Mainstream financial media loves pushing the narrative that gold is not an inflation hedge. When it comes to gold and inflation, if I ran a news agency, there would be two steadfast rules that would apply to all journalists that wrote about these topics that worked for my company. Study and understand inflation and gold and if you make either of these two mistakes in writing articles about these topics, you will be fired and never receive a corporate recommendation from us in securing another job elsewhere:
- Figure out what real inflation is in this nation and never use the fake “official” government/banker/oligarch released number. The real annual inflation rates are always multiples of the “official” released one and if you can’t figure out how to calculate it on your own, then take a course in critical thinking.
- Always use the physical price of gold when speaking about gold in any manner, whether it is in percentage yield or fiat currency price rises and falls. If you ever reference gold using changes in prices of paper, derivative and synthetic gold you are deliberately misleading people. Secondly, never reference any fiat currency price as gold’s value. Learn what gold’s real value is and use this metric only when discussing gold’s value.
Because 100% of financial puppets that work for mainstream financial news violate the above two rules 100% of the time, you should realize that there is less than zero value ever reading another article they write or viewing another financial news show in which they provide analysis. In this article I published on my news site, I explain why the failure to adhere to the above standards results in massive propaganda and misinformation campaigns being waged against gold, including their favorite narratives that gold is not an inflation hedge and gold is a barbarous relic.
With massive annual inflation raging in America well over 13% at the current time, and due to criminal bullion bankers that massively manipulate, synthetic paper gold prices lower in derivatives markets, this is why no one should ever focus on fiat currency prices as the sole determinant of gold’s “performance” to serve as an inflation hedge during periods of real raging inflation. Comparing paper, synthetically manipulated gold prices with “official” banker/government stated rates of inflation and trying to determine its meaning is like comparing five paintings of oranges with three prints from a famous anime movie and determining which is worth more. If you like paintings of fruit then you would pick the paintings. But if you are an anime fan, maybe you pick the anime prints. There is no sense in making this comparison because one’s opinion will decide the debate. Likewise in gold markets, since synthetically set gold prices have no immutable value and “official” inflation rates are always fake, comparing the value of holding gold during fake rates of inflation literally has no value when building a wealth preservation strategy.
Currently, bullion bankers have worked overtime in gold (and silver) derivative markets in New York to ensure that rising gold prices do not reveal the degree of deception in their “official” annual inflation rates (as suppressed synthetic gold prices also suppress physical gold prices, though not to the same degree). Sometimes, I’m still astounded at how easily bankers pull off this global deception, as it is so transparent that less than 1% of all people worldwide should ever fall for the deception.
If you were a woman, and a 160cm, 159kg man told you on a dating app that he was fit, exercised daily, 185cm tall and 79kg, perhaps he would be able to fool you as long as he kept posting photos of someone that fit the lies of his description. However, the moment this obesely overweight, short man finally appeared in person to go out on a date with you, the veil of illusion would immediately splinter into a thousand pieces. Though all the prices of daily living, including food, electricity, petrol, housing and clothing have soared multiple times 5% in the past rolling twelve months, millions of Americans continue to discuss these figures as if they are real. These millions of Americans that continue to be fooled by such lies of the oligarchs, are like the woman that finally met the man of his dreams, saw with her two eyes that he was 160cm and 159kg, and the minute he reaffirmed the lie to her that he was 185cm and 79kg, would tell the man that she couldn’t believe she found the man of her dreams on a dating app.
Likewise, even though a 1-ounce silver American eagle is listed on two of the most popular US bullion dealer sites respectively at $1,899 to $1,916 and $30.21 to $35.88, the people that regularly consume mainstream financial news about gold and silver would take the current synthetic gold and silver spot prices of $1,781 and $23.89, go their local dealers ready to buy gold and silver at bargain basement prices, and scream at the top of their lungs when not offered them, that dealers were devil bankers for charging outrageously high prices. About a year ago, 1-ounce gold coins, depending on what national coin you purchased, were selling in the range of $2,030 to $2,050. So for the past year, even physical gold has not served as a good hedge against real inflation rates around the world in developed nations (though it has in many emerging markets in which emergency market fiat currency purchasing power has plummeted in the past year).
So, what about bitcoin as an inflation hedge? Over the past year, as I write this sentence, BTC, in US dollars, is up roughly 279%, so as in inflation hedge, it has crushed gold over the past year. However, the very characteristic that enabled bitcoin to murder inflation over the past rolling twelve-months is also unfortunately the characteristic that invalidates it as sound money and as a store of wealth – its frequent episodes of enormous price volatility, not only to the upside, as has largely been the case for the last twelve months, but also to frequently to the downside as well. In fact, as I’ve accurately predicted both enormous spikes of bitcoin prices to the upside as well as to the downside in the last twelve months, you may join us on our patreon platform if you would like to receive updates of my predictions for how much longer this current BTC price spike will last.
I have always preferred the slow but steady growth rate with an enormous dose of patience for the occasional huge spikes in price that gold and silver investing offer over the get rich or get poor quick (2018) machinations of cryptocurrencies. I have even predicted that 3-4 months out from the time of my given prediction when Million Coin (MM) was trading in the $80 to $90 a coin, that MM would return to $1 a coin, because I believed MM’s price explosion, immediately after its launch, was entirely based upon the naivete and inexperience of cryptocurrency investors. Even now, with its recent spike from price in the $20s back to $55 a coin as I type this sentence, I’m still sticking with my prediction. Of course, since none of us have crystal balls, all predictions are simply based upon our assessment of the factors most responsible for price behavior and the continued existence or absence of these factors in the future. With cryptocurrencies, whether MM, ETH, BTC or other garbage coins like Titan, I have always maintained that the biggest owners have too much power and ability to manipulate prices and this provides massive opportunities for the largest whales in each of these cryptocurrency markets to profit enormously at the expense of every other owner of that particular cryptocurrency. This is an equation with which I am simply uncomfortable as someone averse to taking huge risks.
Perhaps, the fact that if my two qualifications for reporting on gold and inflation would result in 100% of mainstream financial networks having to fire 100% of their financial reporters that cover gold and inflation in their reporting is just a commentary on the completely broken-down status of business curricula in every business school in every nation on planet Earth.
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