Whenever you hear that gold standard currency was a disaster — as used in the 19th century by over 40 trading nations — and that gold is a largely useless yellow metal except for personal ornaments, don’t believe a word of it.
The facts are that: (a) most central banks buy gold from time to time to build up stocks because they still regard it as a fundamental currency; (b) gold continues to be mined even though it is becoming more difficult to find; (c) When the euro currency — the epitome of paper currency — was started 15 years ago, the European Central Bank (ECB) made sure that it had plenty of gold bullion in its vaults; (d) Special Drawing Rights (SDRs) — an invention of the International Monetary Fund (IMF) designed to do away with gold as a currency — are simply not used. The IMF also keeps gold bullion in its vaults.
In other words, don’t pay attention to what government officials say about gold, look at what they do with it. It is no wonder, therefore, that China and Russia, already the largest producers of gold in the world are not letting up. They’re producing against the day when the next 2008-type dollar catastrophe hits the world and when a new trading currency can be introduced which is not dependent on the deliberations of bureaucrats for its value.