8 November 2023
Despite the seemingly inexplicable strength of the dollar amidst soaring U.S. debt-to-GDP ratios and relentless deficits, the reality is that the dollar’s might is relative; its major competitors are floundering even more. Yet, the Eurodollar market’s demand for short-term U.S. T-bills—requiring hefty dollar purchases—keeps the dollar afloat.
However, don’t be fooled by the dollar’s robust facade. Gold, the true measure of currency value, is ascending. As gold prices climb, it’s evident that gold is the prudent investor’s choice. Under $2,000, gold is not just a bargain; it’s the savvy hedge against a dollar whose apparent strength is a temporary phenomenon in a world veering towards fiscal recklessness.