INFLATION IN THE EYES OF GOLD
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Whenever you read about inflation, at the end of the sentence you may read the importance of #Gold to curve the inflation in the financial market. This is why most countries carry a vast amount of gold to help them when tough gets going. Lately the price of gold did not move much from the hype of 2020 when it reaches once $2k+ an ounce. Gold for century balances the market and give power where it should. Till now Gold has been remain strong to its price point around $1778/ounce. At the same time inflation is common subject in the news.
The inflation I am referring to is the one that has to do with consumer price index where elementary needs of the population goes to the roof. Right now Venezuela is the pure example of this inflation. Turkey is another example for this as well. Even the US has high inflation for a country with such wealth. From May the inflation is at 5%. The goal by the Fed should be at 2%. It shows how unsustainable it is when your economy has to grow through this. The Chairman said yesterday the way the economy is moving is not right.
From his point of view GDP will help to alleviate the gap. I can tell you the system they have in place is the source of the problem with record deficit. Usually when the Chairman talks you can see swings in the price of the market and you get an idea to adjust as an investor. So much is at stake when you are the one printing the greenback. Putting everything together I think everyone is looking at what will happen in the incoming months. 5% will not work in the US. When gas price is too high, people tends to stay home. Liquidity is one key ally of the dollar to float in the market.
Gold may not have the only say to combat inflation. In 21st century Gold can do so little to fight inflation. The real answer for regular people and the institutions know it well belong to digital currency. It can be liquid, fast to change hand and it keeps the value where value should be. You may never hear this from a Gold holder. It is getting clear that crypto currency is growing in the mind that digital currency will pave the way to curve inflation. When BTC fell to $30k I thought Gold will grab that billion and rise to $2k+. The sentiment is not there.
While Gold has it s purpose now it remain archaic in the eyes of the population in terms of quick ability to change our way of living.
Politically let gold remains where it is with a price stagnant to the world evolution. Now you see the true power of crypto. BTC went down and couple days it goes up. Crypto brings reality where nobody can fool you of the market. Through blockchain technology you see everything eye wide open. Gold belongs to a vault where crypto belongs to the hands of everyone to live of your means.
There you have it with inflation with gold and crypto. Inflation allows you to measure the market. So far there is more to understand while the world market is trying to recover after covid. One thing can be sure the market will rebound and inflation will always be around in your country to gauge the economy. It is getting clearer why crypto is the best edge for inflation due to the people feeling the pressure everyday. No need to wait for the news to tell you things are bad. Crypto is the voice.
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Although I value gold, it's an excellent form of holding Wealth even better than fiat by all means but then I won't put my money in it, despite crypto's volatility, overtime you get more value for money in crypto.
I have been picking pieces everywhere to understand why Gold is so valuable.
First cause it is shiny. You cannot find it easy on the ground, you have to dig to get it.
Looking to know how much gold exist, it is hard to come with a number. Whenever a country
is selling their gold bar it is a problem.
Too much politic with gold and Gold is more like a confidence factor than a store of value.
Gold is a bottleneck, only a few will own a lot of gold.
It will make no sense right now for you and I to go invest in real gold unless we are filthy rich.
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BEER.Here in Venezuela it is complex because of the hyperinflation that leads us to a percentage sometimes higher than 1000% in a few months it is difficult to get out but thank GOD we now have cryptocurrencies that help us to solve a little our serious economic situation.
At least it is wide open for you guys to use it.
Make the best case for you all.
as long as the government does not try to control, we will be calm but they are clever and will look for some opportunity to try to control them
Very interesting way to measure inflation. I guess it’s another Gold Standard :)
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Gold should rise in face
of inflation. It is the other way around.
In that case Gold is over priced.
Trying to add all pieces together
Gold may never rise since many states
hoarded a lot of it to disrupt the dollar.
Nobody knows the real amount of Gold bars
in the world.
While BTC is moving sideways the minute
it is reaching $100k, Gold will lose some
of its lusters.
Again it is all numbers game from there.
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