You’ve probably looked at a $1 bill and noticed the pyramid with the all-seeing eye on top. Pyramids have long symbolized strength, stability, and continuity. All desirable features for the type of money we need for our civilization to thrive.
In 1934, U.S. currency possessed some impressive characteristics. Take a look at the $10,000 bill below, which was redeemable for gold at $35 per ounce. Had you redeemed that bill for gold in 1934 and kept that gold until today, it would be worth more than $428,000. You might think that’s a great turnover, but unfortunately, you’re looking at it the wrong way.
United States Government
A more accurate view is to look at how the U.S. dollar has depreciated over that time. It takes $428,000 of “paper” dollars to represent the same purchasing power as that 1934 single $10,000 bill. That’s a scary indictment of the lack of restraint of the U.S. Treasury. But the U.S. is not alone. The Roman empire diluted gold coins by mixing them with other metals, and governments since time immemorial have struggled to resist the temptation of the convenience of a printing press.
Gold has always served as the base of the money pyramid. Nothing is a more reliable form of money than gold. It has proven its worth over 5,000 years, through the rise and fall of empires, because of its uncanny ability to remain a store of value as well as a continual unit of exchange. But what happens when the money pyramid gets flipped upside down?
Since 1971, when the U.S. left the gold standard, there has been an explosion in paper “money,” and concerned investors are increasingly casting into doubt what that paper is really worth. If we look at gold as the base asset then any other financial instrument must necessarily be stacked on top. But these other assets are attributed more and more value as they stack up, so that the pyramid essentially becomes an inverted one.
We are reaching a turning point of historic proportions. Never has so much debt accumulated globally. The reality is that inverted pyramids always crumble. They are unstable by their very nature, and those assets – like paper money – which are sustained by government central banks and speculation will eventually fall to the ground.
In this significant transition, it is becoming ever more important to understand how access to gold can be democratized, opened up to the public, and how to restore gold to its rightful role as the universal stable currency in a modern economy.
Coro was born to serve this mission by bridging the gap between gold’s historic but inaccessible legacy as money, and modern technology that will finally allow gold to be used effortlessly as everyday currency.
Together with our customers, Coro’s mission is to flip the inverted financial pyramid so that it can return to its stable base.