Another Example of Good News in Mourning, Inflation and Gold Price Rise
  On February 10, 2025, China Wealth Network published a report stating that since the beginning of the Year of the Snake in the lunar calendar, gold prices have been continuously rising. The central bank has increased its gold holdings for three consecutive months and stated that "related industry thematic funds have gained significantly since 2025." According to the "Exchange Rate Table" website, the gold price has risen from about 638 yuan on January 17 to about 672 yuan on February 16, with the highest price reaching about 688 yuan within 30 days. As gold prices increase, the A-share jewelry, precious metals sectors have surged, with stocks like Laishen Tongling, Cai Bai Shares, and others hitting the daily limit (Pengpai News). In the bleak scene caused by the economic crisis, explaining the abnormal growth of gold prices has become a problem that mainstream economists have to face. Gu Fengda, chief analyst at Guoxin Futures, said, "Many institutional investors, amid the decline of dollar credit, high premiums in the US stock market, and instability, are reallocating funds into gold assets due to diversification needs." In other words, the economic problems of the US imperialism have caused the abnormal rise in domestic gold prices, which in turn has led to a boom in domestic gold investment.
  In fact, this is entirely a cover-up by the Chinese revisionist school. Marx said: "**Gold and silver are not inherently money, but money is inherently gold and silver.**" (Capital) With the emergence of money, the contradiction between the exchange value and the use value of commodities further developed. The appearance of money caused the world of commodities to be divided into two levels: the first level is commodities, which are various specific use values; the second level is money, which measures the exchange value of all commodities (Xu He, Introduction to Political Economy). Nowadays, the currency issued by capitalist countries is actually a symbol of value—paper money, used to replace the means of circulation of money (money circulation refers to the process of money constantly transferring from sellers to buyers). Therefore, the essence of the rise in gold prices is the reduction in the amount of gold represented by each unit of paper money. In other words, the process of rising gold prices reflects the process of Chinese revisionist inflation, not the decline of US dollar credit. As long as we observe the trend of gold prices since China’s re-establishment of capitalism, we can clearly see this. From November 1979 to July 1980, the gold price was only 12.5 yuan per gram, and today, gold prices have increased more than 44 times!
  Lenin pointed out: "**Over-issuance of paper money is a form of the worst forced debt, which severely worsens the living conditions of workers and the poor.**" (Lenin, What Is to Be Done?) The malignant rise in gold prices is a direct result of the Chinese revisionist school’s forty years of adherence to Keynesianism. It expands the money supply by lowering loan interest rates and reducing the margins banks deposit at the central bank, covertly implementing inflationary policies. Because expanding lending relationships does not immediately flood the market with large amounts of money, causing hyperinflation. Only when the economic situation improves and investments recover will the expanded money supply lead to rising prices, and the labor income of the masses is thus unwittingly exploited by bureaucratic bourgeoisie.
