Strange New Respect, Part II
One way to track the growing de-dollarization of the global economy is by the “Strange New Respect” gold keeps getting.
That’s what we called it in a piece over a year ago when we reported that central bank gold buying was setting new records. The mainstream media were missing it (of course!), but the world’s central bank have clearly been taking gold very seriously.
The latest news on that front is from Russia, where legislation to allow the country’s ’s $167.6 billion sovereign National Wealth Fund to invest in precious metals is now under consideration. The fund holds pension assets and revenue from Russia’s oil exports.
Finance Minister Anton Siluanov is already on record supporting the move, observing correctly that gold is more sustainable in the long term than other financial assets.
As we have often observed, central bank gold buying is a megatrend for a reason. The prognosis for the dollar is negative.
More strange new respect for gold can be found in the major financial institutions and investment figures, especially those that have long eschewed gold, now looking at it more favorably. Warren Buffett is among them as we have chronicled HERE and HERE, while major banks with new gold recommendations and higher price targets included UBS, Wells Fargo, and Bank of America. Pension and endowment funds are showing a strange new respect for gold, too.
That is what happens when the State has mismanaged its currency and painted itself into a corner of unpayable debt. Oh, and on that front we note that the new fiscal year has gotten off on a bad foot. The deficit for the first month of Fiscal Year 2021, was a record-setter for any October of $284.1 billion. That’s a deficit more than twice as large as the prior October.
Already our $27 trillion national debt is producing lower investment and growth. If the debt continues to grow by $2 – 3 trillion a year, it will double by 2030. The US will be looking at a national debt of $55 – $60 trillion. We shudder to think what that will mean.
All around the world people who know money best are developing a strange new respect for gold. For more reasons why they are moving to gold, speak with a Republic Monetary Exchange gold and silver professional.
Do it now, before the movement turns into a stampede.