Excerpts from JM Bullion:
A study of 775 fiat currencies produced by DollarDaze.org states that there is no record of a fiat currency that has succeeded in holding its value over the long term. Twenty percent or 155 of the fiat currencies examined failed through hyperinflation, 21% were destroyed by war, 12% destroyed by independence, 24% were “monetarily reformed”, and 23% are still in circulation approaching one of the other outcomes.
The study found the average life expectancy for a fiat currency is 27 years, with the shortest life span being one month. The British pound Sterling, founded in 1694, is the oldest fiat currency in existence. At over 320 years of age it must be considered one of the most highly successful fiat currencies ever but note that the British Pound didn’t start out as a full fledged fiat currency.
The British pound was originally defined as 12 ounces of silver, but after Britain ended the pound’s ties to the gold standard in 1931 and the pound’s value precipitously fell. The once proud reserve currency of the world is now worth less than 1/200 or 0.5% of its original value. In other words, the most successful long-standing currency in existence has lost 99.5% of its value.
So it is historic fact that fiat currencies only last a handful of decades typically while they eventually all end worthless. The same cannot be said for silver or gold monies.
Since the start of the 21st Century to the middle of the year 2014, gold had gained 374% in its median nominal price versus 117 floating fiat currencies still in existence through that same time span (many paper fiat currencies imploded, were devalued, or went out of existence in that 14.5 year time span). Likewise silver saw an increase of 307% in its median nominal price versus 117 floating fiat currencies.
This trend of paper / digital fiat currencies losing their value to silver and gold bullion is showing no signs of slowing down over the long term (throughout this decade).
Humanity is relearning the historic lessons that gold is money par excellence, and that silver is mankind’s most trusted money for day-to-day commerce. These repeat lessons are for the first time in human history unfolding simultaneously on a global scale. I suggest we buckle up and prepare for interesting and possibly chaotic times ahead.