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Thursday, April 18, 2019

Gold Less Bulky Than Paper Money

One of the arguments against the use of gold as money is that it is supposedly more bulky than paper money. I have recently purchased some one-tenth-ounce Canadian Maple Leaf gold coins, and I was surprised to see that they are much smaller and lighter than a stack of $20 bills.  A one-tenth-ounce gold piece is worth about $128 at current prices; it is tiny--much smaller than a $20 bill.  There was a time when $100 or $500 bills were widely used, but today because of money laundering concerns bills larger than $50 are rare.  A stack of six $20 bills weighs more and is bulkier than a $128 gold coin.

The claim that paper money is necessary because carrying gold is inconvenient is a fake rationale.

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