WEB Notes: Gold did not spike all by its lonesome. Gold has spiked due to the extreme amount of debt the United States has. With each new administration, we see record spending at the federal level.
This leads to uncertainty as that debt cannot be repaid. Therefore, people are seeking to hedge their portfolio’s by purchasing precious metals in addition to other assets. Nothing happens in a silo folks, this is all connected and about radically transforming our world.
A record high price for gold, known as the currency of last resort, is raising questions about the U.S. dollar’s future as the world’s reserve currency, according to a Goldman Sachs research note published Tuesday.
The commodity, which tends to see increased demand during economic uncertainty, reached an unprecedented price of $1,943 an ounce this week, in part because of record-low interest rates that Goldman Sachs analysts said may demonstrate a stronger appetite for inflation at the Federal Reserve.
“Combined with a record level of debt accumulation by the US government, real concerns around the longevity of the US dollar as a reserve currency have started to emerge,” the analysts wrote.
Source: The Hill