“As a medium of exchange, money needs to have convertibility and liquidity. Paper currencies have these qualities, so does gold. To add to the store of value, money needs to retain its value over long periods.
“Gold has retained its value, though with fluctuations, over centuries. Even now its purchasing power in terms of physical assets is not far distant from 300 years ago, before Isaac Newton’s recoinage of 1717. Most paper currencies lost moreÂ than 98 per cent of their purchasing power in the 20th century alone.”Â (William Rees-Mogg, The Times, February 25, 2008)