Opinion Pieces

Issue #3- Aatmik Tambol (Opinion 4)

It was less detailed, but clearly explained the effects of rising gold prices in an economic perspective. Congratulations!

Gold inflation’s horrible as it’s a sign of a failing economy. As everyone knows, most if not all economies has a cash/bill system, based on a gold standard. The price of gold will only increase based on the governments decisions and actions. Such things would be: printing more paper bills, gold mines depleting or going to war/conflict with some legal entity or government. However some are external factors which governments aren’t in full control of, such as another country sitting on gold mines closing its market/embargoing said government.

This is a miserable situation to be in for the average person, as most of the world’s population only holds onto cash and not something fixed in value like gold or rare Earth metals. Only protecting, not profiting those who holds onto gold or REM. 

Gold inflation is bad for cash savers so most in general. It’s good for those who already owns gold as they can protect themselves from inflation in existing economies. However, it’s bad those who want to buy gold items for themselves or loved ones.

In addition to gold inflation. I believe gold should be worthless, but humans in their materialistic ways like things that are shiny and tangible. We also have a desire to be unique and make worthless metal; with no proper use, become a a valuable commodity, turning said metal into a full industry along with diamonds. 

It’s not good for the average person as gold can be hoarded by the rich and by doing so can lead to an artificial demand for more. This demand will increase the price of gold, and will make it further out of reach for those wanting to buy gold to protect themselves from inflation. 

It’s a bad situation because every country buys gold as a backup, in case their currency crashes. If the gold price keeps increasing, it can eventually face a price correction and lead to losses and economic crisis.