The world economy is no doubt being staunchly affected by what is happening in the United States, and with that being said it’s surprising that more folks don’t understand why the metals markets fluctuate daily.
I am going to share with you why the price of gold is so high, and why many people still don’t understand that gold is a currency.
Overview of the World Economy
It’s no secret that the world economy means the national economies, and in some some cases it may depend on the currency being discussed. It’s interesting that in times past, what would have made up the world economy was its natural resources.
This is interesting because now it’s as if we have decided we want to use what is in the Earth to get to our fullest potential.
See, metals are naturally occurring elements that come out of the ground, and with that being said, gold is one of them. Yes, gold can still be mined, so it only makes sense that it’s still within reach and easy to get your hands on right?
This is why gold will continue to go up in price, as the value of the US dollar goes down. Now that I have shed some light on why this is so, it makes more sense, right?
The State of the World Economy
While it’s true that we often associate human activity with the world economy, it isn’t solely based on what humans are doing. What it all boils down to is looking at several small local economies, and looking at them collectively to see how they affect the world. Make sense?
This would be the same as evaluating a school’s students individually, to see the overall test scores of the school as whole, and how they measure up versus other school systems. This is a great example of a local economy versus the world economy.
You might also want to consider purchasing power. Who has strong purchasing power these days? The only fair way to look at this is to look at everyone’s purchasing power to find out how strong we are as a nation. Some State offices are going broke, and that is why cities are being researched in how they spend their money and so forth.
How We Can Now Rate the World Economy
Did you know that in 2011, the United States still had one of the strongest economies in the world? This was along with France, Italy, Brazil, United Kingdom, Germany, China, and Japan. Interesting huh? While many assume that the United States was on its last leg, it simply wasn’t and isn’t today. We should know better.
The United States will always be one of the strongest economies, and gold is a universal currency that we can spend anywhere. That means that as long as we can mine it, we will be able to trade with others anywhere for anything.
Do you want to learn more about buying gold and how this will all work out in modern times? If so, then CLICK HERE now to get more information on gold and the world economy.