Why The Price Of Gold And Silver Is Rising?
- 2 years ago
Why The Price Of Gold And Silver Is Rising?
In 1971, President Nixon severed the U.S. dollar’s ties with the gold system.
The U.S. treasury was running out of gold as more and more people were exchanging their U.S. dollars back to gold. People were starting to lose confidence in the U.S. dollar and more and more people were emptying the gold reserve.
In an act of desperation, President Nixon severed the gold standard thus enabling the U.S. to continually print money - they were effectively creating their own debt and generating as much debt as they wanted in the form of currency.
Over the years, the U.S. dollar started dropping and the price of goods started to go up. Now why is that? It is because the U.S. dollar is continually losing its value to the point that compared to 40 years ago, the U.S. dollar is only worth a fraction of what it used to be.
Because currency starts to lose its value, especially with the whole world’s currencies ‘hedged’ against the U.S. dollar, the price of gold and silver starts rising at an astronomical rate.
The demand for gold and silver starts increasing and the increased demand for it spikes up the price even more.
In our next video we will look at the advantages and disadvantages of investing in gold and silver.
In 1971, President Nixon severed the U.S. dollar’s ties with the gold system.
The U.S. treasury was running out of gold as more and more people were exchanging their U.S. dollars back to gold. People were starting to lose confidence in the U.S. dollar and more and more people were emptying the gold reserve.
In an act of desperation, President Nixon severed the gold standard thus enabling the U.S. to continually print money - they were effectively creating their own debt and generating as much debt as they wanted in the form of currency.
Over the years, the U.S. dollar started dropping and the price of goods started to go up. Now why is that? It is because the U.S. dollar is continually losing its value to the point that compared to 40 years ago, the U.S. dollar is only worth a fraction of what it used to be.
Because currency starts to lose its value, especially with the whole world’s currencies ‘hedged’ against the U.S. dollar, the price of gold and silver starts rising at an astronomical rate.
The demand for gold and silver starts increasing and the increased demand for it spikes up the price even more.
In our next video we will look at the advantages and disadvantages of investing in gold and silver.