For the very first time in 108 years, the Fed just ran at a net loss, and it was huge. To be specific, the Fed reported a loss of $ 114.3 billion in 2023.
Investors are wise to acquire some assets that aren’t dependent on confidence or well-functioning systems, to hold their value. Physical bullion is one of the assets to consider.
Since gold is both an investment and a consumer good, the yellow metal also delivers a positive correlation with equities and other risk assets in a positive market.
Any perception that banks require special exemptions for holding U.S. government debt could shake global confidence in Treasuries as a safe-haven asset and could impact the status of the U.S. dollar.
