As the US election approaches and the trend towards de-dollarization accelerates, the traditional dominance of the dollar faces unprecedented challenges. Experts point out that the international community is actively exploring alternatives to the dollar and may push for a new type of currency backed by gold. This trend could reshape global trade and lead to a surge in gold demand. Many analysts believe that the dollar's dominance in the global economy could be weakened, while the strategic position of gold will be further strengthened.
Financial experts warn that by 2034, US national debt is expected to rise to $54 trillion, and fiscal vulnerability and rising debt will further increase market demand for capital preservation. In the current environment, the importance of capital preservation already exceeds that of capital appreciation. According to data predictions, by 2034, interest payments on US national debt will increase from $870 billion in 2024 to $1.6 trillion, accounting for more than 20% of government revenue, which will pose a severe challenge to the sustainability of fiscal policy.
The recent trend of de-dollarization in international markets is particularly evident, with global investors re-evaluating their portfolios. Experts recommend prioritizing the allocation of physical assets like gold, especially against the backdrop of global economic uncertainty and profound changes in financial structure, as gold has shown strong resilience. This October, gold prices approached $2,800 per ounce, setting a historical high. Geopolitical tensions and the uncertainties of the US presidential election have also become significant factors driving up gold prices.
Data shows that global central banks continue to increase their gold reserves in 2024. The World Gold Council (WGC) reports that global gold demand grew by about 5% in the third quarter, with consumption exceeding $100 billion for the first time. Experts note that central banks are accumulating gold not purely for investment purposes but because they recognize a major shift in the global currency model is on the horizon. To cope with this change, many countries are conducting strategic re-evaluations to ensure economic stability.
Experts remind investors: "In the current environment of increased uncertainty, it is more important to avoid losses than to pursue high-risk returns." They advise that in the face of complex economic and political situations, individual investors should adopt defensive strategies, focusing on relatively stable assets like gold to ensure the security and preservation of assets.
