2.19.25 - Goldman and UBS predict more gold gains

2.19.25 - Goldman and UBS predict more gold gains

Gold last traded at $2,933 an ounce. Silver at $32.74 an ounce.

'Currency Wars' Predictions Come True -Daily Reckoning

As more uncertainty floods the market, more investors and nations are flocking to gold - since it acts as a portfolio hedge against a host of economic scenarios. Globally, many have lost trust in the dollar and are seeking out tangible alternatives. Those chickens are coming home to roost.

Jim Rickards' best-selling 2011 book, Currency Wars, was prophetic.

He painted a stark picture of the flaws in the modern paper monetary system, warning that "a new crisis of confidence in the dollar is on its way."

Although the U.S. dollar has been strong against most other paper currencies for years, it has weakened dramatically against gold.

Most people think of gold as a derivative of the U.S. dollar. That's the blue line below.

Inverting the relationship is another way to think about gold. As shown in the red line, the dollar has lost 62% of its value against gold since 2015.

Reframing your perspective on the U.S. dollar as a derivative of gold, a timeless money, can be enlightening.

Let's revisit currency wars 15 years after Jim popularized the term. Currency wars are no longer a theoretical discussion amid President Trump's efforts to strike fairer trade deals.