Money: How does gold and silver play into this?
Gold and silver are stores of value that have always protected wealth and are everlasting. Gold is mentioned 419 times in the Bible and silver is mentioned 320 times. It, therefore, merits our time to discuss it and to come to understand what God wants us to know and believe about it.
The Bible encourages the use of gold and silver as true protectors of wealth. It also teaches us that man-made mediums of exchange [paper monies such as dollars] that are not backed by precious metals, such as gold and silver, represent instability, a lack of virtue and encourages living beyond one’s means.
There are parallels related to money to be drawn between the ancient Roman Empire, the United States, and every other country. By looking at what became of the Roman Empire, we can predict with certainty the financial calamity that will eventually come to America or any nation that violates the fundamental principles of economics that relate to what is used as a medium of exchange in financial transactions. As with many lessons put forth by the Bible, the same principles about gold and silver and the use of money during biblical times are just as applicable today as they were then.
The history of mankind, from the earliest formation of an organized society till today, carries with it never-ending struggles of freedom versus tyranny, morality versus immorality, fairness versus unfairness, and good versus evil.
Historically there has always been a conflict between the use of “currency” [manmade paper] and gold and silver — the two precious metals found in our Earth’s crust, provided for us by our Lord to use as money. Any man-made medium of exchange that is not backed in value by gold and silver [as America’s once was], always leads nations down the path to increased war, greed, and ultimate collapse. Gold and silver create discipline, nurtures self-restraint, causes self-reliance, and leads to confidence in business transactions, a restrained government, and a more stable foreign policy.
We must always be aware of the distinction between currency and money. Unlike money, currency has no real value of its own. Throughout biblical times, many things have been used as money including livestock, wheat, spices, beads, and paper. You may think of the US dollar in your pocket as money. It isn’t! Cash in your pocket and in your bank has no actual value whatsoever beside the value of the paper itself. It only has value as long as people have faith in the stability of the government that issued it. Our currency is simply a medium of exchange used to purchase goods or services. Even though it is called and thought of as money, it is not real money.
On Tuesday, May 14, 1968 the U.S. Treasury Department published procedures governing the exchange of silver certificates [our currency at that time] for silver bullion during the remaining period of exchange ability, which ended June 24, 1968. After that date, silver certificates could still be used as legal currency, but could no longer be redeemed for silver. Up until that time the U.S. had issued paper money known as Silver Certificates, as printed on each one. This served as a note, a receipt, a claim check if you will, that the bank gave you to represent amounts of gold or silver that was held in its vaults. The bearer of the certificate could exchange it for the equivalent amount in silver at any time. The gold and silver certificates were systematically replaced at that time with the creation of what are now called Federal Reserve Notes. Since that time [1968], the US dollar has been nothing more than a piece of paper used as currency.
Near the end of World War II, what is called the Bretton Woods agreement stipulated all countries would peg their currencies to the US dollar. The US dollar would be redeemable in gold but only to foreign central banks, at a rate of $35 per ounce. This meant that, from World War II onward, all foreign central banks had to hold dollars instead of, or in addition to, whatever gold it had left in their reserves. This gave the United States an incredible financial advantage over the rest of the world.
President Richard Nixon officially took the US off the gold standard entirely in 1971 and our money became currency. This currency was and is completely untethered, meaning it is not linked or tied to anything of actual value. For the first time, in our country’s history, our economy was based on what is called a fiat currency, meaning it is not backed by gold or silver or cannot be redeemed for gold or silver. This is something our Founding Fathers would never have approved. Our nation’s financial system, as well as those of other countries, has been built on a huge Ponzi scheme ever since. Meanwhile, gold set its own value on the open market and within the following year closed at $42 an ounce. Today’s dollar compared to the 1971 Nixon-era dollar has lost a huge amount of its value. The spot price of Gold is, as of this writing, very much undervalued at $1,900 an oz. Think of it! At the end of WW. II an ounce of gold cost $35 dollars while today that same ounce of gold costs over $1,900. Does this mean the value of gold has gone up? No! What it actually means is that the value of the dollar has fallen that much.
Today this man-made currency we use in business transactions is created at will. If more is wanted, they just print it and put it into circulation. This way they can make more loans, wage more war, or artificially control the Stock Market or Real Estate prices. Every civilization that has risen to power and gone down this path has fallen into financial ruin. The result is always the same: financial collapse and the same constant re-evaluation of gold and silver. Gold and silver have always come out on top. Another civilization comes along, starts with a solid monetary policy based on gold and silver, begins debasing its money, and the whole process starts all over again.
This is not just a question of sound monetary policy; it is a question of morality and living according to God’s plan. Basing your economy on a finite store of value, like gold and silver, teaches respect for the value we bring through the work we perform. The work in exchange for money, not fiat currency, allows us to make responsible use of our resources and teaches us never to spend more than we have.
Financially speaking, governments are built on the strength of gold and silver. Then a paper claim check is distributed on the real money [gold and silver]. Once the paper currency is established, it is rapidly expanded through deficit spending on social programs and waging wars. Governments ultimately are forced to suspend redemption rights. Citizens are left with currency paper not tied to anything of real value. Fiat currency is designed to lose value for the citizen while enriching the banks and government.
History has shown that abandoning gold and silver as a nation’s medium of exchange has always been a bad idea. Man-made fiat currency seduces us into compromising our morality, character, honesty, and integrity, all for immediate gains and gratification.
The United States has a budget deficit; a savings deficit; and a trade deficit. Our elected politicians choose to print money, rather than earn it through productivity [GNP]. In order to manipulate Stock and Real Estate prices, the Federal Reserve lowers interest rates to hike up the price and print more money to meet the demand. We can even keep rates low by printing more money to buy back our own debt. The whole system is a house of cards. There will come a day of reckoning, just as there was for Athens, Rome, and every other country that debased their own currency and collapsed under their own greed. As it has always happened in the past, when the day of reckoning comes, there will be a deflationary avalanche around the world, which will leave no confidence in a currency of any kind. The countries of the world will be forced to adopt a different monetary system, one that has a store of intrinsic value. The countries will go back to gold and silver because gold and silver have always maintained their purchasing power independent of anything else.
It was God who created the world and all the elements within it.
Genesis 1:1
1 In the beginning God created the heaven and the earth.
Gold and silver are depicted as assets of value. Here is the Bible’s first reference to gold, the more valuable of the two.
Genesis 2:11-12
11 The name of the first is Pison [one of the four rivers that watered the Garden of Eden]: that is it which compasseth the whole land of Havilah, where there is gold;
12 And the gold of that land is good: there is bdellium and the onyx stone. [Emphasis added]
The last reference to gold in the Bible is found in the book of Revelation. There it is mentioned twenty times, letting us know that gold and other precious metals will continue right on into eternity as valuable commodities. In God’s kingdom that will surely come, we are told that the streets will be paved with gold.
Revelation 21:21
21 And the twelve gates were twelve pearls: every several gate was of one pearl: and the street of the city was pure gold, as it were transparent glass. [Emphasis added]
The age-old battle between man-made currency and gold begs the question, why do we keep making the same mistakes again and again. As a famous historian said, “Man learns from history that man learns nothing from history.”
Our Founding Fathers had a great vision for America. Many of their principles are the same fundamental lessons taught to us by biblical history. The Bible sets forth many principles about money that need to be known and applied in every generation. Here is a dozen of them.
1. Your relationship with God is far more important than money.
I Timothy 6:6
6 But godliness with contentment is great gain.
2. You can’t take money with you into eternity.
I Timothy 6:7
7 For we brought nothing into this world, and it is certain we can carry nothing out.
3. We can learn to be perfectly content without large sums of money.
I Timothy 6:8
8 And having food and raiment let us be therewith content.
4. Having a lust for money leads to destructive choices producing suffering.
I Timothy 6:9
9 But they that will [having a strong desire to] be rich fall into temptation and a snare, and into many foolish and hurtful lusts, which drown men in destruction and perdition.
5. Preparation for eternity is far more important than money.
Luke 12:16-21
16 And he spake a parable unto them, saying, The ground of a certain rich man brought forth plentifully:
17 And he thought within himself, saying, What shall I do, because I have no room where to bestow my fruits?
18 And he said, This will I do: I will pull down my barns, and build greater; and there will I bestow all my fruits and my goods.
19 And I will say to my soul, Soul, thou hast much goods laid up for many years; take thine ease, eat, drink, and be merry.
20 But God said unto him, Thou fool, this night thy soul shall be required of thee: then whose shall those things be, which thou hast provided?
21 So is he that layeth up treasure for himself, and is not rich toward God.
6. We are clearly warned to guard against loving money.
I Timothy 6:10-11
10 For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.
11 But thou, O man of God, flee these things; and follow after righteousness, godliness, faith, love, patience, meekness.
Ecclesiastes 3:10
10 He that loveth silver shall not be satisfied with silver; nor he that loveth abundance with increase: this is also vanity.
7. We must be diligent to guard against greed for money.
Luke 12:15
15 And he said unto them, Take heed, and beware of covetousness: for a man’s life consisteth not in the abundance of the things which he possesseth.
8. We must never steal money.
Ephesians 4:28
28 Let him that stole steal no more: but rather let him labour, working with his hands the thing which is good, that he may have to give to him that needeth.
9. We must guard against worrying about money.
Philippians 4:19
19 But my God shall supply all your need according to his riches in glory by Christ Jesus.
The whole Philippians passage leading up to this promise relates to this.
Philippians 4:6-19
6 Be careful for nothing; but in every thing by prayer and supplication with thanksgiving let your requests be made known unto God.
7 And the peace of God, which passeth all understanding, shall keep your hearts and minds through Christ Jesus.
8 Finally, brethren, whatsoever things are true, whatsoever things are honest, whatsoever things are just, whatsoever things are pure, whatsoever things are lovely, whatsoever things are of good report; if there be any virtue, and if there be any praise, think on these things.
9 Those things, which ye have both learned, and received, and heard, and seen in me, do: and the God of peace shall be with you.
10 But I rejoiced in the Lord greatly, that now at the last your care of me hath flourished again; wherein ye were also careful, but ye lacked opportunity.
11 Not that I speak in respect of want: for I have learned, in whatsoever state I am, therewith to be content.
12 I know both how to be abased, and I know how to abound: every where and in all things I am instructed both to be full and to be hungry, both to abound and to suffer need.
13 I can do all things through Christ which strengtheneth me.
14 Notwithstanding ye have well done, that ye did communicate with my affliction.
15 Now ye Philippians know also, that in the beginning of the gospel, when I departed from Macedonia, no church communicated with me as concerning giving and receiving, but ye only.
16 For even in Thessalonica ye sent once and again unto my necessity.
17 Not because I desire a gift: but I desire fruit that may abound to your account.
18 But I have all, and abound: I am full, having received of Epaphroditus the things which were sent from you, an odour of a sweet smell, a sacrifice acceptable, wellpleasing to God.
19 But my God shall supply all your need according to his riches in glory by Christ Jesus.
10. Even though we may work to earn money, ultimately it is a gift of God.
I Corinthians 4:7
7 For who maketh thee to differ from another? and what hast thou that thou didst not receive? now if thou didst receive it, why dost thou glory, as if thou hadst not received it?
11. As the creator and owner of all things, God is quite capable of providing money.
I Corinthians 10:26
26 For the earth is the Lord’s, and the fulness thereof.
II Corinthians 9:8
8 And God is able to make all grace abound toward you; that ye, always having all sufficiency in all things, may abound to every good work:
12. In the coming kingdom in eternity, God will provide riches for us all.
Revelation 21:19-21
19 And the foundations of the wall of the city were garnished with all manner of precious stones. The first foundation was jasper; the second, sapphire; the third, a chalcedony; the fourth, an emerald;
20 The fifth, sardonyx; the sixth, sardius; the seventh, chrysolyte; the eighth, beryl; the ninth, a topaz; the tenth, a chrysoprasus; the eleventh, a jacinth; the twelfth, an amethyst.
21 And the twelve gates were twelve pearls: every several gate was of one pearl: and the street of the city was pure gold, as it were transparent glass.
Therefore, be perfectly sure you have placed your faith in the death, burial, and resurrection of Jesus Christ as the sole basis for your eternal salvation. You can then rest assured that God will meet your needs now and provide a glorious future for you in Heaven.
