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Yes, the national debt can influence gold prices. When the national debt increases, it can create uncertainty and doubt about the stability of the economy, which can lead investors to seek out safe-haven assets like gold.
Gold is often viewed as a hedge against inflation and economic instability because it holds its value even when traditional currencies lose weight. As a result, when investors become worried about the potential for inflation or economic instability due to high national debt levels, they may turn to gold as a safe-haven investment.
However, it’s important to note that many factors can influence gold prices, including global economic conditions, geopolitical events, and supply and demand changes. So while national debt can be one factor that affects gold prices, it’s just one of many variables to consider.
An even better question for all of us to ask is what results from high national debt, and who does the debt affect the most? Secondly, understanding the distorting effect national debt has on the lower middle class and the middle-class taxpayer.
The debt must be paid at all costs, or we will default, causing a major depression. The United States accounts for 13% of global imports, and we account for 15% of the worldwide GDP alone. So our credit worthiness a vital piece of maintaining domestic GDP and growth.
The wealth gap has gotten wider with the ever-growing national debt. Society is eroding from the bottom due to increased government spending. Why? Because the consumers reside in the lower to the upper middle class. As a percentage, they pay more of their income in tax than even the wealthiest. Why is that important? Because the Government does not have money!! Only people have money, and the only place the Government can get money is by taking it from people. It’s a fair argument to say the Government has taken in more money than ever in world history. At the same time, we have record low unemployment, record high homelessness, record-high food insecurity, an increasing number of people dying in the lower classes, record high crime, and record high government spending. When the Government takes money from people, they have less money to take care of themselves. And the result might influence the price of gold. But I worry that Government spending will cause a great depression that will cost us our lifestyles, homes, and security. I pointed out record low unemployment because I’m arguing that government spending comes directly out of the pockets of the working class. This action has resulted in a dramatic decrease in wealth because the working class spends their own money on themselves more efficiently than the Government spends it after they take the money via tax. Moreover, Government spending causes the overall prices of goods to increase.
Gold will go up, but the national debt is a small factor of many. The national debt is a BIG concern because interest payments to service the debt is our third most significant expense behind entitlement spending and Defense spending. The Government is way too big and government employees are a net loss to the economy in terms of GDP and over 10% of the population works for the government and that figure is growing by the day.
Whats your opinion on the national debt? And will the debt cause gold to go up in value?