Defeating the competition posed by gold to the dollar long has been the primary objective of the Federal Reserve, U.S. Treasury Department, and Western central banking generally.
The market has been floating on the hopium of a string of rate cuts, while inflation will hold the Fed’s feet to the fire, making the interest-cutting scenario less likely than the market believes.
Authors Wischer and Dwivedi declare the most secure source of energy and minerals is domestic production. “Ultimately, the pursuit of US energy dominance could coincide with a push for US mineral independence,” the authors conclude.
Losses are attributed to interest payments on bank reserves, and the Fed's long-term fixed-rate assets purchased during periods of near-zero interest rates.
Gold is not a speculative asset. It is widely viewed as a safe haven hedge and a store of value. Bitcoin failed as a safe-haven hedge as the markets tanked in 2018.
