Inflation & The Falling Dollar | The Gold Standard #2109

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Inflation is a decrease in your dollar’s purchasing power. You may have noticed that everyday items are costing more and more. As Ken Russo, senior VP of the Midas Gold Group points out in this episode, the inflation rate is at a 29-year high. While the actual #inflation rate might change, prices won’t be going down. Another way to look at it is the value of the US dollar is declining. One thing is sure, the value of the currency diminishes as time passes. It’s been that way since the early 20th century. For example, a dollar in 1913 had the same buying power as $26 in 2020. Think of the candy bar that cost 5 or 10 cents in the early 1960s and now costs 1 dollar.

A weaker #dollar at home means a weaker dollar abroad. Inflation also increases prices on imported goods, which contributes to inflation.

Commodities, in general, have an inverse relationship with the value of the dollar. As the dollar value falls, the dollar-denominated prices of commodities must rise to reflect their unchanged intrinsic value. Correspondingly, in an inflationary environment, #gold and #silver values will continue to grow.

Severe monetary disruptions will continue to occur in the months and years ahead. This episode suggests actions you can take immediately to protect your buying power.

What Causes Inflation?

Many factors cause inflation. The main idea is that ever since the gold standard was abandoned, currency ceased having actual worth. The US dollar only has value because the government, and its citizens, agree that it has value. The citizens believe in the government because they have confidence, well, for the most part, in the government. It is fiat money.

There is plenty of ongoing uncertainty in the world. The US economy continues to tumble, and the continuous printing of money will ensure the US dollar gets weaker and weaker.

What Can You Do to Offset the Effects of Inflation?

Having too much cash is a risk to individual finances. If you have more than six months’ worth of expenses, you are putting yourself at risk.

The US dollar was first linked to gold in 1792. President Nixon cut the umbilical cord in 1971. Between those two events, there had been disruptions due to wars and the Great Depression, but the dollar’s ultimate value was tied to the stability of gold. It was a system of fixed weight and measures. It helped maintain the value of the dollar. Money is a measure of value and works best when that value is stable. Gold keeps its intrinsic value better than anything else, and it has done so for 3,000 years.

Gold serves as a kind of guideline. Sometimes the spot price of gold wavers because the value of the currency fluctuates. Gold is the perpetual barometer.

Featured Precious Metal Product

One of the oldest and most popular gold bullion coins ever is the 1 oz gold Krugerrand. The gold Krugerrand, minted by the Republic of South Africa, is the first modern government-issued gold bullion coin. It features the four-term President of the South African Republic, Paul Kruger, on the obverse. The reverse has Coert Steynberg’s design of a Springbok Antelope.

It’s no wonder South Africa was the first country to produce a gold bullion coin. The government has the largest gold reserves in the world.

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