Gold vs. Paper Currency

gold barsGold.  Everyone has been talking about it.  You’ve seen the commercials, heard the ads, and read the articles.  Gold has become such a huge buzz topic in recent years, but why?  It’s not like it has not been around for thousands of years.  Why all of the sudden interest in gold?  For that matter, why have gold prices skyrocketed?  Interest has been spiking in gold because people are afraid.  They are afraid of the devaluation of paper currencies.

I’m not going to pretend to be an expert on precious metals, but what I have been reading about recent inflation rates is troubling.  People often buy gold as a hedge against inflation; they buy it to protect the value of their money.  Paper money, such as dollar bills, is known as fiat currency.  According to dictionary.com, fiat is Latin for an authoritative decree, sanction, or order.  This means that fiat currency is money which has no inherent value on its own, but is given value by the order of the federal government.  The government of the USA has used paper money for quite some time, but until 1971 that paper money could be exchanged for a certain fixed amount of gold, thereby tying the money supply to the price of gold.  In 1971, President Nixon took the country off of the gold standard, which allowed the value of the currency to fluctuate according to supply and demand principles and we have been dealing with inflation ever since.

One of the big issues with gold is where to keep it.  Obviously, carting around gold is much less handy than carrying paper.  When people buy gold, they often run into gold storage issues.  The first problem is that gold is heavy, bulky, and difficult to transport so wherever one may keep his gold; it is probably going to stay there.  The second issue that gold purchasers face is security.  Gold is one of the rarest elements in the world.  In fact, all the gold that has ever been mined in the entire world could fit inside three Olympic-sized swimming pools.  Since gold is rare and shiny, man has been using it as currency for thousands of years and anything used as currency is highly susceptible to robbery.  For the not so intrepid gold buyer, many different companies will charge a fee to store the gold for buyers.  They build impressive vaults to keep the precious metal safe.

Gold storage is a very important issue for anyone who has a strong position in precious metals.  Gold purchasers are very diligent about where they keep large amounts of gold.  They take time to research the best vaults, compare fees, and follow gold prices.  Why don’t documents receive the same due diligence?  After all, some documents are worth more than gold.  Some documents contain financial information, personal information, or even gold ownership information.  Everyone has documents, but very few take care of their storage.  Be proactive about protecting your paper assets.  Any company who holds client information has an obligation to protect that information.  Tarheel Imaging and Microfilming is the Fort Knox of the document world.  We will take your documents, organize them, box them up, give them a barcode, and then transport them to our secure warehouse where they will be safe from flood, fire, and theft.  We will treat your papers like gold.  All we are waiting on is a phone call.