For most people “reality” will instantly be defined something as following

“the state or quality of being real”, “a real thing or fact” or “something that is real”

So far you’re agreeing and nodding, because that’s what the dictionary tells us first and we have an explanation of it now.

On the other hand what is real? Is it a value that can be defined on it’s own? Is it something that has dependencies?

I told you what the dictionary defines it in simple terms, but you may never dug your mind into what it really means. It’s defined on the philosophic level as following

“something that exists independently of ideas concerning it”

Wow. That crushed probably your first understanding of reality, didn’t it?

You actually thought reality was something that is defined because of something else that surrounds it, didn’t you?

I will give you one example, open your wallet and physically take out money and put it in front of you. Is that real money you are holding?

Yes? Are you sure about that?

You probably define money as real because all of the other holders trust value to it as you do right now. Let’s put it on a grander scale.

You have a 100 dollar bill in front of you and you also have a gold coin worth 100 dollars on today’s market. Which one would you choose to hold if you were to put them both in the bank 1) a hundred dollars with interests or 2) store the gold coin in your bank box?

 If you were to put the money away for long term saving the same way, like say fixed for 10 years. Would you still choose the hundred dollars in paper for convenience of purchasing stuff?

If you define your present currency as real money, you are actually defining it based upon trusting the creator of that money to be wise and non speculative with your hard worked earnings.

In other words, if you choose to exchange your “long term” savings into precious metals, you are actually preserving your wealth way beyond what interests can give you for the same amount held in the bank account.

Precious metals will give you the same purchasing power as you were meant to ten years from now. Exchange your long term savings to gold, silver and other commodities and you will be having a great pension when you are older. Not reliable on anyone else but yourself.

I am thankful for having the privilege to share Austrian economic thinking to the world and get you to understand that money is only real when valued on its own.