How acceptable are gold and cash?
Another way to compare gold bullion and cash is to look at their acceptance and international recognition.
National currencies are freely accepted within a country’s borders. Even the dollar, the world’s reserve currency, has a declining international acceptance in trade. This acceptance revolves around the trust and faith in the issuing authorities. Knowing what the mismanagement of currencies can do for their values, traders prefer to accept the money they regard the most certain. With central banks around the world printing vast sums of money, the value of these currencies is being called into question.
Gold is different and is truly international money. Gold is a faceless currency, having no central bank or issuing authority. Gold’s value is independent of man, and it is this property that makes gold bullion bars so accepted and a potential substitute for dollars, euros and pounds.
Remembering currency crises and understanding the inflationary nature of governments and central bankers, savers often prefer to buy gold bullion. Gold bullion’s value can never disappear, and for this reason gold is internationally accepted and can be considered as an alternative to cash in the bank.