The fairy tale of the rising gold price
- admin474127
- Mar 27
- 3 min read
Once upon a time, there was a government that deliberately withheld information in order to keep its people in a seemingly golden cage. The fairytale stories that are presented to us every day in the established media on various topics must begin something like this.
One of these fairy tales revolves around the rising price of gold and that is exactly what this article is about. In a country that is far, far away in fairy tales and yet frighteningly close in reality, the connection between gold and currency developments has remained truly unrecognized or has been deliberately concealed.
Let's start by looking at the development of the gold price over the last 20 years:
Let us now compare the curve with the increase in the money supply:
The gold price is widely discussed as a largely independent factor in relation to the rising money supply. This allows price fluctuations to be presented as a fundamentally inherent risk of gold, in contrast to bank products.
This, let us call it a subjective view, gives rise to another aspect of the appearance of a rising gold price: Nominal income and returns from propagandized and in some cases allegedly government-sponsored investments, do not run parallel to the currency decline and do not have an offsetting effect. This leads to a real loss of purchasing power and thus to additional expenditure when buying gold and almost all other goods. This reinforces the impression of rising prices, although in reality it is a matter of falling purchasing power. However, this only affects those who are not already invested in gold as a store of value.
Ultimately, this impression and the media portrayal only reveal the following economic grievances:
Rising money supply
The associated increase in national debt
Depreciation of money and thus decreasing purchasing power
Falling real incomes
Deliberately misguided investments for citizens
The result: an inexorably increasing impoverishment of the population, growing dependency and thus more power and control of the state over the individual.
In reality, it is precisely these aspects of power and control that are at stake. All this only serves to keep an ailing planned economy system artificially alive.
Why can the state still “afford” this?
Because it can access citizens' money at any time through prescribed laws that are essentially invalid. At the same time, the state is partially reducing its debt through the creeping devaluation of money without paying a cent itself.
Conclusion
The rising money supply and the associated inflation are the real causes of the economic problems, not the allegedly rising gold price. The state uses these mechanisms to maintain control and prop up the ailing financial system.
Gold preserves your purchasing power because it cannot be multiplied at will. This is one of the main reasons why gold is an excellent way for central banks as well as investors and private individuals to hedge currency against a decline in value and loss of purchasing power.
For the global financial markets, gold is one of the most important indicators for assessing the state of the global financial system. In times of economic uncertainty, it has proven itself over the centuries as a stable store of value and a reliable means of asset protection, but also for building up wealth, e.g. through a savings plan.
We at via bonum are happy to advise you when it comes to investing in gold and other precious metals in a diversified manner. Our expertise will help you to make the right decisions and optimally secure your financial environment and use it to increase your wealth.
Key facts summarized:
Gold price does not rise randomly - The rise in the price of gold is often portrayed as random, although it is closely linked to the rising money supply.
Loss of value of money as the actual cause - It is not the price of gold that is rising, but the purchasing power of money that is falling. This makes not only gold but all goods more expensive. In short: you need more money that has become worthless.
Media misinterpretation - the media present the price of gold as volatile and risky in order to make banking products appear more attractive.
Economic grievances as the main problem
- Constantly increasing money supply and national debt
- Falling purchasing power due to inflation
- Real incomes that do not keep pace with the loss in value of money
- Targeted misdirection of investments to keep citizens away from real, true values
- Growing dependence of citizens and greater state control
State power protection - the state keeps the system running artificially through currency devaluation, thereby reducing its own debt and accessing citizens' assets.