There are so many other materials in the world besides gold, without which life would be much more difficult—sand, salt, coal, iron, gas, fossil fuels, lithium, bauxite, and copper;

Dr. Ileana Johnson Paugh ——Bio and Archives--April 4, 2026

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Gold is useful or useless, depending on who you ask. Gold serves its purpose for coinage, store of value, portability, collectors, medicine, chemistry, electronics, and on the finger of every engaged or married couple around the globe as a symbol of the circle of life and forever love.

Gold stopped being the universal yardstick behind the value of every currency after 1971

Gold used to be a universal yardstick of coinage value in market exchanges. Gold was helpful because it did not die on the way to the market, held its relative value in any amounts, did not tarnish, and it was the gold standard around the globe since 2500 B.C., relatively speaking.

Gold stopped being the universal yardstick behind the value of every currency after 1971, when the U.S. discontinued redeeming its paper currency with gold. That is when money became valued by government fiat (Latin for ‘let it be’).

Major trading nations had a fixed, official rate of exchange (1944-1971) tied to the U.S. dollar. Each dollar could be redeemed for gold at $35 per ounce. In 1971, the Nixon administration abandoned the gold standard and, since then, currencies have floated daily in value against each other, influenced by supply and demand, and by the monetary policies of various governments in their efforts to ‘manage’ their specific currencies. Some countries pegged (linked) their currencies to the value of the U.S. dollar or used the U.S. dollar.

BRICS countries (Brazil, Russia, China, India, and South Africa) have agreed to trade in their own currencies and crypto currencies, via a payment called BRICS Pay.

There are countries that experience wild and rapid changes in the value of their currencies for various reasons, i.e., they cannot issue their own currencies, their economies are in turmoil, runaway inflation, deflation, defaults on loan agreements, huge balance of trade deficits, and bad economic policies that exacerbate the situation.

Gold reserves and a strong currency have always been stability goals. The value of gold has exploded to the highest level of $5,500 and recently to $4,600 per troy ounce (31.103 grams).

The spot price of gold represents the real-time market value for immediate delivery of 0.999+ pure gold. The global trading of exchanges COMEX in New York and the London Bullion Market Association (LBMA) determine the price.

Gold has always been a sign of wealth, a store of value, and a metal traded as gold bullion

Price factors are supply and demand of gold, economic uncertainty, inflation rates, currency strength (especially the U.S. dollar), central bank policies, and geopolitical events such as wars.

Gold has always been a sign of wealth, a store of value, and a metal traded as gold bullion. According to Ed Conway, “Great Britain has no goldmining, no significant gold reserves, but is one of its biggest producers. That is because much of the world’s physical gold passes through London on its way somewhere else.”

How useful is gold in our modern society? Aside from store of value in the bank vaults of the Federal Reserve Bank of New York, wedding bands, engagement rings with precious stones, and shiny jewelry, there are not many applications for gold.

One could say that we could live comfortably if there was no gold unearthed from mountains, a very toxic process with cyanide and mercury that hurts the environment, especially the rivers and soil.

A wedding ring required long ago one third or less of a ton of ore extracted from the earth in the traditional mining way, with a pickaxe. Experts say that today it takes 4-20 tons of rock blasted from a mountain to make one gold band.

After rocks are blasted from the side of a mountain in massive quantities, they are crushed and ground into a powder, then mixed with a cyanide solution which separates the gold from the rest of the dust. Do cyanide and mercury used in the process leech into the environment? Sometimes they do and low fines are levied.

John Maynard Keynes once called gold “a barbarous relic.” Gold does play a small role in electronics and chemistry, about ten percent of demand.

There are so many other materials in the world besides gold, without which life would be much more difficult, but simpler as judged by minimalists, environmentalists, and conservationists—sand, salt, coal, iron, gas, fossil fuels, lithium, bauxite, and copper.

Dr. Ileana Johnson Paugh, Ileana Writes is a freelance writer, author, radio commentator, and speaker. Her books, “Echoes of Communism”, “Liberty on Life Support” and “U.N. Agenda 21: Environmental Piracy,” “Communism 2.0: 25 Years Later” are available at Amazon in paperback and Kindle.

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