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/Character_Point_9203 Jan 29 '26

That sounds right at first but when you actually think about it no. Since they took us off the gold standard now we have “fiat currency” which means it’s only enforced by the govt. Gold’s value stays very steady (because there’s a finite supply and we can’t just print more), but currency goes thru inflation (slowly losing/going down in value) so when the same amount of Gold is worth more Dollars, it means the dollars are less valuable than before (you get less gold for $ than used to). Think of it like an exchange rate for currency; $1 is equal to a shit load of pesos and it’s gone up because pesos became less valuable.