Is the Price of Gold Really Going Up?

Is the Price of Gold Really Going Up?

Since 2005, the price of gold is going up and up. Since 2007, the price of gold has been doubled and hitting the new heights. Most of the people say that, it is the price of the gold that is going up.

But well, Have you ever think according to the point of economy that, Is it really the price of gold which is going up and up or it is the value of money that is going down day by day?

Well, the reality is that, it is not the price of the gold which is going up and up day by day but it is the price of the money which is going down day by day because of the inflation from all around the world?

So why the price of the money in your pocket is going down day by day?

Well, it is because the US Government is printing literally billions and trillions of dollars since 2007 out of thin air and pushing this money into the circulation. And this newly printed money is diluting the purchasing power of the existing dollars in the economy and that’s why now the more money is in the circulation to chase the same amount of goods and services and that’s why now you can buy the same amount of goods and services in the economy from more money.

Can’t understand? Well, let me explain you by telling you one example. Just think for a while that there is one island in the world on which nothing except 5 gold coins and 5 dollars and few people. So How much one gold coin costs? Well, $ 1 per gold coin right?

Ok. Now after few years the island people print more 5 dollars and push it into the circulation. So now the island has 10 dollars in the circulation and 5 gold coins and few people. So how much one gold coin costs? Well, of course $ 2 per gold coin.

And people of that island think that the price of the gold coin goes up. But well, it is not the price of the gold coin that is going up but actually it is the price of the money (dollars) that is going down.

The same thing is happening in our world economy right now at very large scale. The Central banks and governments from all around the world are printing money out of thin air like hell and this newly printed money is diluting the purchasing power of your money in your pocket, bank savings accounts and bank fixed deposits.

And because of this the people who are living on the fixed income and retirement plans will be most affected. So How to become rich and maintain your purchasing power in such kind of economic environment? Well, recently I have published my new eBook – My Journey To Billionaire Club: What Rich Teach their kids about Money that Poor & Middle Class Don’t?

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