Forget Gold, I'm Watching This Other Precious Metals Play
Submitted by QTR's Fringe Finance
It’s no surprise that gold has ripped higher—central banks have been snapping it up at a historic pace, fueling the latest leg of the rally.
Gold has also been rallying due to growing concerns over global economic instability, persistent inflation, and geopolitical tensions.
As central banks, especially the Federal Reserve, approach the limits of their tightening cycles, investors are increasingly hedging against the possibility of a policy pivot that could weaken fiat currencies.
The mere suggestion of future rate cuts or a slowdown in Quantitative Tightening boosts gold, which thrives in environments where real interest rates fall and confidence in traditional monetary tools wanes.
Additionally, ongoing conflicts in Eastern Europe and the Middle East, along with rising deficits in major economies, have fueled a flight to safety, reinforcing gold’s role as a store of value amid uncertainty.
At the same time, demand dynamics are shifting. Central banks around the world, particularly in the Global South, have been aggressively buying gold to diversify away from the U.S. dollar—a trend rooted in a growing distrust of dollar hegemony and potential sanctions risk.
Retail and institutional interest in gold has also picked up, especially as equities falter and the bond market sends recession signals.
But if history is any guide, there could be more upside. From 2000 to 2012, gold rose nearly 5x, and many believe we’re in the early stages of a similar secular trend. But there’s somewhere else I’m keeping an eye on, too.
But if gold’s breakout has one looking for the next runner-up...(READ THIS FULL COLUMN HERE). .
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