Long ago, the U.S. had a gold standard. This meant people could exchange their dollars for a fixed amount of gold.
The U.S. dropped away from a strict gold standard in the 1930s, and President Nixon abandoned it altogether in 1971. Since then, the dollar has been a “fiat currency.” Meaning its value isn’t tied to anything tangible such as gold. Those little green pieces of paper, and the digits in your bank account, are only “money” because the U.S. government says they are.
The fact is, gold has maintained its purchasing power over a huge span of history, and that isn’t likely to change.
Caledonia Mining Corporation plc (LON:CMCL) is a profitable cash generative gold producer with a strong growth profile, Caledonia’s primary asset is the Blanket Mine in Zimbabwe which produced 54,512 ounces of gold in 2018 at an All in Sustaining Cost of $802/oz.