"Everyone welcomes to listen to Austrian Economic Online, I am the host Boni.

Today I will talk about one of the topics that everyone is most concerned about - gold.

Everyone knows that gold is wealth. The Aegis we use daily is issued based on gold as a standard. It can be said that gold is closely related to our lives, and no one can do without it.

In the past month, gold prices in Vienna's gold trading market rose by 7% and hit a new high in the past two years.

Now connect with Professor Brigitte Foss, an economist, to interpret the impact of rising gold prices for us.”

"Didi..."

Host: "Hello Professor Brigit Foss, can you hear it?"

...

Brigitte Foss: "You can hear it."

Host: "Professor Brigitte Foss, the price of gold has risen recently, and everyone is very concerned about it.

Can you talk about the impact of rising gold prices on the world economy?”

Brigitte Foss: "Okay, host."

"We all know that gold is a precious metal, usually directly as a currency or as a standard, and the price has always been stable, even if there is no fluctuation.

The rise in gold prices in the past month is 7%. It can be said that it is both unexpected and expected.

You may say that my words are contradictory, irrelevant at all, and in fact they are not contradictory at all.

Unexpectedly, it is gold as a currency, and its own value remains unchanged. Under normal circumstances, even if there is fluctuation, it is impossible to rise so much.

However, in addition to being a currency, gold itself is also a commodity. Since it is a commodity, the price is determined by the market, and it is normal to see a short-term increase."

"Putting aside the halo of money, we will analyze the reasons for the price increase of gold as a commodity, and everyone will know.

In the Vienna gold trading market, the rise in gold prices is not an isolated case. At almost the same time, the price of gold in London gold trading market also rose year-on-year.

The direct reason for the rise in gold prices is that two months ago, more than a dozen gold mine giants including South African Mining Group, the UK Daus Gold Group... also announced that they would carry out equipment maintenance and cut gold production capacity.

This decision directly led to a decrease in the amount of gold circulating in the global gold market last month by 20 tons, and the market's supply and demand price will naturally rise.

Equipment maintenance is temporary, and gold mine giants also need to make money, and production capacity will be restored soon.

However, it may not be possible whether gold prices can immediately return to normal levels. With the development of the times, the gold standard has become the mainstream of the times.

In recent years, the world economy has developed rapidly and the demand for money is increasing day by day.

Everyone's demand for gold as standard gold is also increasing day by day. However, the amount of gold mining has not increased simultaneously.

In order to meet the monetary demand in the market, countries have continuously amplified their leverage, and the nominal exchange ratio with gold has not changed, and the risk of increasing currencies has appeared in essence.

The exchange price of gold and multi-national currencies has risen this time, and the standard is the inflation caused by the issuance of many currencies by various countries.

We don’t have to worry about this, the exchange value of SHIELD and gold is still stable.

Here I suggest that if it is not urgently necessary, it is best not to hold a large amount of foreign exchange.

Because no one knows, maybe when the money in your hands will turn into waste paper.

Judging from the current situation, the currencies of many countries in Europe have been substantially depreciated. If the governments of these countries do not stop issuing currencies indiscriminately, it will sooner or later cause disasters."

Host: "Professor Brigitte Foss, you mentioned that some countries have insufficient gold reserves, which leads to inflation.

So how should these countries deal with this situation?”

Brigitte Foss: "The easiest way is to use the new replicate method.

Don’t get me wrong, the new replica method I proposed is not the traditional gold and silver replica system, but a more advanced quadratic replica method.

For most countries, gold cannot be collected in a short while. If you want to maintain the gold standard, what should you do?

After research, I found that using the new replica method can perfectly solve this problem.

Simply put, it is to use international currencies with reliable credit instead of gold and serve as standard gold issuance currency.

This is equivalent to using one piece of gold, acting as a standard gold, issuing two currency, and ensuring normal redemption. This secondary standard method, I call it: the new complex method."

...

I don't know when it started, but Franz also developed the habit of listening to the radio, even though he knew that he was bragging.

The so-called rise in gold prices is actually a blocking battle against the currencies of other countries, Britain and Austria, by artificially operating gold prices.

The so-called gold production capacity is not the final say of the gold mining countries?

In order to increase the competitiveness of their own currencies, Britain and Austria have been controlling gold exports and artificially causing trouble for their competitors.

For gold standard countries, if there is not enough gold reserves, it will be deadly.

The demand for money in the market will not decrease due to insufficient gold reserves. We have to increase the leverage of currency issuance.

This is what Britain and Austria want to see. The higher the leverage, the greater the risk. It cannot be seen in a period of good economic development. Once there is an accident, it will collapse and there is no ability to resist risks.

The fierce struggle between Britain and Austria for currency hegemony does not prevent the two countries from joining forces to jointly control the pricing power of gold and attacking other competitors first.

It can be said that from the beginning, the gold standard was a huge pit set up by the British for countries around the world. This huge pit was still open-minded. Even if we knew there were risks, everyone had to jump into it.

No matter what, gold is still relatively stable. Even if it is manipulated, it is impossible to play too much! If you play too much, it will also affect the interests of Britain and Austria.

It’s not that there are no countries who want to get rid of this huge pit, but they all failed in the end. It turns out that countries that play the silver standard were even more miserable in the end.

In the mid-to-late 19th century, silver has been depreciating, and this fluctuation is much greater than that of gold.

Both Britain and Austria are gold standard countries and will stabilize gold prices for their own interests. The so-called market fluctuations are just obstacles to currencies in other countries.

This range is usually only a few points and will not continue. Generally, the market will return to normal after a few months.

Simply put, as long as governments eat gold, the price of gold will rise immediately. When everyone stops eating gold, many markets will return to normal.

This increase is still targeted. If you buy pounds or ASCHEssentials, there will be no such problem.

If you want to import gold, you are still indispensable. If you hold the ASCHE, the pound can also serve as the standard gold, and the goal can be achieved, leaving the tariffs on buying gold.

In essence, this is a means to promote monetary hegemony, but it is a little more obscure.

...

After listening to a radio, Franz hung up the phone: "Frederick, go and ask what progress has been in radio research and development. This interesting news should be shared with the whole world."

Before the radio was created, there was no way to talk about wireless radio. Now Franz is listening to cable radio, and this technology was born with the birth of telephones.

Simply put, it is to connect many telephone lines together and receive them on the same information source.

This kind of high-end technology is naturally not something that ordinary people can enjoy. If you want to listen to the radio, you need at least one phone number and pay a high broadcast fee.

At present, there are less than twenty cities in the world that have broadcasts, and there are less than 50,000 broadcast users.

Austria is at the forefront of the industrial revolution and broadcasting started relatively early. Currently, Vienna has more than 5,000 paid users, making it the city with the highest broadcast coverage in the world.

This number is approaching its limit. If you want to increase broadcast coverage, unless wireless broadcast is born.

With limited listening crowds, radio programs are naturally not likely to be rich and colorful. In addition to news, there are only popular current affairs comments, occasionally giving a few songs and telling a few jokes, even if it is an entertainment program.

The only benefit is probably that there are no advertisements, not that the broadcaster does not want to charge advertising fees, but mainly because there are too few users and cannot receive a few dollars.

Moreover, the customers we serve now are high-end users, so there is no shortage of money. What everyone wants is high-end services.

Frederick shrugged and replied, "No need for father, I just went to see it yesterday. The progress is very slow, and the transmission distance is still 1,200 yards (about 1,097 meters). There are no obstacles in the middle."

There is no way, who made Franz have a bad memory? The principle of radio has long been forgotten, and now it can only be freely used by scientists.

"One thousand two hundred digits", this number is far from Franz's expectations. Not to mention wireless telegraphs, it is a bit difficult to use as a walkie-talkie.

Franz sighed: "Then forget it, let them experiment slowly! Scientific research is all about luck, and it's useless to be anxious."

This is for Frederick, and for himself.
Chapter completed!