The psychological adamancy which modulates most evaluation of gold leads to confusion and misunderstanding. These and other similar statements are usually encouraged by reams of technical investigation – the very best that money can purchase.
And that is at the top of overall misstatements of fact. It might seem that there’s almost no justification for reduced stone prices except when due to manipulation connected with conspiratorial forces.
Otherwise planet stress, terrorism, natural calamities, social unrest, economic exhaustion, rates of interest, inflation, trade deficits, Indian jewellery need, etc, etc., place a ‘floor’ under the purchase price of gold. This is what we’re told.
Something which needs to be clear from background is that authorities destroy money. That may sound harsh, but it’s true. And once we say “ruin” we mean only that. Inflation is practiced blatantly by authorities and central banks. Its consequences are intense and unpredictable. The Federal Reserve Bank of America has managed to ruin the U.S. buck by bits and pieces over the past century. The outcome is a dollar that’s worth 98 percent less than in 1913 when the Fed started its grand experiment.
The association between gold and the US dollar is comparable to that involving bonds and interest prices. Bonds and interest rates go hargatop.id. Thus do gold and also the U.S. dollar.
If you have bonds, you then understand that if interest rates are climbing, the value of your trades is falling. Somebody does not ’cause’ another. Either outcome is that the true inverse of another.
A falling U.S. dollar means higher gold rates.
To put it differently, higher gold prices are a direct manifestation of a weakening U.S. buck.
And do not confuse the U.S. buck together with the U.S. dollar indicator. The U.S. dollar index(es) don’t tell us anything about the purchase price of gold.
Actual changes in the value of this U.S. dollar appear at the ever-increasing overall level of costs for many products and services – over time.