Degussa | Wherever you look: Prices for consumer goods, real estate, stocks and bonds are on the rise. That means that the purchasing power of money is on the decline. For if, say, stock prices go up, your money unit can buy fewer stocks. What it also means is: While people holding assets, whose prices increase, become “richer”, people holding money get “poorer”
The message unanimously churned out by politicians, central bankers, and ‘mainstream’ economists is that central banks are there for the ‘greater good’. However, accoding to a market report from Degussa, “unfortunately, nothing could be further from the truth.”
If and when interest rates keep edging up, the ongoing boom can be expected to come to a shrieking halt, running the severe risk of turning into a bust. From the investor’s viewpoint, gold can be considered a sound currency, as the “ultimate means of payment”.