The global economy today is quite unusual.
On one hand, the price of gold continues to rise, and on the other hand, the US dollar is also strengthening continuously, even the price of oil is constantly increasing.
According to economic understanding, when the price of gold rises, the dollar falls, but now the dollar is rising, and oil is also rising.
Such a situation is rare, but it has occurred in history, just less frequently.
Typically, when such a rare economic phenomenon occurs, there may be two influencing factors: First, the rise in geopolitical risks and the increased possibility of war.
From the Russia-Ukraine conflict, the Israeli-Palestinian conflict, to the current complex situation in the Red Sea, international situations have been unstable.
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The wealthy class fears war the most, so gold and the US dollar, as the preferred safe-haven assets, have been favored by the rich.
Second, the possibility of a global inflation is on the rise.
The price of gold will soar significantly, and an important factor is the declining trust in the US dollar.
Once the US starts to cut interest rates this year, a flood of money will rush towards the world, and inflation will inevitably rise.
Since the trust in the US dollar has declined, why is the dollar still strengthening?
In fact, it's quite simple.
Although the dollar is not as trustworthy as it seems, other currencies may not be as good as the dollar.
When choosing between the dollar, yen, and euro, most people would probably choose the dollar.
Therefore, behind this round of the sharp rise in gold prices is the impending era of great inflation.
On one hand, the prices of bulk commodities are rising in turns.
Since the beginning of the year, international oil prices have risen by 20%, and international gold prices have increased by more than 15%.
This has driven global investors crazy, and many international institutions have given a unanimous forecast for future international oil prices: international oil prices may break through $100 this year.
It's not just oil prices; the prices of silver, copper, and other bulk commodities are also unable to bear the loneliness and have begun to rise significantly.
When the prices of these basic raw materials rise sharply, it means that most industries may face price increases, and now a new round of "price increase wave" is on its way.
The first shot of domestic commodity price increase was fired by iced tea.
Previously, the price of 1L of Master Kong iced tea was 4 yuan, and after March this year, it officially increased to 5 yuan a bottle.
It's not just iced tea that has increased in price; there are others in line.
Of course, this is just the beginning, and what's more terrifying is still to come.
In 2024, we will witness a global "price increase wave."
If we talk about which commodity has the most significant price increase globally, it's not gold or oil, but cocoa, which has doubled in a quarter.
In the face of such crazy price increases, the price increases of gold and oil are not worth mentioning.
Cocoa is the raw material for food, beverages, and chocolate.
In short, it is a bean from Africa, but its current status is more concerned by the global capital market than any other bulk commodity.
Cocoa futures have been crazy in price this year, increasing from $7,000 per ton to $9,000 per ton in a month, and once broke through $10,000 last month.
After a slight decline, it is still maintained above $9,000.
Therefore, it can be imagined that most industries related to our daily life, such as catering, food, and beverages, will have to prepare for price increases in the future.
Although commodity price increases are closely related to ordinary people, the consequences of the new round of inflation on the global economy may be more terrifying.
It should be noted that the US has been raising interest rates since 2022 to curb inflation, but it has been reluctant to cut interest rates, one of the reasons being that inflation has not really come down.
Now, with the continuous rise in oil and other bulk commodities, the US is very worried.
In addition, European countries have followed the US in raising interest rates for so long, and inflation has not really come down.
If there is another global inflation, should it be to raise interest rates, cut interest rates, or continue to maintain high interest rates?
No matter what action is taken, it will bring a new wave of impact on the global economy.
For ordinary people, it is basically difficult to have any capital to resist the power of inflation.
The significance of investing in gold and the US dollar is not great, and the price increase of basic commodities is inevitable.
Moreover, the prices of houses and cars are likely to rise, and the price war will become more intense.
Those who are not in a hurry to buy cars and houses should wait a bit longer.
The only thing worth investing in for ordinary people is themselves, and it is more meaningful to improve their professional skills or add a side business.