China's M2 is growing at 8.6% per year. US M2 at 5%. Gold supply grows at 2% and slowing.
That math has only one conclusion.
When the amount of money in the system grows at 8.6% and the supply of the asset you are trying to protect yourself with grows at 2%, the gap between those two numbers is not a coincidence. It is the structural case for gold compounding in value over time.
Add the US, Europe, Japan, and the UK all expanding their money supply simultaneously, and gold production physically cannot keep pace with the money being created.
The minimum annual appreciation gold needs to maintain purchasing power parity is not a price target. It is simple arithmetic: money supply growth minus gold supply growth equals the floor for gold's real appreciation requirement.
Most people hold cash and think they are being conservative. Every year their purchasing power erodes by exactly the rate their government prints money.
Gold does not pay a yield. It does not need to. Its job is to stay scarce while everything else inflates.
Are you holding anything that cannot be printed?
$XAU #加密货币
That math has only one conclusion.
When the amount of money in the system grows at 8.6% and the supply of the asset you are trying to protect yourself with grows at 2%, the gap between those two numbers is not a coincidence. It is the structural case for gold compounding in value over time.
Add the US, Europe, Japan, and the UK all expanding their money supply simultaneously, and gold production physically cannot keep pace with the money being created.
The minimum annual appreciation gold needs to maintain purchasing power parity is not a price target. It is simple arithmetic: money supply growth minus gold supply growth equals the floor for gold's real appreciation requirement.
Most people hold cash and think they are being conservative. Every year their purchasing power erodes by exactly the rate their government prints money.
Gold does not pay a yield. It does not need to. Its job is to stay scarce while everything else inflates.
Are you holding anything that cannot be printed?
$XAU #加密货币