To slightly amend a quote from the classic film Fight Club, “On a long enough timeline, the survival rate of every fiat currency is zero.” The deteriorating economic situation in Venezuela has added the country’s currency, the bolivar, to this ever-growing list.
Late last year, Indian Prime Minister Modi surprised everyone by swiftly demonetizing the country’s 500- and 1,000-rupee notes, the two largest banknote denominations. This amounted to a staggering 85% of the country’s circulating cash. On top of that, it exacerbated the issue of pent-up gold demand due to the temporary shortage of currency.
During the Cold War, when the world was lurching ever-closer to the doorstep of a nuclear holocaust, disaster preparedness was an abiding virtue of every American family. Once the stand-off with the Soviet Union gave way to the 21st century, this high alert about potential war or crises later came to be applied to retirement […]
When you think about the gold market, it’s impossible to separate the idea of gold’s “spot price,” its prevailing value “on the spot” at any given moment, with the value of the U.S. dollar.
Even before its inception, skeptics have been predicting the downfall of the euro, the common currency of the member nations of the European Monetary Union. Many saw this project as doomed from the start. Nonetheless, the currency quickly became the biggest rival to the U.S. dollar in international markets. After nearly two decades on the […]
There’s been a deluge of coverage of Bitcoin lately, coinciding with the increasingly popular cryptocurrency’s dramatic rise (and fall) in price. It’s not just the all-time high values for Bitcoin that are garnering attention; it’s also the volatile swings in prices that invariably seem to follow. There’s a strong case to be made that Bitcoin […]
There’s that saying about how “a great deal of truth is said in jest.” It’s true that sometimes comedy can reveal some important point that has been overlooked or underappreciated. This is probably not the case with the joke that appeared on a 1995 episode of The Simpsons that, in the show’s typical ridiculous manner, suggested Australian […]
Especially since 2017 began, the fully digital cryptocurrency Bitcoin (BTC) has been squarely at the center of the financial news due to all of its wild price swings. (More on that below.)
Coin and currency collectors can be a quirky lot. It’s the nature of numismatics: sometimes the most interesting—and valuable!—rare collectibles are the product of some very small nuance or detail. For the collectors chasing the novel new polymer five-pound banknotes introduced in the U.K., this has undeniably been the case.
There is, in South America, a curious numismatic trend that challenges our assumptions of what is marketable and what is not. See, the one-dollar coin has historically been a hard sell in the United States. Its incarnations, like the Susan B. Anthony dollar or the Sacagawea dollar, spent very little time in circulation before the […]
People of a certain generation will sometimes choose to eschew a checking or savings account at a bank for their own “in-house” form of saving their money: stuffing cash in the couch. Although the rapid changes of the Digital Age have made electronic banking and even online or mobile banking more convenient for Millennials, many Baby […]
There’s a great deal of talk about “fake news” in the media these days, but we don’t as often hear about the growing pandemic of fake money. Rather than a concerted effort by determined ne’er-do-wells, this recent spate of incidents involving fake money is actually a case of Hollywood not taking better care of its props!
Over the last month, the Japanese yen has seen a sharp devaluation against the U.S. dollar. As we continue through the first week of December, Tokyo’s Nikkei 225 stock index has also taken a hit. Yes, this is largely due to the dollar being on a tear during the post-election “Trump Rally.” However, the eventual […]
In the West, the general public tends to trust the strength and integrity of our financial system with the unquestioned faith of, frankly, a cult. If this wasn’t the case, fiat currencies like the U.S. dollar would already have succumbed to their inevitable death. This faith holds despite the increasingly frequent financial crises and good […]
Perhaps even more so than its major counterparts in North America and the Asia-Pacific region, the European Union (EU) has been unable to escape from its years-long economic conundrum.
The next few months could be a bumpy ride for gold prices, according to analysts at Citigroup.
Some call it the “War on Cash.” Others, citing studies, suggest we are approaching “Peak Cash,” referencing the similar transformation that will accompany environmental constraints such as “Peak Oil.” No matter what you choose to call it, the world’s advanced economies are all hurtling toward a system of fully digitized money—perhaps coming as soon as […]
There has been a great deal of experimentation with physical money over the last decade, with government mints around the world attempting to stay a step ahead of would-be counterfeiters. The Bureau of Printing and Engraving in the U.S. updated its $100 note design a few years back, for instance, and more changes appear to […]
Throughout the modern era (roughly since gold and silver specie ceased to be used as circulating currency), coins and banknotes have been the fiat tokens we use to represent money. However, like the rest of our society, the financial system has undergone a rapid transformation in the Digital Age.
Ed D’Agostino of Hard Assets Alliance quickly sums up the state of geopolitics at the moment: “The U.S. election is rapidly approaching. Brexit looms large over the European economy. Rogue terrorists attack without warning and the migrant crisis continues to threaten Europe’s security. In the face of such volatility, it’s more important than ever to […]