#Inflation #USDebt #GoldInvestments #SilverInvestments #Bitcoin #RateCuts #DXY #EconomicUncertainty
In a state of economy characterized by the worst bout of inflation in over 40 years, and the ever-escalating US government debt now exceeding a mind-blowing $33 trillion, the focus is shifting noticeably towards tangible assets. These hard assets include traditionally favored Gold and Silver as well as the relatively newer entrant, Bitcoin. This shift is clearly in response to the current economic conditions, which show signs of sustained uncertainty and instability.
Expectations of rate cuts in 2024 and the DXY (US Dollar Index) recording its second-worst month since the past year have only intensified the focus on these assets. Amongst these, gold has been showing a strong performance, consistently remaining above the $2,000 mark and even aiming for record highs. This is a phenomenon that has been aligned with the unusual trend of gold prices rising in tandem with US yields – something we haven’t seen since the 70s and 80s. Bitcoin, often dubbed as ‘digital gold’, is on a similar growth trajectory, up by an impressive 120% year-to-date. These investment trends suggest an ongoing shift towards alternative asset classes as investors seek more secure havens in the wake of continuing economic ambiguity and uncertainty.
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