Gold and a Key Global Signal
There is an important data point that needs attention. When we look at long-term global data, gold prices over the last almost 20 years show a clear pattern.

This data compares gold price movement with how much interest governments pay on their debt across the world. The two lines move almost together, which is very hard to ignore.
Rising Debt and Rising Costs
Governments around the world have taken on huge amounts of debt. On this debt, they must pay interest every year. Today, global interest payments are close to five trillion dollars annually. This cost keeps growing because total debt is increasing and interest rates are also slowly moving up.
Strong Link With Gold Prices
The rise in gold prices matches closely with the rise in government interest payments. This shows a strong link between the two. As debt grows and interest rates rise, interest payments grow even faster. This creates a compounding effect, and the same kind of compounding effect can be seen in gold prices over time.
Why This Trend Is Hard to Stop
Reducing global debt is very difficult. Debt is not only growing, but its speed is also increasing. For many years, interest rates in the Western world were kept near zero. Now this is no longer possible. Whenever rates are cut, inflation rises quickly. So interest rates cannot stay very low for long.
Gold as a Safety Measure
Because debt and interest payments keep rising, gold has become a kind of barometer. It reflects how serious the global debt and interest situation is. This is why gold is seen as a safe place for money. In the long run, it is hard to see a case where gold does not move higher.
Short-Term Moves vs Long-Term View
In the short term, gold prices can fall due to sudden news or selling by a country. These moves can disturb the trend for a while. But looking at the current global situation, there seems to be little chance that gold, and even silver, will stop rising over the long term.
