JUST IN: Bank of America warns that gold may be the final safe haven as US Treasuries face risks from rising national debt.
— Watcher.Guru (@WatcherGuru) October 17, 2024Political Inaction and Economic Consequences
The bank’s analysis highlights a concerning lack of fiscal discipline in the political sphere. Neither of the current US presidential candidates appears poised to address the debt issue meaningfully. In fact, their economic plans are expected to further exacerbate the problem, potentially pushing the national debt to even greater heights.
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Central Banks Diversifying Reserves
As global economic uncertainties persist, Bank of America predicts an increase in gold demand, particularly from central banks looking to diversify their currency reserves. Over the past decade, central banks’ gold holdings have already seen a significant jump, rising from 3% to 10% of their reserves. This trend is expected to continue, further bolstering gold’s position in the global financial system.
Gold’s Record-Breaking Performance
The metal’s appeal is evident in its recent performance. Gold has been setting all-time high prices since December 2023, recently approaching the $2,700 mark. This surge represents a new record, surpassing the previous high of $2,696 set in October. Bank of America’s analysts believe this upward trend will continue, projecting gold prices to eventually reach $3,000 per ounce.Gold as the last safe haven asset (credit: PR)
A Global Shift Towards Gold
The implications of Bank of America’s warning extend beyond the United States. As concerns about debt levels and economic stability grow worldwide, gold is increasingly seen as a global safe haven. The bank suggests that this could lead to a significant reallocation of assets, with both individual investors and institutions looking to increase their exposure to gold.
In conclusion, Bank of America’s warning underscores a pivotal shift in the perception of safe-haven assets. As the US national debt continues its upward spiral and traditional safe havens face unprecedented challenges, gold stands out as a beacon of stability in an increasingly uncertain economic landscape. Investors and policymakers alike will be watching closely to see how this trend unfolds in the coming months and years.
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Publish date : 2024-10-19 05:16:00
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