At first about gold – The record rise in the price of gold meant a wave of inflation. Will the first one be stronger?

Gold price market one record after another. Two years ago, it reached the psychological threshold of two thousand dollars per troy ounce, and economists predict that it will not get below it anytime soon. If ever at all. What is behind the extreme increase in the price of the base metal? And for its growth, did he predict a wave of inflation?

Inflation can be kept under control even if the economy slips into recession. In general, the World Central Bank congratulates itself, calm down and announces the future dream of annual rates. Ekonom’s bag didn’t fit on top of them. And according to them, even the people of the world of economics know that it is only a matter of peace before the storm. The cloud of inflation has undoubtedly eased, but not during the covid pandemic. The main reason is the astronomical indebtedness of the United States, the national debt of the USA passed the 34 trillion US dollar mark at the end of this year. Bloomberg Economics researched about a million options for the budget of the United States policy. The results of roughly eighty-eight percent of the simulations showed that the debt will continue to grow, such debt is unsustainable. Not only as a result of the American debt, the threat of the return of inflation is in the air, it was not the case after covid, explained Roman Pilek, economist and co-founder of Zlat rezervy.

According to economists, this kind of wave of inflation is inevitable. According to them, the current situation on the gold market is an indicator that the world economy is not standing up to the times. The fact that its price breaks one record after another is not without reason. Precious metals such as gold and gold are considered a safe bet in times of political, economic and social crisis, gold has the ability to predict economic events. A similar situation in which we find ourselves now was experienced by the fallen countries in the 1970s, when in 1973 and 1974 there were waves of inflation, which were quickly suppressed. Many thought at the time that the worst was behind them, but inflation struck again in 1978 and 1980 and reached 13.5 percent in the US. The price of gold in the 20th century predicted a second wave, because after the consolidation period from 1976 it rose again.” said Roman Pilek.

The event when the increase in the price of gold led to an economic boom has happened several times throughout history, for example, in 2001, after the flow of the American Double, the price of gold rose from 250 US dollars to 1,900 in 10 years. Another example is the year 2019, when the price of gold began to rise, which foreshadowed high inflation, which gained momentum from the middle of 2020 and peaked at the end of 2022. The current rise in the price of gold means that not only the world’s central banks the wave of inflation is just ahead, mn Roman Pilek.

Another situation that will affect inflation is the economic flow from the West to the East. There are several problems facing the current fallen country. It is a fact that the leader is only beginning to cope with the huge increase in defense spending and the debt of the fallen countries is growing. Military spending in the West will drive up inflation and the price of gold in five decades. To which the East responds very flexibly by replacing the reserve dollar with gold. It is only a difficult time when the United States has fallen from the first place in the share of gold, and so the full moon has taken a step on the long road to replacing the reserve dollar with a new one. concluded Roman Pilek.

Roman Pilek jis the co-founder and chief economist of the company Zlat rezervy. Its main mission is to publish business, economic analyzes and comments on the company’s portal. I am in charge of the company’s business strategy and cooperation with business partners. He is a graduate of Tom Bata University in Zln, where during his studies he was intensively involved in the issue of stock and commodity markets. According to him, he graduated from the political science study program with a minor in political economy at the CEVRO Institute in Prague. I have many years of experience in the field of finance and banking.

Fellowship GOLD RESERVES s.r.o. is a trading company engaged in the sale and purchase of physical investment gold and silver in the form of special bars and coins since 2010. Physical investment gold and silver is a commodity by its very nature, its price is influenced by developments on world markets, the holder of such a commodity is therefore exposed to the risk of loss . The company provides services associated with the purchase of investment gold and silver for the same price as when selling. He is well aware of the fact that every gold and silver digger will sooner or later need to convert his investment into cash. The company ZLAT REZERVY s.r.o. provides a contractual guarantee that it will buy back the investment gold and silver from its customer at any time.