Money should be the easiest questions to answer in economics; after all, money is the one thing that we all use in an economy—surely we know what it is, and where it comes from right?
Money is primarily a medium of exchange or means of exchange. It is a way for a person to trade what he has for what he wants. Ideal money has three critical characteristics: it acts as a medium of exchange; it is an economic good; and it is a means of economic calculation.
Although money can take an extraordinary variety of forms, there are really only two types of money: money that has intrinsic value(i.e gold) and money that does not have intrinsic value(i.e currency).
Gold and silver are the most widely used forms of commodity money. Gold and silver are intrinsic because they could be used as jewelry and for some industrial and medicinal purposes, so they have value apart from their use as money.
So you can now see that there exists a large, but not too large, and almost fixed quantity of gold in the world, almost all of which is held by its owners as a tangible store of wealth.
By contrast to gold's restricted supply of our money systems are currently expanding out of control. Modern monetary policies are expanding the supply of currency, under political direction.
The currency—paper money and coins—used today is fiat money; it has no value other than its use as money.
What is different about gold and other forms of money is the way they disappear, and why. Because of its natural qualities, it is recommended as a high quality form of money.
As you make profit of your talent and human capital, do not forget to invest wisely. This way your money can also work for you. Real wealth lies in long term investment such as gold and other investment vehicles.
Growing up, you were probably taught that you can earn an income only by getting a job and working. But there's a limit to how much you can work and how much money you make out of it–not to mention the fact that having a bunch of money is no fun if you don't have the leisure time to enjoy it.
Since you cannot create a duplicate of yourself to increase your working time, you need to send an extension of yourself–your money–to work
What is an Investment Vehicle?
An investment vehicle is a product used by investors with the intention of gaining positive returns.
Investing means putting your money to work for you–actually, it's a different way to think about how to make money.
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