As global debt skyrockets to nearly $310 trillion and gold reclaims its position above $2,000, investor @Frank_Giustra warns of an impending crisis dwarfing the impact of the 2008 recession. With gold poised for a breakout from a triple-top formation and historical trends suggesting resilience during rate-hike pauses by the Fed, the stage is set for precious metals to potentially enter an unprecedented third cycle.
“Given the explosion of debt and money printing over the last 15 years, the next crisis will make the global recession of 2008 look like a garden party…” –
Global debt is nearing $310 trillion.
This ends in one way:
— Gold Telegraph ⚡ (@GoldTelegraph_) November 22, 2023
Gold is back above $2,000.
The next move for the metal is to break out from a triple-top formation.
Precious metals have never been this close to a third cycle.
If so, two important assets are poised to become major beneficiaries:
▪️ Silver, with a historically high 83… pic.twitter.com/EAETOuk1h8
— Otavio (Tavi) Costa (@TaviCosta) November 21, 2023
🥇#Gold has recently performed well when the Fed stops hiking rates.
— Alex Joosten (@joosteninvestor) November 19, 2023
The US Treasury’s four-year cumulative deficit has soared to $9.0 trillion, with daily debt accumulation averaging $6.2 billion. This rapid increase signifies a drastic acceleration in national debt growth, raising serious concerns about fiscal management. Contributing factors include high interest rates and a declining commercial real estate market, marked by increased delinquencies and a slow recovery. This fiscal trajectory suggests an impending financial crisis, driven by unchecked government spending and rising debt service costs. The outlook for the US economy appears increasingly challenging with limited immediate solutions.
Gold futures have surpassed $2,000 an ounce, the highest since late July, buoyed by strong central bank buying and easing U.S. inflation expectations, which suggest a possible end to Federal Reserve interest rate hikes. The surge is partly due to increased gold imports by India and sustained interest from global central banks. Factors like lower interest rates, a weaker U.S. dollar, and geopolitical risks are positioning gold to potentially exceed record highs.