The Gold Jewelry Standard — A Continuous System from Ancient Times to Present Day

GoldIsCurrencyGoldIsCurrency Posts: 1,794 Gold ✭✭✭✭✭
edited July 2017 in About Gold
Roy Sebag wrote this back in January. I think for XAU investors it is a great article to re-read in full to see how Menē as a wearable store of value fits in line to what Goldmoney represents. A savings in gold ethos. Personally I am excited to see how Menē can potentially disrupt a whole different gold industry by bringing the East's way of selling gold jewelry to the West. This makes Menē much more than just a brand as it will represent fair & honest value simply by the way it is priced. It could in affect, change the mentality where a jewelry buyer in the West may eventually start to ask the right questions.

https://medium.com/@roysebag/the-gold-jewelry-standard-a-continuous-system-from-ancient-times-to-present-day-57e16fb63522

Jewelry Buyer in the East — “What is the weight and purity? What is the Gold Price today?”

Jewelry Buyer in the West — “What is the retail price?”


(1) Admittedly, even I did not recognize this to be false at first. I viewed jewelry as a segment of gold that was not the fulcrum but instead an edge case fashion. True gold ownership, I felt, was manifest through the bullion markets, where monetary gold was acquired and sold every day to the tune of billions of dollars. It was only on the trip to Asia and through reflection on global gold flows that I realized this view was flawed. The low margins over pure gold value in the East on jewelry meant that it wasn’t jewelry that was being acquired, but gold. When re-analyzing the flows, it became obvious to me that most gold mining flows into the jewelry market. Combining these two heuristics: Gold demanded as savings in the form of jewelry is the ultimate causality, the fulcrum anchor for bullion markets and mining. The physics of gold keep it functioning as an efficient measurement of monetary inflation practiced through the lens of modern economics, but only the jewelry market has served as a de facto gold standard since ancient times.

Comments

  • GoldmattersGoldmatters Posts: 3,993 Admin
    Thanks for posting:)
  • paddy10tellyspaddy10tellys Posts: 249 Bronze ✭✭✭
    Thx. Informative. Interesting perspective. Certainly clarifies the GM brand. I get it now having not appreciated the recent company activity so much
  • TimKTimK Posts: 90 Bronze ✭✭✭
    I have recently started buying gold jewelry as a store of value. I have bought some gold bracelets and stored them as I would physical gold. I had to educate myself as to the purity and what different carrots represented.
    It's a segment of the gold industry that I always ignored until recently.

    I say why not? It's gold. Has gold content. Nobody really questions somebody wearing a nice gold necklace through an airport but they would question why your traveling with gold bullion coins. It's just another form of buying gold that people like me never considered. I'm from the U.S.

    I never have worn it. It's never been opened except to inspect it once. It will remain part of my savings platform in gold. I think everybody should look into this. I assume everybody on here believes in gold as the only form of real money. So why not?
  • GMONEY1GMONEY1 Posts: 426 Silver ✭✭✭✭
    Great points @TimK .
    My first piece will be from Mene once they're operational.
  • Marco_1983Marco_1983 Posts: 152 Bronze ✭✭✭
    @Roy Sebag

    Don't know if it already exists or if you already thought about it, but I think some sort of "Pandora" type, 22K / 24K gold bracelet/neckless would be a good idea. It would be a piece of jewelry that you can wear, but with excellent divisibility and liquidity properties. Perfect for bartering and/or relatively small payments. Pandora: 10% Metal 90% Design. Goldmoney "Planet": 10% Design, 90% Metal. ;)

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