It is always a wise decision to diversify your investments to spread the risks, but you should always keep in mind the speed of liquefaction of one commodity to another. Because of the changing economic and geopolitical changes that take place almost daily in the world, you want to do it without severe penalties. All financial markets, including commodities, are interconnected in one way or another.
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If you understand well enough what is happening with the world’s national debt, experts are asking when interest rates will rise due to the severe decline in the last six years. This is happening among the growing debts of countries around the world, including the United States. The US Federal Reserve is also constantly increasing the money supply to the world. For example, China throws Chinese treasures (US debt) into the world market. The expected outlook for hyperinflation is for western countries and the rest of the world due to excessive supply of currency and debt.
Currency is a store of value that is a means of exchanging goods and services. Some should always be at hand. Keeping a precious metal like gold does not pay dividends as a share, but is a protection against a declining currency like the dollar. With paper or fiat currencies, more uncertainty in the financial world is becoming a more reliable haven to turn into precious metals. There are two types of how precious metals are obtained: paper certificates and physical storage or storage. Prices are manipulated by the sale of paper certificates to the point where more than 250 people think they own the same ounce of gold and think that number is increasing daily. Physical capture will be king when physical supplies dwindle due to increasing demand for the present and the future. The day will come when paper certificates will become worthless because nothing supports it.
The dollar has depreciated against gold since then due to increased supply and the accumulation of debt created by the US Federal Reserve since its inception in 1913. How much could a dollar of gold buy you in 1913, and your purchasing power fell by about 4 cents. The dollar bill in your banknote is about 25 times less than your grandfather’s in 1913. The dollar is a medium of exchange for all goods and services, but it is a price in the last century associated with central banks. If many of you can remember what you could buy for $ 20.00 in a grocery store 30 years ago and what you can buy with it now, you can see the difference. What can be manipulated, but precious metals are a measure of what happens over time. To add even more insult to the dollar, back in 1971, as part of what is now called the Nixon Shock, was the abolition of the direct conversion of the US currency into gold. This means that the dollar has formed a “floating” Fiat currency, which is tied to gold and has no support next to gold. These are other currencies of other nations, which are also linked to the US dollar. The value in Fiat money is only the face value in laws and regulations. The age of commodity money ended in 1971 with the US dollar.
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From the day this article was written, Gold was more than $ 1,100 in 1913, not a dollar. Fear has always been a factor in raising the price of gold, and it decreases when the cause of fear disappears in the past, but in a bankrupt world it may take some time to rebuild after a world war, regional collapse, or local catastrophe, or to return to our parents’ standards. can take more than a lifetime. There is no comparison in the history of the world to the magnitude of the financial problems that will occur in the near future, and many help to strike as long as possible. The tools that allow this to happen every day are getting weaker in the coming days and months. They will not be an external force or superpower that can save the world from this great catastrophe this time. No one knows the day or the hour, but many are amazed at the worldly debt that Babel has accumulated and built as a financial tower. I don’t think we’ll ever see it and see it built for the rest of our lives.