Africa Commodities Currency FA Finance Gold

Gold rally a sign that dollar’s reign is in question

Gold’s historic rally is a sign that the U.S. dollar’s reign as reserve currency is in question, says portfolio manager: This summer’s massive gold price rally could be a sign that the market is losing confidence in the US dollar as the world’s reserve currency, according to Horizons ETFs portfolio manager Nick Piquard.

“The rally is telling investors that the financial system with the U.S. dollar as the reserve currency, [might need] some changes,” Piquard told Kitco News last week.

Also read: Nigeria hopes gold mining reforms can bring in US$500M/yr

Global debt and unlimited money printing are deteriorating the confidence in the U.S. dollar as the global reserve currency.

“The U.S. dollar system has worked so far. But we’re getting to the point where there’s so much debt in the world and with this new crisis, there’s even more debt,” Piquard explained. “People are figuring out that maybe they will have to make some changes to how the U.S. dollar acts as a reserve system. The U.S. is probably going to have to print a lot of dollars to bail out all this debt. That’s really fuelling the gold rally.” https://lnkd.in/eZ2iikZ

One comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: