Should You Buy Gold While Consumer Price Inflation Is Running Rampant and Threats of Normalized Interest Rates? It depends on what you’re purchasing Gold for(The Risk of Buying Gold) – April 2, 2022,
This term MONEY PRINTING gets thrown around recklessly. Money printing is partially true, and it’s true in the long term if there are clear signs that Developed nations do not have the ability to pay back their debts. But the confidence of fiat dollars, currently resides in the BELIEF that our current fiat dollar standard revolves around money being linked to DEBT!
Capitalism is inherently DEFLATION, innovations that make humanity more productive lead to your MONEY having more value. Now, because humans with more purchasing power, threaten the power of politicians, the story politicians want humans to believe is that the government is responsible for prosperity? For the average human, they believe this to be true.
As an example, SOME Black Americans want reparations, and one of the reasons they want this is because they imagine the U.S government which is TRILLIONS of dollars in debt, is RICH. Now, reparations haven’t exactly helped Native or First Nations people in America, in fact, it’s assisted many of these people having substance abuse problems, because the lack of understanding of money will actually fuel you to make bad investment decisions.
A lot of “White” people have seen their generational wealth disappear in one generation, because, they didn’t know how to hang onto the wealth they inherited, a large chunk of the homeless in North America are White people. People without financial education are destined to go broke or have serious mental health issues.
This is why many of us in the liberty movement see welfare as a bad thing, welfare for individuals or corporations leads to malinvestments. This brings me to why you’re buying gold, if you’re buying gold to make a quick buck, I think you’re making a mistake. Currently, Cryptocurrencies have proven far superior for SPECULATIVE investments. Gold on the other hand is best use as INSURANCE in case this fiat monetary system fails.
I personally do not like it when people who are gold promote gold as this savior of humanity. I’ve said it before and I’ll say it again, democaracy as it’s structured today and a gold standard are not compatible.
I do not not under any circumstance want a GOVERNMENT gold standard. Now, I would like their to be a private sector gold standard. If Bitcoin can be private money gold can be private money, but governemnts don’t want to allow believers in a private sector gold standard to be able to compete with fiat currencies because gold has to much history and once a few private sector gold standards rise to the top, most humans with half a brain will switch over.
Now, if forced to transact in fiat money, I’d do day to day transactions in fiat money, but chances are if I’m making large purchases or looking to save money I can also do commercial transactions in, most people will use a gold currency.
With that said, I’m not entirely sure the gold markets are being manipulated, I think they are, but I also have to admit, that I don’t do much selling of gold, I do buy, but not much selling, I do save fiat U.S dollars, not because I see it as something worth saving, but because it’s CURRENTLY accepted everywhere.
Nobody cares if I talk down the U.S dollar, the U.S dollar as of this date has a lot of confidence in the marketplace, why? Because most people imagine that the U.S will not default on its debts. As a matter of fact, even if the U.S defaulted on its debts, it’s not a guarantee that on the forex markets, the U.S dollar wouldn’t rally, why? Because like it or not, the U.S dollar offers the most DECENTRALIZATION.
It might sound strange, but a lot of people like that PHYSICAL U.S dollars are used by criminals, why? Because it keeps demand for the U.S dollar high. People like privacy and currently the U.S dollars like gold provides privacy. Bitcoin on the other hand, doesn’t provide much privacy. It’s traded on a public ledger. Digital assets in general don’t provide much privacy and it’s why they’re viewed differently
Even if gold went digital, what would make people believe in it would be their ability to cash out of the gold digital platform ANYTIME they wanted to.
PRIVATE gold could even be in a paper money format, I bring this up, because gold is not something you should speculate on it’s something that use for insurance, in case the fiat monetary system crashes. When or if the monetary system crashes, it won’t take long before people start trading in Gold and Silver. There is 5000 years of history that will show how to price things in Gold and Silver.
Now, where the problems of a Gold and Silver come into play is the GOVERNMENT. You see the crytonite of Gold and Silver is BIG GOVERNEMNT, who will feel like they should tax their citizens to “maintain order.”
Ofcourse governments are full of B.S, but the average individual will buy into this nonsense and this is why you as an individual a free thinker have to make decisions that make the most sense to you, based on the circumstances.
Interesting times ahead!