In a dramatic speech to the Democratic National Convention in 1896, William Jennings Bryan declared these famous words. Bryan, the Democrats' nominee for President, was a staunch opponent of the gold standard. Instead, he advocated for a more prominent role for silver in the monetary system.

In the late 1800s, political movements—primarily centered around the Democratic Party—began pushing for inflationary policies. But the gold standard was a major obstacle. It imposed a strict limit on the government's ability to redistribute wealth through inflation. Unbacked fiat paper money—like the inferior currency we're forced to use today—was not an option back then. That's why the Democrats and other inflation advocates rallied behind the easiest form of money available: silver.

For example, farmers lobbied for inflation so they could repay their debts with cheaper dollars. In response, Congress passed the Sherman Silver Purchase Act, requiring the US government to buy set amounts of silver to support its price and trigger inflation. It was in this context that Bryan made his powerful speech condemning gold.

Ultimately, their efforts failed. Bryan lost the election, and the US did not adopt silver to make inflation more feasible. It was a temporary victory for hard money advocates. But it wouldn't last. In the decades to come, the US would move to a far worse form of money than silver: unbacked fiat paper currency.

I bring up this story for two key reasons.

First, it demonstrates how hard money frustrates the ambitions of spendthrift politicians—and that's a very good thing.

Second—and more importantly—the triumph of gold over silver is a powerful example of an economic principle few people truly understand. Grasping this concept is essential to seeing the Big Picture and making transformational profits in the months ahead.

How Silver Lost Its Monetary Role—and Why It Matters Now

Gold is a superior form of money compared to silver—except in one key area. Physical gold isn't convenient for small transactions. The smallest practical unit of gold is about one gram. As of this writing, that's worth around $100—which is not insignificant even in today's debased dollars.