This book tells us that this contradictory phenomenon actually releases a key signal to us, that is: at present, the currency war is outdated, and the gold war is the future.

And this is the true meaning of the word "new era" in the title of this book.

Why does the author believe that only gold is the "real" currency?

The first reason is that in the universe we know, gold is the most suitable material to play the role of currency.

The first reason given by the author for the statement "Only gold is the real currency" is that in the known universe, gold is the most suitable substance to play the role of currency.

The second reason focuses on the current international monetary system.

The author believes that gold is the base currency that truly supports the international monetary system.

The author's thinking logic is: in today's world where economic uncertainty is increasing and people have insufficient confidence in various credit currencies, countries around the world are accelerating the acquisition of gold. This trend, coupled with the United States, the Eurozone and international currencies

The IMF's huge reserves of gold mean that a shadow gold standard has actually formed internationally and is returning to a more standardized gold standard.

This phenomenon reflects that gold is the base currency that truly supports the international monetary system today.

The author believes that gold is eternal insurance.

There are two key words in this sentence, one is insurance and the other is eternity.

Let's first look at the word "insurance". The specific meaning of this word in the book is that gold is insurance against inflation and deflation.

Gold can resist inflation, which is easy to understand.

We all know that generally speaking, the best way to combat inflation is to turn cash into physical investments, such as investing in real estate or precious metals such as gold.

However, investing in real estate requires a relatively large amount of capital, and the turnaround time for real estate transactions is long, so the liquidity of real estate investment is relatively weak.

In contrast, investing in gold does not require so much money and is easier to cash out.

Therefore, resisting inflation is also an important reason why many people invest in gold.

Regarding the statement "gold is eternal insurance", we are left with the word "eternal".

Why do we add the word "eternal" in front of insurance?

This is because, no matter how the external price fluctuates, the intrinsic value of gold is eternal.

When we say that the price of gold has gone up or down, strictly speaking, it is not the price of gold that is changing, but the price of currency that is fluctuating up and down.

Still using the example we mentioned earlier, when the U.S. government raised the price of gold from about US$21 to US$35 per ounce in 1933, it seemed that the price of gold had increased. In fact, it was just that the price per dollar fell.

.

The author believes that since gold is priced internationally and is priced in US dollars, if the assets you currently hold are domestic assets, holding gold is equivalent to adding an international asset to your asset portfolio, or in other words,

A U.S. dollar asset is added to the RMB assets.

This has some appeal for households that want to avoid the risk of currency depreciation.

In addition, if you find it difficult to grasp the direction of exchange rate changes, you don't need to worry too much.

Because in the author's opinion, for those who hold gold, the most important thing to care about is not the nominal price of gold, but the weight of the physical gold you hold.

Because fluctuations in the nominal price of gold are mainly caused by fluctuations in currency prices, and currently, currency prices in various countries fluctuate ficklely, so when you think about the proportion of gold in your investment portfolio, a more effective approach is to start with physical gold.

Consider it from perspective.

The core issue discussed in this book is why it is said that "currency wars are a thing of the past, and gold wars are the future."

The logical development here may be a bit complicated, so let’s briefly summarize it.

The first main reason is that the author believes that gold is real money.

First of all, gold is the most suitable substance in the known universe as currency; and, as the value of various credit currencies increases today, gold, as a physical currency, has gradually become the basic currency that truly supports the international monetary system.

An important manifestation is the “shadow gold standard” that has been formed internationally.

The second main reason is that gold is eternal insurance.

First of all, gold can resist inflation and deflation; further, because the intrinsic value of gold is eternal, its ability to withstand currency price fluctuations is durable.

At this point, we understand why, after the end of the gold standard era, gold still plays the role of a stabilizing needle in the international monetary system.

Following the author's thinking logic, we can find that the fundamental reason why this sea-fixing needle can work is actually very simple: You see, the current international monetary system is composed of the credit currencies of various countries. What we call inflation,

Deflation is actually a change in the domestic price of a country's currency, while exchange rate fluctuations are a change in its international price.

Therefore, the essence of the so-called "currency war" is actually a "price" war for the credit currencies of various countries.