What is money? Why I like Gold and Silver

A good friend from my high school and college days recently asked me why gold is better money than  fiat. This was my answer:

Do you know the phrases "talk is cheap" or "actions speak louder than words"? These capture an important truth: words, like fiat currency, can be empty or even deceptive unless backed by meaningful substance. Fiat currency is akin to “talk”—a promise of value. Gold, by contrast, is like “action”—a tangible, undeniable truth. But let's explore this further with some nuance.

Gold doesn’t have to be money, just as you don’t have to use a hammer to drive a nail. A tool is simply something used to get a job done. While carpenters overwhelmingly prefer hammers for their efficiency and design, there are occasions when someone might pick up another object—a rock or even a shoe—to drive a nail. The choice of tool depends on its qualities and suitability for the task. Similarly, throughout history, people have chosen different forms of money, with gold and silver being the most common because of their unique qualities. These metals are durable, divisible, portable, and rare—qualities that make them exceptionally well-suited as a medium of exchange and store of value.

However, other societies have used different forms of money. The islanders of Yap used massive stone discs, Native American tribes used shells, and certain ancient cultures used salt or grain. These choices reflect the local needs and available resources of each community. Money, like any tool, is chosen because it serves a practical purpose—not because it has an intrinsic obligation to be used. 

This is why mandating a specific form of money makes as much sense as mandating that all nails must be driven with hammers. Money exists to serve humanity, not the other way around. When governments dictate a single, fiat currency as the only acceptable medium of exchange, they are not just mandating a tool—they are enforcing a system of control. It becomes less about utility and more about power. Fiat currency, when untethered from real value, often becomes a means to enslave rather than serve. 

For money to truly serve man, it must align with natural law and human needs. Gold and silver have stood the test of time, not because they are mandated but because their qualities naturally meet the demands of trade and value preservation. The moment money ceases to serve its function—as fiat currencies often do through inflation and manipulation—it fails as a tool.

Yet, for money to serve man rightly, man must first serve God alone. When we lose sight of this higher calling, money becomes an idol. Just as mandating a single tool denies the creativity and sovereignty of individuals, worshiping money—or allowing it to dominate our lives—leads us astray. The purpose of money is to facilitate human flourishing, but human flourishing requires alignment with truth, justice, and God’s natural order.

In the end, the true value of any form of money lies in its ability to reflect and respect these principles. Gold, silver, or any other form of money can only serve well if we understand its role—a tool, not a master. And to ensure money serves its rightful purpose, we must serve God and truth above all else.

 A fair question might be, “Why can’t we just say we are using fiat currency without serving it?” The problem is that fiat currency doesn’t exist in reality—it is merely a claim, a number, an idea on a screen or piece of paper. It has no inherent substance or utility. You cannot hold fiat currency or use it like salt, gold, or even a hammer. It is not a tool rooted in reality; it is a fabrication rooted in illusion.

When you possess an ounce of gold, you have something tangible. You can see it, hold it, trade it, or shape it into something useful. It has value not because someone declared it so, but because its properties—durability, scarcity, beauty—make it inherently desirable. On the other hand, when you possess one "ounce" of fiat currency, whether a dollar or a digital balance, you have nothing. It is simply a placeholder for a promise that may or may not be kept, contingent on an endlessly manipulable system. To work for nothing, and to use that "nothing" to acquire something real, is exploitation. It is theft in disguise.

This system is not only unjust but profoundly damaging. It depletes not only the wealth of those who labor under it but also their integrity and dignity. Those who rely on fiat currency are not simply using a flawed tool—they are participating in a lie. They are operating within a system that pretends nothing can be turned into something, perpetuating deception with every transaction.

The Bible makes it clear that God cannot lie (Titus 1:2), for He is the source of all truth. To align with God is to align with what is real, just, and unchanging. By contrast, fiat currency reflects the nature of its true master: the devil, the father of lies (John 8:44). It lures people into believing they are exchanging value when, in fact, they are perpetuating theft and falsehoods. It tempts individuals to worship the power of the system rather than seek truth and justice.

So to “use” fiat currency while claiming not to serve it is a contradiction. It would be like claiming to use deception without serving lies. When the foundation of a tool is falsehood, its use inevitably enslaves its user to the lie it represents. To escape this bondage, we must reject falsehood and align ourselves with truth. Only by serving God, who is the source of all reality, can we free ourselves from the tyranny of these fabrications and live in justice, dignity, and true abundance.