Gold prices pushed above $2,730 Thursday, reaching fresh four-week highs as investors seek protection from persistent inflation and mounting government debt concerns that threaten Americans' purchasing power and retirement savings.
Treasury Secretary Warns of "Out of Control" Government Spending
Treasury Secretary nominee Scott Bessent raised alarming concerns about government spending in his Senate confirmation hearing Thursday. "We do not have a revenue problem in the United States of America. We have a spending problem," Bessent warned, noting that current spending levels are "out of control" at a time when the national debt has surpassed $36 trillion.
Experts Predict "Fast Unraveling" of Global Debt Crisis
The World Gold Council's Global Head of Research, Juan Carlos Artigas, points to sovereign debt as a critical issue for 2025. "The ability of many governments to keep up with this type of spending and how to get funding has become difficult," Artigas cautions, suggesting any debt-related crisis could "unravel fast" and potentially trigger new inflationary pressures.
Hidden Tax of Inflation Continues to Erode Purchasing Power
Recent data shows everyday Americans continue feeling the squeeze of rising prices, even as official inflation metrics moderate. The purchasing power of retirement accounts and traditional savings continues to erode, prompting investors to seek alternative ways to protect their wealth.
Dollar Weakness Could Amplify Inflation Pressures in 2025
Macro strategist Tavi Costa of Crescat Capital warns of a "big shock" coming in early 2025, predicting significant dollar weakness that could further amplify inflationary pressures. "I'm really worried about risk, and that's going to translate to a lower dollar. And that's going to be the next chapter of macro in the following years," Costa explains.
Global Central Banks Loading Up on Gold
Central banks globally appear to share these concerns, with China's central bank recently resuming gold purchases after a six-month pause. This institutional buying reflects growing worries about currency devaluation and government debt levels worldwide.
Technical indicators remain bullish for gold, with prices trending upward on daily charts. Market analysts note the next technical objective at December's high of $2,761.30, with strong support at $2,650.00.
As Americans face the combined challenges of persistent inflation, rising government debt, and potential tax increases, gold's traditional role as a hedge against currency devaluation and inflation continues to attract investors seeking to protect their purchasing power in uncertain economic times.
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REPORT: China's Secret Plot To Starve America & Destroy The DollarYou've already heard how China is waging an all-out war against the US Dollar, right? I mean, it's hard to miss news headlines like: BRICS countries are ditching the dollar and stockpiling gold. China and Saudi Arabia just formed an alliance against the petrodollar. And 42 countries are now set to announce a new global currency. But here's what you might not know: China is also buying up US farmland at record speed with suitcases full of cash – and our government is letting it happen. It's true. In fact, together with 17 other globalist allies… The Chinese Communist Party has now grabbed 43 million acres of prime US farmland. Colonial Metals Group does not provide investment, legal, retirement planning, or tax advice. Individuals should consult with their investment, legal or tax professionals for such services. |
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