Gold Price Surge
Gold price surges as US Federal Reserve reaches debt limit on January 19th.
The debt time bomb that’s been ticking for decades away moves towards midnight.
Government debt across the world has reached eye-watering levels, with Janet Yellen, US Treasury secretary saying last week in a letter to Congress that as early as this week, the Treasury would be forced to take ‘extraordinary measures’ to prevent a default.
Last week, Matterhorn Asset Management issued a sobering report identifying 2 nuclear risks as we enter 2023 – on the one hand, the geopolitical risk arising out of the Ukraine conflict, and the strong possibility of a red flag incident triggering nuclear conflict. The other nuclear risk being the global debt crisis, which has ballooned from $7Trillion in 1971 to $300Trillion today, plus $2Quadrillion in the global derivatives market.
Debt risk, plus the added risk of imploding markets only reinforces the strength of holding gold, which is real and tangible.
No wonder gold surged past NZ$3,000 last Friday.
There’s also a strong sign of dollars being swapped for gold by Eastern banks and governments as they abandon the dollar. China has officially stated it holds 1800 tonnes of gold but it’s estimated that it holds significantly more, as it moves de ‘de-dollarise’.
As Matterhorn Asset Management comment at the end of their report - 2023 appears to be heading into deeper and more dangerous territory for which gold offers obvious protection.
At MyGold we have stocks in both silver and gold, so call an agent to lock in a price today!