The Seven Characteristics of Money

gold_silver

Source: Miles Franklin – The Seven Characteristics of Money

Good money must have the following 7 characteristics. Ask yourself what is the difference between a currency and money? Currency does not have one of the 7 characteristics below – store of value. Fiat currencies like dollars and euros are currencies – not money.
(1) It must be durable, which is why we don’t use wheat or corn or rice.

(2) It must be divisible, which is why we don’t use art work.

(3) It must be convenient, which is why we don’t use lead or copper.

(4) It must be consistent, which is why we don’t use real estate.

(5) It must possess value in itself, which is why we don’t use paper.

(6) It must be limited in the quantity that is available, which is why we don’t use aluminum or iron.

(7) It should have a long history of acceptance, which is why we don’t use molybdenum or rhodium.

Only GOLD and SILVER fit all seven characteristics.

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