Gold (12 percent) is a hard currency that is held because it has worked the best over the ages and because it is an effective diversifier to other assets held, particularly fiat currencies. While before 1971 gold was at the foundation of the world’s currency system, at this time it is a relatively dead asset since there are no significant international trade and capital transactions in it and it isn’t used to balance external accounts. It is also a market that is too small to become a high share of wealth at current prices. A move to gold from fiat-currency-based assets (i.e., credit assets),
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