As we’ve often discussed, gold is absolutely the best investment to own during uncertain times like we’re currently experiencing. We’ve already seen the huge rise it’s had in recent years and it has a lot further to go on the upside, write Mary Anne and Pamela Aden, editors of The Aden Forecast.
The situation in the Middle East is putting a squeeze on other products, and that will drive prices higher. We’re already seeing it in the commodity markets – and commodities in general are also set to rise further.
As for US government bonds, we’re seeing a big change. As we’ve often advised, it’s best to avoid bonds. It started in 2022 when the US decided to freeze billions of dollars of Russian assets held in the US.
This one act spooked foreign bondholders because they realized their investments were not safe if the US decided it didn’t like something they did. As a result, foreign central banks began selling their US bonds and buying lots of gold instead. In the meantime, the US rapidly accumulated more and more debt, making US bonds less attractive.
Foreigners are now dumping bonds at a faster pace, which means the US is being forced to buy more of their own debt. And to do so, they’ve been printing large amounts of money, which is inflationary.
It’s basically become a vicious cycle of accumulating more debt at a higher interest rate, which is ballooning the interest payments on the debt. This is now one of the US’s biggest expenses, right behind Social Security. This also makes foreigners very concerned about the outlook for the US dollar.
We need to pay attention, protect ourselves, and invest accordingly. All things considered, we think you’ll be glad you did.
