The Secret History of Gold

Myth, Money, Politics & Power by Dominic Frisby — A review.

Already published in the United Kingdom, Frisby’s new book on gold is now being launched in the US. Given gold’s recent price performance and the growing controversy over its relationship with the dollar, the timing of the US launch is to say the least propitious. The book takes you through gold’s earliest history and its evolution from ornament to money. There are archaeological evidence and myths aplenty. But the basic message is that gold emerged as the natural medium of exchange over all others (except silver which has adopted a subsidiary role). This is because of its elemental qualities and remains the highest form of money to this day.

For the lay reader The Secret History is an easy and digestible read. Much of its entertainment value is to be found in gold’s historical miscellany. Not really relevant to today’s monetary affairs, but they are useful hooks for our overall interest.

This book should be regarded as an introduction to an increasingly important topic, a catalyst towards a further understanding of what constitutes money today and its relationship with credit. Is this really relevant? It certainly is when you keep in mind gold’s legal position in US constitutional law despite the abandonment of the Bretton Woods Agreement in 1971. And the fact that global inflation only took off when that agreement was “suspended” and replaced with a loose dollar standard. Confirmation, if it was ever needed of gold’s role as an anchor for currency’s value.

Frisby includes thought-provoking charts, some of which are for the book’s original UK audience but are relevant for US readers in their context. House prices, for instance, priced in gold have hardly risen since 1971, and wages measured in gold have actually fallen. Oil has actually declined, despite the rise and volatility in the dollar price. We need more evidence of this sort to get our heads round the distortions of pricing everything in fiat currencies.

History tells us that fiat currencies, which are currencies that owe their existence to the monopoly and control of the state, always fail in the end. Therefore, gold has become a geopolitical issue being exploited by the US’s great Asian rival, China. The book gives a nod in this direction, which its readers would do well to note and follow in future.

You will find his book on Amazon and can follow Frisby on his Substack channel