The new year is not likely to be good for the U.S. dollar, GoldMoney research director Alasdair Macleod writes today.
The United States, Macleod writes, "will compete for dominance on military grounds while the battle for global power is in fact economic. It is a strategy America is bound to lose, because empires always thrive on trade, not suppression. Suppression is an endgame. By opting for trade isolationism and military power, the Americans are risking everything on the dollar's status being maintained, because if the dollar sinks, so does America. However, that is an increasingly likely outcome."
Of gold's prospects, Macleod writes: "They look good from an investor's point of view. From an economist's point of view, it's not gold that looks good as such but that the decline toward destruction for the dollar, the world's reserve currency, is now progressing toward its inevitable conclusion."
Macleod argues that cryptocurrencies are competing with fiat money, not gold.
He adds: "For years the gold price has been suppressed in American markets through the expansion of unbacked gold derivatives. That control is likely to be first challenged by a weakening dollar and ultimately wrested from U.S. futures and London's forward markets, if only because physical gold markets are now firmly under Chinese control."
Macleod's commentary is headlined "2018 Could Be the Year for Gold" and it's posted at GoldMoney here:
https://www.goldmoney.com/research/goldmoney-...ould-be-the-...
