Loading ...Even someone who I recall as an arch gold bear, renowned economist Nouriel Roubini, writing in the UK’s Guardian, (See: The white swan harbingers of global economic crisis are already here)now sees a role for gold ahead as a replacement for U.S. Treasuries held by potentially hostile (to the U.S.) superpowers like China and Russia. He sees many financial and geopolitical problems which could all blow up in 2020. The final paragraphs of his article make for alarming reading in the least:
“As of early 2020, this is where we stand: the US and Iran have already had a military confrontation that will likely soon escalate; China is in the grip of a viral outbreak that could become a global pandemic; cyberwarfare is ongoing; major holders of US Treasuries are pursuing diversification strategies; the Democratic presidential primary is exposing rifts in the opposition to Trump and already casting doubt on vote-counting processes; rivalries between the US and four revisionist powers are escalating; and the real-world costs of climate change and other environmental trends are mounting.
This list is hardly exhaustive but it points to what one can reasonably expect for 2020. Financial markets, meanwhile, remain blissfully in denial of the risks, convinced that a calm if not happy year awaits major economies and global markets.”
Should Roubini’s fears be even half realised then the gold and silver markets could be in for an extremely wild ride.