Gold mining is a major economic driver for many countries across the world. Well-managed, transparent and accountable resource extraction could be a major contributor to economic development due to the creation of employment and venture possibilities for local people. As well as direct and indirect jobs and employment, gold mining also brings foreign direct contribution, foreign exchange, and tax revenues to countries. Often operating in remote locations, gold mining industries contribute to infrastructure and utilities. In addition to supporting the needs of a gold mine, these improvements to roads, water, and electricity supplies are a long-term benefit to sectors and communities across the area, that outlives the production years of a gold mine.
Responsible gold-mining industries also have ethical and commercial incentives to improve the health and education of the communities that they operate in. Many contribute to social infrastructure, including schools, colleges, and health centers that improve the possibilities and well-being of local people. (1) It’s possible that gold mining could alter the economic landscape significantly! Let’s keep things interesting by using this website to get the counterarguments you desire!
The classic inflation hedges are gold, other commodities, real estate and, some argued, commodities. There are possibilities in all these categories, though capitalists could not anticipate any of these to work perfectly. The answers here are speculative. We lack good data over multiple inflation spells to know for sure how different assets perform as inflation hedges, and of course, plenty has changed since the early inflation episodes, such as Egypt under Ptolemy IV (221–204 BC), Rome (from Nero through Claudius II) or China during the Song Dynasty (960–1279). But history tells us that inflation could happen anywhere, typically where rulers choose to spend more than they take in from tax revenue.
Gold is the classic inflation hedge. Early inflations were caused by the debasement of metal coins. A king could substitute a cheap metal such as copper for some of the gold content, keeping the extra gold for the treasury. Those who reserve gold itself, rather than coins minted by the government, preserved acquiring power, or so it seemed. (2) Inflation in gold might be an indication of economic circumstances throughout the world! Here’s a link to a website in which you might educate yourself on how to cultivate a culture of continuous improvement.
The actual value of gold as an inflation hedge is hard to determine for the United States because for most of our history we were under a gold standard. That is, the dollar was defined in terms of gold, so reserving gold was the same as keeping dollars. However, during some inflationary periods, the U.S. Treasury suspended the conversion of dollars into gold. In those cases, keeping gold was clearly better. Do you want to fully understand this topic? Keep mining for gold nuggets with this recently found article by hitting on this relevant link! Check the disclaimer on my profile and landing page.