{"id":67526,"date":"2024-04-24T11:26:53","date_gmt":"2024-04-24T16:26:53","guid":{"rendered":"https:\/\/olduvai.ca\/?p=67526"},"modified":"2024-04-24T11:26:53","modified_gmt":"2024-04-24T16:26:53","slug":"what-the-rising-gold-price-signals","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=67526","title":{"rendered":"What the Rising Gold Price\u00a0Signals"},"content":{"rendered":"
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What the Rising Gold Price\u00a0Signals<\/a><\/h3>\n<\/header>\n
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The recent run-up in the gold price has not garnered the attention among the mainstream financial media outlets as it should.\u00a0 Gold has, in part, been overshadowed by the rise in the price of bitcoin and other cryptocurrencies.<\/p>\n

Naturally, the financial press, which is really an arm of the government and its central bank, wants to ignore, as much as possible, references to gold as protection against the continuing increase in the price level which itself has been deliberately understated by monetary officials.\u00a0 The media and government understand that precious metals are the ultimate security against runaway inflation and economic collapse.<\/p>\n

While the increase in the gold price has reached nominal highs, it and the price of silver have not passed their all-time 1980 highs in real terms.\u00a0 Adjusted for inflation, gold would have to rise to about $3590 an ounce while silver would have to surpass $50 an ounce.\u00a0 Both are poised to exceed these watermarks in the not-too-distant future.<\/p>\n

Precious metals will continue to escalate unless the Federal Reserve radically changes its interest rate policy to combat inflation as former Fed Chairman Paul Volcker once did.\u00a0 Volcker raised interest rates to double-digit levels which caused gold prices to fall.\u00a0 While Volcker could get away with such actions (because, at the time, the U.S. was still a creditor nation), current Chair Jerome Powell cannot because of the enormity of public and private debt.\u00a0 Double-digit interest rates would collapse the economy and plunge millions of Americans into bankruptcy.<\/p>\n

The rising price of gold is anticipating some of the promised policy actions of the Fed.\u00a0 Since the end of last year, the central bank has indicated that it would be cutting interest rates.\u00a0 In addition, Powell is considering ending the Fed\u2019s \u201cQuantitative Tightening\u201d (QT) program.\u00a0 Both are highly inflationary.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

What the Rising Gold Price\u00a0Signals The recent run-up in the gold price has not garnered the attention among the mainstream financial media outlets as it should.\u00a0 Gold has, in part, been overshadowed by the rise in the price of bitcoin and other cryptocurrencies. Naturally, the financial press, which is really an arm of the government […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[18793,303,309,374,3622,431,16888,534,647,13351,3650],"class_list":["post-67526","post","type-post","status-publish","format-standard","hentry","category-economics","tag-antonio-aquinas","tag-fed","tag-fiat-currency","tag-gold","tag-gold-price","tag-interest-rates","tag-jerome-powell","tag-monetary-policy","tag-precious-metals","tag-price-inflation","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67526","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=67526"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67526\/revisions"}],"predecessor-version":[{"id":67527,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/67526\/revisions\/67527"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=67526"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=67526"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=67526"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}