The gold standard broke fifty years ago: the fiat dollar is hitting milestones

• Eurasia Review: The gold standard was a pillar of the dollar
• MoneyWeek: Gold should be twice as valuable – why isn't it?
• FXStreet: Palantir's massive gold purchase surprised Wall Street

Eurasia Review: The Gold Standard Broke and the Fiat Dollar Celebrates Its 50th Anniversary

The President of the United States, Richard Nixon, severed the dollar from the gold standard fifty years ago, simultaneously initiating an era of global fiat currencies and debt economies, writes Daniel Lacalle of the MISES Institute. This decision sparked a massive increase in global borrowing and effectively made the dollar the world's reserve currency: before, any currency and country with a sufficiently large gold reserve could challenge the dollar; now, their smaller global demand keeps them weaker than the dollar and dependent on it. Proponents of abandoning the gold standard argue that floating fiat currencies have made economic crises shorter and easier to resolve. However, the truth may be less rosy: crises have also become more common, and while they are resolved by taking on debt and printing money, the problem merely shifts to future generations. The United States can outsource the imbalance of its currency to the rest of the world, but global economic markets have effectively become debt economies. The debt-driven economic system benefits those who receive money first – states and the wealthy. In this situation, the middle class and the poor must find their own solutions to ensure that real wages grow more slowly than the rising costs of housing, healthcare, and other living expenses. Read  full article in English / 22.8.2021, Daniel Lacalle

MoneyWeek: Money should be worth twice as much - why isn't it?

MoneyWeek's primary gold commentator Dominic Frisby explains why it is still worth accumulating gold in your stock portfolio, even though its price has been declining. The past 12 months have been tough for gold and other precious metals: its value has dropped by 15% to €1,525, and silver has fallen even more. Quantitative easing and money printing have caused commodity prices to soar, and only precious metals have suffered. Gold is a common insurance asset, so a decline in its valuation is generally a sign that other sectors are performing well. Many gold speculators view their growth as false and expect gold stock prices to triple or even quadruple – but inflation that allows for such a rise would certainly cause more problems than benefits. Fifty years ago, President Nixon severed the dollar's gold link because he wanted to finance the Vietnam War. This was supposed to be a temporary measure – just like income tax, quantitative easing, and face masks. Today, many purists see the beginning of bloated government budgets, housing price inflation, and other global issues in this decision. According to Frisby, history shows that fiat currency systems always collapse, so a return to gold is inevitable. And inflation is already in effect: housing price inflation is already in double digits, and material costs are also rising. Frisby advises following gold analyst Ross Norman: his forecasts have been very accurate so far, and he believes in gold bull markets even in the current economic situation. The price of gold is currently lower than it was ten years ago. It is the only investment asset that is so low, and it serves as a hedge against money printing. Read  full article in English / 20.8.2021, Dominic Frisby

FXStreet: Palantir's massive gold purchase surprised Wall Street

Technology company Palantir surprised and puzzled several Wall Street analysts and CNBC commentators by purchasing $50 million worth of gold bars. They made their move in an economic situation where a rising dollar index is pushing markets down and the U.S. Federal Reserve is planning to tighten its expansive monetary policy and limit its monthly purchases. Investors have shifted from the precious metals sector to other areas, as they have become accustomed to following fast-paced markets and making short-term decisions. However, many contrarian investors have seen an opportunity to increase their gold reserves - and the same opportunities have also attracted a number of large investors. Analyst Guy Adami knows why investing in physical gold is worthwhile in the current uncertain and inflation-threatened situation: it is worth noting that Palantir is specifically buying physical gold and not ETF holdings. The purchase can be seen as an attempt to expand beyond the current financial system, as physical holdings are safe from Wall Street and central bank speculation. Experienced investors remember to consider long-term development and accumulate bars gradually with a small margin. In the markets, one can never perfectly seize the right moment, so it is wiser to maintain a core position and grow it regularly. Read  full article in English / 20.8.2021, Mike Gleason