Why wouldn't there be a reason to invest under a gold system? Why not the standard reason: a bigger return on investment?
There would be a reason, though less compelling and with higher risk.
The difference of growing wealth really comes down to who is paying interest and who is collecting. Investing gets you some of that interest income to offset inflation.
If there was no throttler such as a fiat currency then everyone would have gold holdings. This means that just holding onto your money is more lucrative than investing in many types of investments.
In fact some people put money in gold for that very reason today. So just keeping your money in gold would be an investment rather than taking risk to invest, especially in a time of recession or depression.
So sure you might have a bigger return on investment on some things but you are not separating or stretching your gold any more than other people can.
Fiat currencies and inflation as well as interest fuel and force investment. I think that can be good, it sure leads to more economics and money movement.
People can still put their money in gold, savings, or other currencies but this is sort of a negative motivator when things like savings accounts or money markets pay less than inflation. It forces you to invest in companies, try businesses etc.
There would be a reason, though less compelling and with higher risk.
The difference of growing wealth really comes down to who is paying interest and who is collecting. Investing gets you some of that interest income to offset inflation.
If there was no throttler such as a fiat currency then everyone would have gold holdings. This means that just holding onto your money is more lucrative than investing in many types of investments.
In fact some people put money in gold for that very reason today. So just keeping your money in gold would be an investment rather than taking risk to invest, especially in a time of recession or depression.
So sure you might have a bigger return on investment on some things but you are not separating or stretching your gold any more than other people can.
Fiat currencies and inflation as well as interest fuel and force investment. I think that can be good, it sure leads to more economics and money movement.
People can still put their money in gold, savings, or other currencies but this is sort of a negative motivator when things like savings accounts or money markets pay less than inflation. It forces you to invest in companies, try businesses etc.