Image via Wikipedia
The price of gold per gram has risen ten years consecutively. It’s taxes the brain to recollect any other commodity that has gone up in price like that for such a sustained period of time. The fact that this is so uncharacteristic of “normal” markets plainly suggests that these are not normal conditions. Since gold is so often used as a safe haven in times of insecurity, the strength of gold for so long a time frame indicates that there is notable weakness in the U.S. Dollar. Indeed, even as gold has continually risen, the dollar has suffered against both other mainline currencies and its previous purchasing power on native soil.
Gold Per Gram Prices Would Probably Be Higher Already
The rising price of gold per gram is even more significant if you consider the evidence for price suppression. As gold serves as a superior form of real money, it competes with the major fiat currencies of the world. Accordingly, there is manipulation of precious metal prices, as rising metal prices suggest a major problem with fiat money. Naked short selling of metal, particularly silver, has contained prices. However, gold is under this type of containment effort chronically. Notwithstanding, it has managed to consistently grind higher against the pressures of the powers that be. Ironically, if anything, this has kept the prices at lower levels longer, which has allowed more people time to catch on and build momentum.
Gold Per Gram Rates Rise As Governments Are Stockpiling Gold, Not U.S. Treasuries
The forecasts all suggests the price of gold per gram will continue to elevate. The U.S. Dollar has become suspect, and it’s place as the world’s reserve currency seems all the more questioned as time passes. It is inevitable that developing nations and exporters of the key building blocks of modern life will begin using other currencies. Indeed, it is thought that Hussein’s problems really began when he contemplated having oil denominated in Euros, rather than Dollars.
In any event, the dying popularity of the U.S. Dollar relates to gold in a rather forthright and direct way. What’s become well known recently is that countries such as China and India have begun stockpiling large quantities of gold. What’s interesting is that these countries are buying huge quantities of gold, and price doesn’t appear to be an issue.
China, as of 2011, actually has a relatively small amount of its nation’s wealth in gold. If the government simply wanted to have a portion of government assets in gold bullion equal to the reserves of most first-world nations, China would have to buy massive, massive quantities of gold. This type of buying pressure on the world’s supplies would alone push prices higher. And this is only amplified as billions of citizens of these nations are being encouraged to purchase buy silver and gold. Some countries are consuming passbook-type proxies like the Public Bank Gold Investment
, but the big surge is for physical metal in hand.
Gold Per Gram Prices In Light Of Likely Debt Default?
Debt levels are literally at incomprehensible levels. Countries have spent themselves into oblivion. Some nations, including the United States, are so debt burdened that a 100% tax rate will not solve the problem. Nations are enduring inflation, currency worthlessness, and mass financial chaos. One need only think about Iceland, Greece, and Zimbabwe and then wonder what’s next.
Debts are so out of hand, even at local government levels, that they cannot be services. It seems default, veritable government-level bankruptcy, is only a matter of time. Printing more funny money is not the answer, as this only cheapens the currency further. Countries are also intentionally devaluing their currencies in an effort to win the export war.
Gold has a way of detecting these fiat currency fiascos and responding. As a currency cheapens, it only stands to reason that gold per gram would rise in price relative to the weakening currency.
Gold Per Gram Price Hikes As Reserve Currency Talks Ensue
We already see a diminished interest in fiat money, as the gold per gram price tirelessly grinds higher. The U.S. Dollar is less appealing to other nations. International trade will be increasingly conducted in other monetary units. The Dollar will be avoided, but who’s next? As the move away from the Dollar suggests, it’s only a matter of time before the next fiat money system is abandoned in favor of something more real. Eventually, it’s not unreasonable to see a commodity such as oil or gold to back currency. There is precedent for gold as money. It’s ultimately worked, behind the scenes, for thousands of years. As we see the gold prices rise continually, it shows it’s working once again. A more forthright confession of gold as money, such as having it back a currency, should send gold per gram prices flying.
