SLVO - Risks Of Fiat Currency And The Rising Value Of Gold And Silver As Safe Havens
2024-03-31 10:20:24 ET
Summary
- BMO Capital Markets predicts higher prices for gold and silver as a hedge against the instability of fiat currencies.
- Inflation in the US dollar can have significant implications for dollarized economies, affecting import costs, inflationary pressure, economic stability, and exchange rate risk.
- The gold futures market is showing a strong upward trend, indicating bullish weekly trend momentum and suggesting potential trading opportunities.
Fundamentals:
Holding fiat currency presents inherent risks due to the likelihood of devaluation and instability, and this situation isn't expected to improve. The recent increase in the value of gold and silver can be attributed to currency risk, particularly highlighted by the U.S. threatening to seize Russian dollar assets, which is just one example of the factors undermining the stability of fiat currencies like the U.S. dollar. This instability stems from governments and central banks' tendencies to print money excessively, leading to inflation, economic distortions, and increased debt, driven by political motives rather than economic stability....
Risks Of Fiat Currency And The Rising Value Of Gold And Silver As Safe Havens