For thousands of years, people have been searching for a reliable medium of exchange: Shells, rock salt, paper, digital entries. But in the end, one insight remains: Only gold and silver have proven themselves to be good money in the true sense of the word.
Why? Because they embody the characteristics that Mises, Menger, and Hayek described as prerequisites for any healthy monetary system: Scarcity, divisibility, durability, homogeneity, and acceptance.
1. Origin of money: A market product, not a state product
In his groundbreaking work “On the Origin of Money” (1871), Carl Menger showed that money is not created by an act of the state, but by market processes. In exchange, people choose those goods that can be resold most easily – the “most marketable” ones. Historically, precious metals prevailed because they possess all the desirable monetary characteristics. It was only later that the state came along to appropriate this established institution, to mint coins, to monopolize them, and ultimately to devalue them.
2. Scarcity and trust
Money must be scarce. Only then can it retain its purchasing power. While central banks can increase paper or digital money indefinitely, no one can produce gold or silver at will. This physical limitation imposes discipline – it prevents inflationary abuse by political actors. In a precious metal standard, no politician can finance “special expenditures” at the touch of a button. This explains why governments have always fought against gold money: It limits their power.
3. Value anchor and time preference
Gold and silver have a non-monetary, industrial value that exists independently of government decrees. Those who own them hold a real asset, not a promise from an indebted institution. In a world of fiat money created by credit, inflation encourages short-term thinking, consumption, and debt. Hard money, on the other hand, promotes thrift, capital formation, and long-term planning. It is therefore not only an economic phenomenon, but also a cultural one: Gold rewards virtues such as foresight, discipline, and responsibility.
4. Stability instead of manipulation
Since the gold standard was finally abolished in 1971, all world currencies have become political products. Their purchasing power depends on the whims of central bank councils. The result: Creeping expropriation through inflation, gigantic debt bubbles, financial cycles. Gold and silver, on the other hand, are immune to monetary arbitrariness. No one can increase their supply by decree. That is why they are the natural benchmark for stable gold and the only money that protects freedom.
5. Crisis-proof confidence
In all currency crises throughout history – from the Roman coin debasement to the German hyperinflation of 1923 to today’s devaluations of the lira, peso, and yen – people have fled to precious metals. They do so not out of nostalgia, but out of rational experience: Only gold and silver survive the breach of trust between citizens and the state. Those who own gold are not dependent on bank promises, digital systems, or state solvency.
6. Why alternatives fail
Crypto assets such as Bitcoin share some characteristics of good money (scarcity, divisibility), but fail due to a lack of acceptance, extreme volatility, and a lack of physical substance. They are an exciting experiment, but not money that has been proven over thousands of years in the Mengerian sense. Government paper and digital currencies, on the other hand, are based on coercion and trust in political authorities – the opposite of real market money. Sooner or later, they will be devalued because the political benefits of printing money are always more tempting in the short term than monetary stability.
7. Freedom through sound money
Gold and silver are more than just metal – they are institutions of freedom. Those who control the value of their money themselves are free from the arbitrariness of a planned economy.
Hard money means:
- No hidden taxes through inflation.
- No artificial interest rate manipulation.
- No redistribution through money creation in favor of the first recipients in the money cycle (banks, government, large corporations).
In the language of the Austrian School: Precious metals prevent the Cantillon effects through which the fiat system systematically shifts property from savers to debtors.
8. The return of real money
More and more investors and savers are realizing that government currencies do not deserve their trust. In times of rising debt, negative interest rates, and digital control (CBDCs), there is a growing need for stable, anonymous, physical money. Gold and silver are not relics of a bygone era, but the future of every free society. They combine economic rationality with moral clarity: No one can increase their supply at will, no one can dictate their value, and no one can “turn them off.”
Conclusion
Gold and silver are the best forms of money because they do not rely on trust in politicians or banks. They embody the principle that property, savings, and exchange can only flourish in freedom. In a world that must relearn what value really means, precious metals will once again assume the role they have always had: The foundation of a civilized, free, and sustainable economic order.
How can you buy precious metals cheaply and store them safely?
Elementum Deutschland GmbH, based in Sindelfingen (Germany), specializes in trading physical precious metals. Customers who purchase precious metals from Elementum Deutschland (or one of the other national Elementum companies in five European countries) can store them in the renowned high-security vaulting facilities in the St. Gotthard Massif in Switzerland at Elementum International AG.
Of course, you also have the option of purchasing gold and silver directly and having it delivered to your desired address. However, storing silver in the so-called open duty-free warehouse (“offenes Zollfreilager”) at St. Gotthard offers decisive tax advantages:
- The 19% value added tax customary in Germany is completely waived on purchases and sales – a considerable price advantage that effectively secures you 19% more silver for your money.
- If you store your silver in this high-security vault, you can sell it back to Elementum Deutschland GmbH at any time – without any bureaucratic hassle and also without VAT, as the trade takes place within the duty-free warehouse. You will receive the funds via bank wire.
- VAT is only payable when you physically remove the stored silver – either by picking it up in person (after prior notification) or by having it shipped to your address.
More silver, more return
Thanks to duty-free storage, you receive 19% more physical silver when you buy. This additional amount also participates in the performance of the silver price if it rises – a leverage effect that significantly improves your return opportunities.
Secure your storage space now – free of charge and without obligation
Register now for a storage space in the St. Gotthard high-security vaulting facility and receive free access to:
- our General Terms and Conditions (GTC)
- current fee tables
- annual audit reports from the auditing company BDO AG
- transparent proof of use of funds
- family discount information
- the popular children’s program “Schatz4Kids” (“Treasure4Kids”)
- as well as numerous other documents and information on storage, purchase, and resale, as well as the ratio “switching” strategy.
Register now: https://silberbar.elementum.de/
Tip for discounted entry: Enter the promotional code “50” (“Aktionscode“) and the “Vermittler” number 1000166 when registering to receive a 50% discount on the storage space setup fee.
Important: Registration is non-binding and does not commit you to anything – but it is your first step towards an independent and crisis-proof precious metal investment.
Elementum is a second-generation, owner-managed family business. Trust, consistency, and long-term thinking are at the heart of our philosophy. The Board of Directors of Elementum International AG is composed of internationally renowned experts in the money and precious metals markets, including economists, analysts, university professors, and precious metals specialists. This in-depth expertise forms the backbone of our actions—for your security, your assets, and your future.
About the Author
Prof. Dr. Philipp Bagus
President of Elementum International AG
Philipp Bagus is Professor of Economics at Universidad Rey Juan Carlos in Madrid, Spain. His research focuses on monetary and business cycle theory, and he has published in international journals such as the Journal of Business Ethics, Independent Review, and the American Journal of Economics and Sociology. He has received numerous awards for his work, including the O.P. Alford III Prize in Libertarian Scholarship, the Sir John M. Templeton Fellowship, the IREF Essay Prize, and the Ludwig Erhard Prize. Bagus is a member of the Academic Advisory Board of the Ludwig von Mises Institute Germany and the author of several books. His best-known works include “The Milei Era: Argentina’s New Path” (2024), “Full Reserve Banking versus the Real Bills Doctrine” (2024), “In Defense of Deflation” (2015), and “The Tragedy of the Euro” (2011).
Contact
Rockstone News & Research
Stephan Bogner (Dipl. Kfm., FH)
Müligässli 1, 8598 Bottighofen
Switzerland
Phone: +41-71-5896911
Email: info@rockstone-news.com
Disclaimer: This article reflects the personal opinion of the author. Elementum assumes no responsibility for the accuracy of the content and accepts no liability for its use. This article may contain links to external third-party websites. Elementum is not responsible for the content of these external sites and expressly distances itself from all information provided there. At the time the links were created, no unlawful content was identifiable. This article does not constitute a recommendation to buy or sell. Elementum International AG is a Swiss company that specializes exclusively in the storage of physical precious metals in a high-security vault facility located in the St. Gotthard mountain massif in Central Switzerland. The Board of Directors and Executive Management of Elementum International AG have been selected solely based on their professional expertise and long-standing experience in precious metals markets. As these individuals may also be professionally active outside their roles at Elementum International AG, the company has no influence over their external activities and respects their right to freedom of expression. Therefore, the views expressed by persons working with or for Elementum do not necessarily reflect the opinion of Elementum International AG. Investments in precious metals are subject to risks, including those specific to the structure of this market. Please read our full risk disclosures and consult a licensed financial advisor before making any investment decisions. Neither the author, Elementum International AG, nor Elementum Deutschland GmbH assume any liability for actions taken based on the information provided. Past performance is not indicative of future results. The cover picture has been obtained and licenced from 123rf.com.
