Gold Switzerland: Jump on the gold wagon so you don't lose your fortune
Author of Gold SwitzerlandEgon Von Greyerzpaints a gloomy picture in his article of the situation of the dollar-based monetary system and warns of the threat of an immediate collapse. The writing blames the U.S. government for poor economic management and warns those who are not prepared to face the consequences.The article emphasizes the author's strong recommendation of gold as a last safety net in economic uncertainty. Greyerz examines history and demonstrates that physical gold has been an ancient winner in preserving wealth. He particularly highlights its significant role in the collapses of various currencies and fiat monetary systems.
The article thoroughly criticizes a recent proposal to confiscate 300 billion dollars from Russian reserves for the reconstruction of Ukraine. The author considers this move short-sighted and warns of possible consequences, such as global political and civil unrest. Greyerz bases this critical perspective on a broader historical examination, particularly of situations where the United States has been seen as the initiator of conflicts. He questions the ethical justifications for these.
In addition to geopolitical diversities, the article delves into the world of energy economics, arguing that the world is struggling with an impending energy crisis. It questions the efficiency of renewable energy sources and challenges the prevailing perception of electric cars in terms of the environmental impact of battery production and disposal. The article discusses the economic consequences of energy shortages, such as a decline in wealth due to diminishing energy resources.
The author reflects on and anticipates the future role of the BRICS countries as the Western empire weakens, but considers China's significant debt problem a potential obstacle to the rise of the BRICS nations.
In the end, Greyerz encourages the reader to take action and jump on the "golden bandwagon." He presents gold as a lifeline in the approaching economic storm. He also emphasizes the urgency of the matter from an individual's perspective: with gold and partly silver, a private individual can secure their financial situation.
Hubbis: Gold in 2024 - Surprising Trends and Sustainability
Gold trends in 2024 is discussed in his article by Hubbis. (Helping Asian Wealth Management Communities Interact). The article states that the price of gold has traditionally been expected to decline as interest rates rise, but gold has exceeded expectations by remaining at record levels - around 2000 USD per ounce over the past 18 months. The historical relationship between gold and the real yields of bonds changed after the global financial crisis of 2008, when quantitative easing raised concerns about the weakening of monetary policy and increased the attractiveness of gold.Over the past 15 years, gold and the level of real interest rates have been closely linked, but recently, according to Hubbis, there has been a divergence between them. The normalization of monetary policy by the U.S. Federal Reserve (Fed), which includes balance sheet reduction and interest rate hikes, led to a significant decrease in the amount of physical gold ounces in Western ETFs.
Demand for gold bars and coins in Europe, particularly in Germany, also fell, and the sentiment in the gold markets froze, the article reports. However, another strong source of demand, central bank demand due to the Russia-Ukraine conflict, offset these negative price pressures.
Real interest rates began to rise in early 2022, at the same time that the price of gold and the levels of real interest rates diverged. Central bank demand, particularly due to geopolitical events, is significant in this regard, according to Hubbis. In addition to central banks, China and the Middle East have seen record levels of demand for gold bars and coins, which is a significant change compared to previous years.
Based on these factors, Hubbis suggests that gold will also demonstrate resilience in 2024 amid rising interest rates and geopolitical tensions. Thus, even as central bank demand and global demand patterns change, the traditional dynamics of gold are being altered.
Summary
Two articles offer slightly differing perspectives on the future of gold. Greyerz is very optimistic about gold, claiming that it is a safe-haven asset whose value will continue to rise amid economic uncertainty and geopolitical instability. Hubbis is more reserved, but he still believes that gold is likely to be a valuable asset in 2024.
The key points in the articles are:
- Gold has surprised expectations and maintained its record price even as interest rates rise.
- Central bank demand is a significant factor in the price development of gold.
- Geopolitical instability is also a factor driving the demand for gold.
It remains to be seen how the gold market will ultimately perform this year. This article has been compiled by referencing the content of two originally English-language articles. They do not necessarily represent Jalonomi's views, and the content is not intended as investment advice.
