Fool’s Gold Education

By Douglas Marolla

The Missing Lesson on Financial Literacy

 

Editor’s note: The opinions expressed here are those of the authors. View more opinion on ScoonTV

The most lamented gap in education among students is the absence of financial instruction. Young people frequently express frustration, even anger, that they are not taught the fundamentals of money management, investing, or financial literacy. Given the prominence of Bitcoin, GameStop, crypto, and trading apps like Robinhood, many young people assume that investing is a fast track to wealth. They see stories about people buying obscure coins, like fartcoin, trumpcoin, and dogecoin (all real), watching their value skyrocket by thousands of percent, and suddenly flaunting their newfound wealth online. Understandably, they ask,

Why isn’t there a class in school on how to make money like that?

The truth is, there isn’t one, nor should there be. That kind of speculation isn’t sound financial practice, it’s gambling.

However, what should be included in education is basic finance: what money is, how it works, and why understanding financial systems is critical. Even more conspicuously absent from the curriculum is any discussion of gold; an asset with thousands of years of historical significance, a pillar of financial security, and a hedge against economic instability. As of this writing, gold is valued at over $3,000 an ounce, a significant increase from just a year ago. If an individual had invested in gold five years ago when it was around $1,200 an ounce, they would have seen substantial gains. Yet, there are no viral videos of gold investors lighting cigars with hundred-dollar bills or buying luxury sports cars.

Why?

Because gold is ignored by mainstream media, academia, and financial discussions.  We get fed clownish stories about speculators driving their new Lambos, yet never hear about the millions of people who get the rug pulled and are left with massive losses.

For many years, I viewed gold as an investment — something to buy low and sell high. But Warren Buffett’s perspective on gold, that it “just sits there collecting dust,” led me to a deeper realization. Gold is not meant to be an investment in the traditional sense. Rather, it is the ultimate insurance policy against economic mismanagement and financial uncertainty. Unlike stocks or fiat currency, which are subject to government policies, market manipulation, and external factors, gold is a financial asset that remains outside the control of any institution.

Golden Neglect

The neglect of gold is intentional. For decades, the financial elite have ridiculed its significance, shaping narratives that discourage the public from understanding its true value. John Maynard Keynes famously called gold a “barbarous relic,” a quote that has been echoed by policymakers and economists who prefer a system where they control currency issuance and monetary policy.

Consider how Franklin D. Roosevelt’s executive order in 1933 forced Americans to turn in their gold, effectively dismantling the gold standard. Seems un-American to me. 

Later, in the 1970s, the U.S. dollar was officially decoupled from gold, leading to the creation of the petrodollar system. This allowed governments and central banks to manipulate currency supplies freely, untethered from the constraints of a gold-backed system.  Look how well that turned out for working Americans.

Remember, no entity can create gold.  It chains the government to something with tangible value.  Fiat currency, made from nothing, can be controlled and created by any powerful interest.  It’s what the Federal Reserve Bank of the United States does now.  It wasn’t always that way.

The consequences of this shift have been profound. The Federal Reserve now dictates interest rates, controls monetary supply, and exerts immense influence over economic conditions. Fiat currencies are manipulated through inflationary policies, reducing their long-term purchasing power. Yet, gold remains the one financial asset immune to these forces. It does not rely on any government’s promise, central bank policy, or corporate earnings report. It simply holds value.  These are easily understood concepts.

Financial Education

For most Americans, financial education is woefully inadequate. Instead of being taught how money truly works, students are conditioned to accept a system in which fiat currency and debt-based economics are the norm. This ignorance has left generations ill-prepared for economic downturns, recessions, and financial crises. Meanwhile, in Asia, particularly in China and India, gold is deeply ingrained in cultural and financial practices.

The Shanghai Gold Exchange has bolstered gold demand, shifting price-setting power away from Western financial institutions. In the West, gold is mocked or ignored; in the East, it is hoarded and valued.  Joe Sixpack is ignorant when it comes to gold.  Jiao Sixpack is not.

Despite the financial establishment’s efforts to suppress gold’s role, its resurgence is inevitable. The rising gold price signals declining confidence in fiat currencies and centralized financial systems. Those who dismiss gold as irrelevant are missing a crucial lesson in economic history. Throughout time, civilizations have relied on gold as a store of value, a medium of exchange, and a safeguard against economic catastrophe. Unlike stocks, which are subject to corporate governance and market fluctuations, or paper currency, which can be devalued overnight, gold’s intrinsic value remains unchanged.  These are not difficult lessons to understand.  A cursory analysis of early 20th-century American history would get a high school student up to speed.

Imagine you own shares in a major company like Apple or Tesla. The stock price is affected by countless variables—earnings reports, supply chain issues, investor sentiment, and macroeconomic factors. You have no control over these elements. Gold, on the other hand, is free from such entanglements. It does not require management teams, quarterly reports, or government intervention to retain value. Owning gold grants you financial sovereignty, an independence that no government or central bank can take away.  This is how America, and much of the world, operated for centuries.  Schoolchildren learned about gold, what it was, and how it anchored the financial system.

Gold’s exclusion from financial education is deliberate. Teaching young people about gold would empower them with economic independence, something that the ruling class has historically sought to suppress. The United States was once unique in its commitment to economic freedom, as evidenced by the Constitution’s provision that taxes could be paid only in gold or silver. This restriction was meant to prevent governments from debasing currency, a lesson modern policymakers have conveniently forgotten.  It isn’t a coincidence that modern congressmen have become millionaires while earning a pedestrian salary. 

The one thing Republicans and Democrats seem eternally united in is their rabid focus on seeing to it that Americans never achieve economic independence. 

Equality, Liberty, and Gold?

The truth is, gold is the ultimate equalizer. It provides security in times of economic instability and acts as a hedge against inflation and financial mismanagement. The fact that it is not taught in schools is a glaring omission, one that keeps people dependent on a system designed to benefit those in power. But the tides are turning. As awareness grows and more people recognize gold’s role in preserving wealth, its importance will no longer be ignored.

While gold may not be something you can use to buy a coffee at Dunkin’ Donuts or a Chalupa at Taco Bell, it remains one of the most valuable assets a person can own. It can be sold, it is universally recognized, and immune to the policies of central banks and governments. Whether or not it is discussed in classrooms, its role in economic history is undeniable.  American citizens taught in one room schoolhouses understood the independence that tangible goods like gold provided.  Now that we have a bloated, compulsory government school industrial complex, our young citizens have lost their fierce ethos of independence that was once nurtured in an environment that held gold as the standard. 

Perhaps it is time for gold to return to school, not just in vaults or investment portfolios, but as a fundamental part of financial education.  Here’s a radical thought: let’s reintroduce these concepts in the inner cities – areas that need this knowledge the most.  After all, those who understand gold understand money. And those who understand money have the power to shape their financial future, independent of the institutions that seek to control it.

 

 

Curtis Scoon is the founder of ScoonTv.com Download the ScoonTv App to join our weekly livestream every Tuesday @ 8pm EST!