Before the election, we were clear that we believed that if Kamala won the presidency, the dollar would be unlikely to survive four years as the global reserve currency.
But that didn’t happen. Which means there is actually a chance to turn things around, especially if the incoming administration embraces capitalism, and makes quick, radical changes in that direction.
If they are successful, that could stave off the decline of the dollar, at least for a time.
Today’s letter is all about these possibilities, what that means for the dollar, and what that means for the price of gold.
Central banks have been the main driver of demand which pushed the price of gold to all time highs. They were buying to diversify their reserves out of the US dollar, and into something they could trust: gold.
Now, with the trajectory of the US less certain, we believe they may sit out of the gold market in the short term, as they wait and see what happens.
But the US still faces a lot of headwinds and challenges. It is a tall order to restore confidence in the US dollar, and government. And without doing so, the dollar will continue to lose market share as the global reserve.
That’s why we were excited to find a type of gold that is near historic lows. Buying these specific types of gold coins provide a hedge on the gold price— their value could actually increase in value, even if the price of gold declines.
We explain everything in our Monthly Letter here.
Capitalism’s Proven Track Record In 1758, a French physician turned economist named François Quesnay published the Tableau Économique– a groundbreaking economic model that marked the birth of Physiocracy. Physiocracy is an Enlightenment-era economic school of thought that championed “laissez-faire”, a term coined from the French phrase meaning “let do” or “allow to act.” That’s why…
