by David Chen

In ancient times, food, cloth, silk, land had all been used as commodity currencies in trade or in procurement of labor and services.  Today, real estate is another form of commonly seen commodity currency, in most of the developed countries.  Such commodity currencies also have their pros and cons:

Pros

• With high intrinsic value that is called “utility”
• Can be liquidate in principle, with no worries that such currency will ever be totally rejected on the open market

Cons

• Price is often too low in trade, due to fluctuating demand, therefore over production
• Demand often are subject to public opinions and personal tastes
• Lack of coincidental demand among all traders, in other words, difficult to find the same “common” interests
• Difficult to carry in trade
• Difficult to be used in international trade as foreign exchange currency
• Difficult to be used in monetary policies to stimulate economy within a country

 

Does Transparent Gold possess the best of both worlds?

Answer: Mostly.