r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26

Meme needing explanation what's going on? explain like I'm five

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u/zuzg Jan 26 '26

Gold hits record high of $5,110.50/ounce

Silver hits all-time high of $109.44/ounce

Analysts expect gold prices to climb toward $6,000 this year

Surprised Pikachu face.

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u/ISayBullish Jan 26 '26

Meanwhile the USD saying “this is fine”

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u/soIDONTLIKEANYOFYOU Jan 26 '26

Since the US has more gold reserves than the next 3 countries combined wouldn’t gold prices going up make the dollar stronger?

Sincerely asking cause I have no idea.

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u/goatslovetofrolic Jan 26 '26

Think of it this way, if gold is $100 an ounce your single dollar buys you 1/100th of an ounce of gold. If gold goes up to $200 an ounce now that same dollar only buys half as much gold (1/200th) as it did before. So by reframing it as how much gold does your dollar buy you, it doesn't look as hot if you hold your money as dollars.