Transformation of the global economic system Go to gold
- Mar 19
Friends! Today you will learn why gold can be the best class among all assets for investment in the near future.
The current value of gold is $ 1938 per troy ounce.
Why are we near the historic maxima?
👉inflation in the US dollar in February 2022 amounted to 7.9% (in January it was 7.5%). That is, inflation continues to grow. She updated the maximum of 1982.
At the same time, average annual inflation in the United States over the past 10 years amounted to less than 2%. For the global reserve currency (dollars), this figure was acceptable, but 7.9% is completely unacceptable.
Therefore, investors are looking for other alternative assets that are not depreciated at such a speed.
👉Pook gold global Central Bank. In 2021, the demand of the Central Bank for Gold reached a record level, with the result that global gold reserves reached the highest level for almost 30 years.
The question for physical gold (more precisely, the demand for ingots and coins) reached 1,124 tons - the highest demand for almost the last 10th anniversary (before that, the highest demand was observed in 2013).
Why grew up demand?
✅zoloto works well during the crisis, and now it is assumed. With serious falls of the American index of S & P 500, gold felt good.
✅Zoloto is an effective means of diversifying a portfolio.
Goldman Sachs in 2022 predicts the price of gold at $ 2500 per ounce. Why such a conservative agency gives such controversial forecasts?
Because, now there is a transformation of the global economic system.
What's happening?
👉 Americans and Europeans froze Russian gold reserves in their currencies. Thus, completely undermined confidence in them.
All countries that are trying to defend their national interests and conduct independent policies will look for other currencies and assets as national reserves. And gold is remarkably suitable for this.
In particular, that is why we see an increase in gold purchases from the Central Bank of various countries. In 2022 it will only increase.
Opponents introduced SWIFT lock for some Russian banks. That in the end will lead to the creation of an alternative system of interbank transfers.
Everything goes to the fact that the dedollarization will gain momentum.
Now oil is traded for dollars, and it is needed to everyone. Therefore, there are serious demand for dollars, but the news with China puts the dollar at risk.
Russia is trying to leave the dollar in his calculations. Russia and India are already working to expand settlements in national currency.
If Saudi Arabia and Russia (the largest exporters) will cease to trade oil in dollars, it will be a serious blow.
China is considered the largest foreign debt holder. If he continues to get rid of dollars, what will be with the US economy?
In 2014, after reunification with the Crimea, sanctions were imposed against Russia. And that's what Obama said:
That is, the Obama administration understood how serious unilateral restrictions towards Russia could lead to what action. But the current administration of Biden still introduced them.
Perhaps we are at a critical historical moment associated with the global economic system. And gold in this period of turbulence can be a good protective asset.
Today, thanks for your attention!
Put your finger 👍 If the article was useful for you. Subscribe to the channel not to miss the following articles.