The US government is telling everybody that inflation is 3.4% per year. That is not correct. Try 14.2% and that’s about right. Source : gold/usd 1 year simple moving average.
The US is saying 3.4% because inflation is based on a consumer price index. It’s not a good metric because it doesn’t account for housing, education, healthcare and most other major expenses.
However, gold is an awful metric for the value of the currency. No single product can be a good metric alone. And gold is famously effected by speculation. People buy gold when the future of the currency seems uncertain.
I might accept the premise that inflation is higher than officially reported, but I don’t accept the relevance of your evidence in support of that premise.
Speculation on the price definitely occurs, which is why I chose to use the one-year simple moving average instead. Measure it from January 1st, 2024, till today, and you see that it’s risen 7.1%. So if inflation keeps up like it has been, and it appears to be, then it would be 14.2% higher by December 31st.
Why do you think gold and inflation are related in any significant way? Nobody buys anything with gold, so I don’t see how it’s relevant.
Because gold is the traditional hedge against inflation. When inflation starts running rampant, people start taking their fiat currencies and trading them for hard assets such as gold.
Hey, I can play this game, too! The real inflation rate is closer to 150%. Source: Bitcoin was $27k last year, now it’s $67k
My source sucks, but so does yours
Buy bitcoin, fuck the govetnmyth