Staff Insights

How Ya Doin’ Since Ya Left Me?

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.

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What is NatGold?2024-05-03T15:18:49+00:00

NatGold, sometimes referred to as “green gold,” represents the concept of monetizing natural gold—gold that is left unextracted and remains in the ground. The distinctiveness of NatGold lies in the method of capturing its value, making it a superior choice for monetary purposes compared to its above-ground counterpart, which serves better for industrial, jewelry, and luxury uses.

The value of NatGold is realized through the tokenization of NI 43-101 certified gold resources, which are fundamental to all investment decisions related to gold mine financing for extraction purposes. By being digitally mined and kept in its natural state, NatGold provides a plentiful supply to meet flexible monetary demands without the need for the security, storage, transportation, and insurance required for physical gold.

Moreover, NatGold is ESG-friendly (Environmental, Social, and Governance), positioning NatGold as a positive force for sustainable finance, in stark contrast to the significant environmental and social impacts associated with above-ground gold extraction and processing.

What is the International NatGold Council?2024-04-20T23:26:47+00:00

The International NatGold Council, initially known as the International Green Gold Council, was founded in December 2023 in Geneva, Switzerland, by New York-based OroEx Corp. as a Swiss commercial foundation.

Structured as an independent governing body, the Council functions separately from industry participants, including its founding entity, OroEx Corp. Its Board of Directors consists of an exceptionally experienced and diverse team of individuals with international expertise.

Are NI 43-101 Technical Reports considered the “gold standard” among international financial community?2024-04-20T23:32:21+00:00

Yes, NI 43-101 Technical Reports are often considered the “gold standard” within the international financial community for mineral project reporting. This reputation stems from their rigorous standards for transparency, accuracy, and detail in reporting mineral resources and reserves. Developed under the guidelines set by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), these reports require comprehensive disclosure and are overseen by qualified professionals who must adhere to strict ethical and professional standards.

The NI 43-101 Technical Report is the preferred choice for mining financiers worldwide when assessing potential funding for mining operations. As a result, NI 43-101 reports are uniquely recognized and accepted by all major global stock exchanges, further solidifying their status as the most widely trusted and authoritative source for certifying gold resources.

The higher degree of certainty and reliability associated with NI 43-101 reports, as compared to other international standards, ensures that investors, financiers, and other stakeholders have the most dependable information at their disposal when evaluating the potential of gold mining projects. This level of trust has established the NI 43-101 reports as the benchmark for gold resource reporting, thereby justifying their recognition as the “gold standard” in the industry and the only standard acceptable for tokenization into NatGold coins.

Why is the elimination of fees and royalties crucial in NatGold legislation?2024-05-03T15:33:15+00:00

To ensure the NatGold industry’s integrity and sustainability, it’s critical to eliminate ongoing state fees and royalties tied to traditional mining titles. Such ongoing annual costs, if applied, necessitate the issuance of new NatGold coins to cover them, risking the one-to-one correspondence between NatGold coins and certified gold resources. This could potentially dilute NatGold coins’ monetary integrity by introducing the possibility of devaluation within the ecosystem. Therefore, abolishing these fees and royalties is paramount to preserving NatGold coins as a reliable and devaluation-resistant store of value, safeguarding against the depreciation that could arise from ongoing state-imposed costs.

What does ESG stand for?2024-04-21T15:19:38+00:00

ESG stands for Environmental, Social, and Governance. These three broad categories are used to evaluate the sustainability and ethical impact of an investment in a company or business. Here’s what each component generally focuses on:

Environmental criteria consider how a company performs as a steward of nature. This includes its energy use, waste, pollution, natural resource conservation, and treatment of animals. The criteria can also help evaluate any environmental risks a company might face and how the company is managing those risks.

Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. This can include labor practices, employee health and safety, and the company’s impact on the communities where it operates.

Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. This aspect looks into how a company is governed, particularly in terms of transparency, accountability, and business ethics.

These factors are increasingly important to investors, as they can affect a company’s profitability, risk profile, and overall sustainability.