Monetary Hegemony-New Dual-Standard System

"Welcome, everyone, to Austrian Economy Online. I'm your host, Bonnie.

"Today, we'll be discussing a topic everyone cares about most—gold.

"As everyone knows, gold is wealth. The Divine Shield we use every day is issued on a gold standard. It could be said that gold is closely intertwined with our lives; no one can do without it.

"Over the past month, gold prices on the Vienna gold market have risen by seven percent, reaching their highest point in two years.

"We are now connecting with economist Professor Bridget Foss, who will explain the impact of rising gold prices for us."

"Beep, beep, beep..."

Host: "Hello, Professor Bridget Foss. Can you hear us?"

Bridget Foss: "I can hear you."

Host: "Professor Bridget Foss, everyone has been very concerned about the recent rise in gold prices.

"Could you tell us about the impact of rising gold prices on the world economy?"

Bridget Foss: "Certainly, Host."

"We all know that gold is a rare metal. It is generally used directly as currency or as a standard reserve, and its price has always been very stable. Even when it fluctuates, the swings are minor.

"Gold prices have risen seven percent over the past month. That may be said to be both unexpected and expected.

"Some may say that I am contradicting myself, that this makes no logical sense. In fact, there is no contradiction at all.

"It is unexpected because, when gold exists as currency or as the standard reserve, its intrinsic value does not change. Under normal circumstances, even if there are fluctuations, it should not rise this much.

"However, aside from serving as currency, gold is also a commodity in itself. Since it is a commodity, its price is determined by the market. A short-term price increase is therefore perfectly normal."