the fiat currency era for the United States—a system under which the value of the dollar is no longer backed by gold but rather by the “full faith and credit” of the U.S. government.

The repercussions of this shift have been profound. Free from the natural braking mechanism applied by gold, central bankers have had a free hand, leading to the unbridled printing of torrents of money.

The Era of Fiat Currency

Essentially, every new dollar printed or created reduces the purchasing power of all dollars previously in circulation. This is because the relative scarcity of money decreases with each additional unit, leading to inflationary pressures where more money chases the same amount of goods and services. Consequently, the purchasing power of money erodes.

In 1971, the U.S. federal debt was a mere $398 billion. Fast forward, and it’s a staggering $34.5 trillion, ballooning at a breakneck pace of $1 trillion every 100 days. Following Nixon’s radical departure from gold, the dollar’s purchasing power has nosedived by an astonishing 98%, rendering it virtually mythical in its capacity to serve as a reliable medium of exchange. In essence, the dollar’s role as a steadfast and trustworthy store of wealth has been utterly decimated.

The continuous and unchecked creation of money since leaving the gold standard has not only led to a significant decline in the purchasing power of the US dollar; it has led to a decrease in general living standards, particularly for savers and those on fixed incomes, as their money buys less with each passing year.

Seeking Alternatives in a Post-Gold World

The detachment from gold eliminated a natural constraint on money creation, facilitating the financing of substantial budget deficits and escalating national debt, with increasingly detrimental effects on purchasing power. Today, the long-term repercussions of reckless debt expansion are starkly evident, as the value of savings erodes and the cost of living rises at an unprecedented rate.

It’s no surprise to us that much of the discontent has channeled itself into Bitcoin – despite its lack of intrinsic value, equal to the US dollar in that sense. However, the desire for change, for a viable alternative has fueled much of the public’s faith in its purported monetary value. Unfortunately, Bitcoin lacks the one fundamental ingredient that any truly reliable store of value must have – intrinsic value. It has none, making it a nice exchange mechanism but not suitable as a reliable and stable form of money. On top of that it is completely supply inelastic, which is one of the main causes gold was relegated to the dustbin of monetary history.

At the International NatGold Council, we have reached a critical realization: the era where physical gold underpins monetary systems may indeed be over. The aspiration for gold to reclaim its vital role in the economy, grounded in its intrinsic value, has been overshadowed by political and financial systems that favor a debt-based, fiat currency regime. The inherent inelasticity of gold’s supply—its inability to quickly respond to economic shifts and the escalating demand for currency—has been a pivotal factor in this transformation. Moreover, the rise of environmental, social, and governance (ESG) consciousness over recent decades has reshaped industries across the globe, imposing new challenges on traditional gold mining practices.

The NatGold™ Solution: A New Horizon

The surge in ESG principles has significantly affected the gold mining industry, making the acquisition of new mining permits as challenging as ever. For instance, in Panama, anti-mining protests sparked considerable turmoil, prompting the government, under President Laurentino Cortizo, to issue a national moratorium on new metal mining projects, a decision fueled by weeks of civil unrest.

This intensification of ESG activism and its consequent impact on mining operations indicate that the vision of a gold-backed currency system is becoming increasingly elusive. With these challenges in mind, the potential for expanding the above-ground gold supply—solely reliant on mining—seems impractical for supporting monetary frameworks in the future.

However, we believe there is a logical, viable and promising alternative: NatGold. We are thrilled to unveil this innovative concept, which redefines the utilization of gold’s enduring value. NatGold introduces an avant-garde model, transforming how gold can sustainably underpin economic structures without the environmental and social ramifications associated with traditional mining.

NatGold emerges as a beacon of hope, proposing a harmonious balance between valuing our natural resources and advancing our financial systems. This digital mining approach—capitalizing on the certified existence of gold, yet leaving it untouched within the earth—embodies a truly sustainable practice. Unlike physically extracted gold, whose availability is confined to diminishing and increasingly inaccessible locations, NatGold’s digital mining process, theoretically, allows for the utilization of all the world’s gold resources.

In conclusion, the decision to abandon gold backing has led to an era of financial uncertainty, marked by significant fluctuations in inflation, interest rates, and the dollar’s value on the global stage. As we advocate for NatGold, we are not just proposing a new asset; we are inviting a global dialogue on the future of monetary integrity and stability. NatGold stands at the forefront of this conversation, promising a monetary solution that aligns with today’s ESG values without compromising the timeless worth of gold.

Looking back over the half-century since that defining moment, the pressing question remains: “How ya doin’ since ya left me?” Unfortunately, the response is disheartening. The purchasing power of the dollar—and with it, the economic stability of many, all around the globe, not just Americans—has been significantly diminished.It’s time to kiss and make up. It’s time for a digital resurrection of gold’s intrinsic monetary value.