Countries seek currency alternatives – good for gold

In 2001, the U.S. dollar still accounted for 73 percent of reserve currencies worldwide. Then in 2021, the U.S. dollar accounted for only about 55 percent, and last year the share dropped to 47 percent.  Many countries have responded to U.S. actions against Russia, and they have looked to alternatives to the U.S. dollar to bring their reserves into the fold. So the trend toward de-dollarization is taking hold. As long as economic growth is at its best, the U.S. dollar is doing well. If financial markets outside the U.S. also develop well, fewer and fewer countries will turn to the dollar to build up their reserves. In addition, trade agreements that no longer use the U.S. dollar are proliferating. For example, China is now conducting LNG trade on a yuan basis. Malaysia and China are exchanging through an Asian Monetary Fund, and India and Malaysia want to settle in Indian currency in the future.

This in combination with interest rate cuts still taking place this year is good for the gold price. If it becomes clear in the second half of 2023 that the Fed is not yet thinking about interest rate cuts, this could weigh on the price of the precious metal. But, as investors know, low prices are entry prices – if it comes to that. Nervousness over the recent banking crisis has now subsided, but who knows what will happen over the next few months. Inflation is still above the central bank’s target, and if the price of gold does indeed go downhill again, then investments can be made. Over centuries, gold has been worthwhile as a long-term investment. So go for gold and shares from the gold sector such as Queen’s Road Capital Investment or Condor Gold.

Queen’s Road Capital Investment – https://www.commodity-tv.com/ondemand/companies/profil/queens-road-capital-investment-ltd/ – provides capital to mining companies, currently in the gold, copper or uranium sectors. Returns are generated through securities and for the shareholders of Queen’s Road Capital Investment with the help of convertible bonds.

Condor Gold – https://www.commodity-tv.com/play/condor-gold-signed-9-non-disclosure-agreements-with-interested-gold-producers/ – owns three projects in Nicaragua. Currently Condor Gold is in sales negotiations for its assets.

Current company information and press releases from Queen’s Road Capital Investment (– https://www.resource-capital.ch/en/companies/queens-road-capital-investment-ltd/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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