A current headline says “fears of currency debasement drive gold price higher”. Seems reasonable; and it is. It is also reasonable, however, that a potential end of inflation is near.
Historically, governments have been “debasing” their currencies for centuries. The debasement leads to a loss of purchasing power in the currency in use.
Since gold is original money and has proven itself to be a true store of value, then it should not be unexpected that gold’s higher price over time reflects that currency debasement.
The debasement leads to a loss of purchasing power in the currency in use.
All currencies are substitutes for ‘real money’, i.e., gold; and all governments inflate and destroy their own currencies.