This story was originally published here.
Society has a trust issue.
It’s why people stick with their tribe of choice on social media.
It’s why politics has become an “us or them” team sport over these past two decades or so.
And it’s why a growing number of people seem to treat scientific fact more like a suggestion.
Increasingly, it’s why gold is seeing a surge in popularity while everything else collapses around it.
According to a report released by Wells Fargo earlier this week, gold’s ongoing bull run signals “a growing lack of trust in the world’s monetary system.”
It’s a stark warning that signals a shift in collective thinking. It also shows that recent moves in the space aren’t the flash in the pan some think it is.
A Shift That’s Here to Stay
The quoted report was written by John LaForge, the bank’s head of real asset strategy. He named that lack of trust as the fourth overall reason why gold has rallied. Low long-term interest rates, excessive money printing across the globe, and a weakening dollar were the other three. The longer the other three trends continue, the stronger the lack of trust in the world’s monetary system will become. It presents an immediate problem for governments trying to correct economies that have been beaten down by the pandemic, but more and more people are seeing it as a problem that may be beyond fixing.
And it increasingly seems like the collapse of the monetary system as we know it is something that’s bound to happen no matter what.
What do you see when you turn on the news?
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