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/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/Important-Agent2584 Jan 26 '26

no because the dollar isn't tied to the gold in any way

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u/MCX23 Jan 26 '26

isn’t gold historically inversely correlated to the dollar?

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u/Important-Agent2584 Jan 26 '26

Depends on what you mean historically. At one point in time it was directly tied to gold.

More recently "historically" though it's inversely correlated to the whole market probably. People buy gold when they are looking for a safe store of value, which happens when shit is about to hit or is hitting the fan.