Gold, Basic Principles Introduction.

The Federal Reserve and gold are natural enemies. People’s trust in gold is certainly higher than that in paper currency. The Federal Reserve's approach is to keep gold at a low price; when gold loses its ability to preserve value, it becomes troublesome and cannot circulate. People gradually start to abandon gold. This has been the monetary logic for decades.

However, there is a bug here: the trust in gold is natural, while the trust in paper currency is artificial. If the Federal Reserve can suppress gold's momentum, gold will lose its appeal; if it cannot, gold will soar.

Throughout history and across cultures, all historical narratives, stories, and fairy tales feature gold; this is inscribed in the human DNA and cannot be changed. The Federal Reserve has forcefully suppressed the value-preserving function of gold for decades. When it can no longer keep it down, gold will viciously rebound.

In summary, when the Federal Reserve is strong, gold is weak. When the Federal Reserve is weak, gold is strong.

Last year, when I said to buy gold, this was essentially the reasoning. Of course, this is a rough statement, but it covers 90% of the theory.