Australia now records the highest inflation among developed nations at 3.8%, outpacing other advanced economies:

• 🇦🇺 Australia: 3.8%
• 🇪🇺 Eurozone: 2.1%
• 🇨🇦 Canada: 2.2%
• 🇯🇵 Japan: 3.0%
• 🇺🇸 United States: 3.0%
• 🇬🇧 United Kingdom: 3.6%
• 🇨🇭 Switzerland: 0.1%

Economists point to high government spending under the current Labor government as a key driver of inflation, alongside housing shortages, rising energy costs, and strong wage growth.

To understand why inflation can be persistent — and why gold remains a trusted hedge — it’s worth revisiting the history of the gold standard.

A Brief History: When Nations Left the Gold Standard

The gold standard once anchored currencies to physical gold, enforcing monetary discipline. Leaving it allowed countries greater flexibility but also paved the way for currency expansion, deficits, and inflationary cycles.

Key Countries Leaving the Gold Standard (1928–1939):

• 1928 — 🇷🇺 Soviet Union
• 1929 — 🇦🇷 Argentina
• 1930 — 🇧🇷 Brazil
• 1931 — 🇬🇧 UK, 🇩🇪 Germany, 🇯🇵 Japan, 🇨🇦 Canada, 🇦🇺 Australia, 🇸🇪 Sweden, 🇳🇴 Norway, 🇩🇰 Denmark, 🇲🇽 Mexico
• 1932 — 🇿🇦 South Africa
• 1933 — 🇺🇸 USA (domestic gold convertibility ends)
• 1935 — 🇮🇹 Italy, 🇮🇳 India, 🇨🇳 China
• 1936 — 🇫🇷 France, 🇳🇱 Netherlands, 🇨🇭 Switzerland
• 1939 — 🇪🇸 Spain
• 1971 — 🇺🇸 USA ends foreign dollar convertibility (Bretton Woods), marking the global end of the gold standard

The Consequences:

• Governments could expand spending more freely
• Central banks could print money during crises
• National deficits grew
• Inflation became more frequent

Today’s inflationary pressures, especially in Australia, are part of this long-term legacy of fiat currencies replacing gold-backed money.

Australia’s Inflation Drivers

• High Government Spending: Fiscal stimulus has increased demand in an already tight economy.
• Housing Pressures: Record migration, limited rental supply, and high construction costs continue to push prices up.
• Rising Services Costs: Labour shortages and higher wages impact sectors like hospitality, education, healthcare, and insurance.
• Energy and Insurance Costs: Household essentials are becoming increasingly expensive.

Why Gold and Silver Matter Now

History shows that during periods of high inflation and weak currency confidence, demand for tangible assets like gold and silver rises. They act as a reliable store of value when fiat currencies lose purchasing power.

At GoldCompany, selling gold and silver for cash is straightforward and convenient:

• Immediate Payment: Turn your assets into cash on the spot.
• Fair Market Pricing: Our expert team ensures you receive competitive rates for bullion, coins, or jewellery.
• Trusted and Transparent: GoldCompany is a recognised name in Australia, giving you confidence and security in every transaction.

With inflation still elevated in Australia and uncertainty in global markets, holding gold and silver is not just historical wisdom it’s a practical way to protect your wealth today.