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Message:: [QUOTE="medoraman, post: 1602286, member: 26302"]Yes, gold, silver and copper were all "money" before the advent of coinage. After coins were invented, (one of the greatest boons to commerce ever), gold, silver and copper were the medium on which "money" was struck, but in itself PM stopped being "money". Now that no circulating coinage or notes are struck or backed by PM even this tenuous link between PM and "money" is no longer valid. I know its trying to argue with a brick wall with "hard money" people, since they wish so badly for it to be true, but all PM today is simply a commodity, an asset. I have no problem with the bankers giving full credit for gold reserves, heck I think they should for silver, platinum, and other "shelf stable" assets as well on the bank's books. However, giving banks credit for an asst they may own cannot magically make that asset "money" given the facts Cloud outlined above. It is NOT a medium of exchange any more than any other barter asset is, and its not a unit of account, at least in any western nation. It hasn't been a unit of account for, what, 2500 years now? Drachms, sestertii, and ducats were the units of account, NOT gold or silver. Btw, no disrespect meant to Inflexion or Juan, I simply completely disagree with the thought that any PM is "money", and wished to outline my disagreement for others to read. If they disagree, that is fine.[/QUOTE]