The climbing currency prices of gold and silver are a reflection not of their investment value but of fiat currencies inevitably losing value against real money. From Alasdair Macleod at alasdairmacleod.substack.com:
The 54-year fiat currency era is coming to an end. Even their users will lose faith in them rendering them valueless, which is why valued in gold they are beginning to collapse.
When it is understood that gold’s value is relatively stable over time, and that it is the value of currencies which change, it becomes obvious that the “price” of gold is irrelevant. It is the changing value of a currency that matters. And a decline in a currency’s value, largely due to loss of faith in it is reflected in higher prices for gold, and all non-monetary goods.
The causes of rising prices are poorly understood. Modern economic theories are badly disingenuous in this respect, leading to an almost total lack of awareness about the economic and monetary dangers we face, even among economists.
These dreadful errors are now hastening the demise of today’s fiat currency system.
A little theory
Carl Menger in the 1870s was the first economist to properly explain the subjective price theory with which we are familiar with today. Put simply, in any transaction there is a subjective and objective value.
The goods or services being exchanged are the subject of negotiation between buyer and seller: in other words, their value is a matter of opinion or is the subjective element in a transaction. Meanwhile, the currency in which they are priced is seen to have the same value by both buyer and seller — that’s the objective value.
It can only be this way. After all, to be the objective value is the function of a medium of exchange. But it colours our view. When we see prices rising, we naturally think that goods and services are getting more expensive, because in transactions they are always subjective. It doesn’t occur to us that it is the currency losing value as a medium of exchange. The error is not confined to the man in the street; it is also common to economists who invariably describe inflation as a rise in prices, not a debasement of the currency.
The COV-LARP printing press and free money for 404 are two main causes?
I love those price comparison charts of grocery staples from 2020 to now and everything at the dollar store is now almost $1.50 as taking care of Ukraine and career lifetime bureaucrats ain’t cheap.
The system isn’t rated too big to fail and your terms are acceptable.