Have you ever looked at a dollar bill and noticed the creepy pyramid with the all-seeing eye on top? Pyramids have long symbolized strength, stability, and continuity. All those features would seem worthy adjectives to describe a desirable type of money for our civilization to thrive.
In 1934, U.S. currency possessed some impressive characteristics. Take a look at the $10,000 bill below which was redeemable for gold at $35 per ounce. Had you redeemed the bill for gold in 1934 and held it until today it would be worth more than $428,000. What an incredible gain you may be thinking to yourself but that’s the wrong way to look at things.
A more accurate view is to look at how much the dollar has depreciated during that time. It takes $428,000 of “paper” dollars to represent the same purchasing power as that 1934 $10,000 bill. That’s a scary indictment of the negligence and profligacy of the U.S. Treasury. But the U.S. is not alone. The Roman empire diluted gold coins by mixing them with other metals and governments since time immemorial have struggled to keep their greedy fingers away from the convenience of a printing press.
Gold has always served as the base of the pyramid for money. Nothing is more reliable as money than gold. Over 5,000 years it has proven its worth through the rise and fall of empires with its uncanny ability to preserve wealth as a store of value all while being a unit of account and medium of exchange. But what happens when the pyramid of money gets flipped upside down?
Since 1971 when the U.S. left the gold standard there has been an explosion in paper “money” and only recently are concerned investors wondering if the paper is worth anything. If we look at gold as the base then any other financial instruments must necessarily be stacked on top. When we do this we can see that the pyramid has been flipped upside down.
We are reaching a turning point that is of historic proportions. Never in the history of the world has so much debt accumulated globally. The sad reality is that inverted pyramids always crumble. They are unstable by their very nature and just like the laws of gravity ensure that an object tossed in the air will soon thereafter fall to the earth so will paper money propelled into the air by government central banks.
As we find ourselves in a world of significant transition it becomes ever more important to understand how to democratize access to gold and restore it to its rightful role as currency in a modern economy.
Coro was born to serve this mission by intelligently bridging the gap between gold’s hard-earned legacy as money and modern technology that allows gold to be used effortlessly as everyday currency.
Working together with our customers, Coro’s mission is to flip the inverted financial pyramid upside down once again so that it returns to its stable base. Join us in our mission by signing up and sharing this newsletter. We’ll keep you apprised of our progress and you’ll be the first in line to access our financial solution and contribute to a more stable world.