Persistent elevated gold price is a warning for US Dollar hegemony
dcarr
Posts: 8,745 ✭✭✭✭✭
I don't always like to hear what Mohamed El-Erian has to say, but I have to admit that I generally have to agree with it. His commentary is usually the most astute observations out there. In this latest article he points out that while there is still no real substitute for the US Dollar internationally, countries (such as the "BRICS" members) are increasingly building "pipes" around the US Dollar.
"Gold rally should be ‘flashing yellow in Washington’ as international investors shed USD":
https://kitco.com/news/article/2025-03-20/gold-rally-should-be-flashing-yellow-washington-international-investors
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Comments
Gold and silver will benefit greatly from a coming sovereign debt crisis that is reaching a boiling point in Europe. Look for the EU to believe a major war will sidetrack the crisis it faces. Their current public statements are showing signs of this. This will drive PM prices through the roof. Get gold (and/or silver). Get a Costco membership and credit card and buy cheap as the products become available.
Freedom is like inflation: you lose 2-3% every year. Slow enough that you don't even notice.
Washington IS creating the yellow light.
Haven't read the linked article yet, but that is what my gut feeling is.
We are in a sea-change time in many areas, no telling what we are going to evolve to. Perhaps the Fed system will be changed... perhaps not. I do not expect the status quo will remain the same. Prepare accordingly, and place your bets as one sees fit. (my crystal ball remains cloudy... perhaps I will try 'chicken bones')