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INFLATION IN THE EYES OF GOLD

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@pouchon
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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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Posted Using LeoFinance Beta