‘Physical gold, not cryptocurrency’ is the only safe haven asset, as the US dollar drops – John Kaiser

Gold will rise as the US dollar loses its position as the world’s reserve currency, John Kaiser, founder of Kaiser Research Online, said at the PDAC 2022 conference in Toronto. He noted that China and Russia will constitute the eastern axis of economic power.

“The US dollar will not be used in the Sino-Russian axis,” Kaiser said. They will break the dominance of the US dollar. It’s not an overnight thing, it’s not black and white. It will be a transitional thing. And I think this is where the true price of gold will thrive.”

Kaiser spoke with David Lane, broadcaster and producer at Kitco News.

Autocracy, US dollar and gold

Kaiser said the US is headed toward authoritarianism, and that gold is a safe haven as political uncertainty grows.

“We see even in America, a lot of people want to have autocratic rule, and dictatorship as a basis,” he said. “Now if this starts to happen, everything starts to become unstable and currencies, even the US dollar, become unstable… So the only mobile asset commodity that I think is a safe haven is physical gold. Not crypto or anything Like this. ”

He added that gold is a “stored energy,” while cryptocurrency is an “energy liability,” because “someone needs to consume electricity to keep all blockchain transactions going.” He further explained that gold is an “insurance policy” when “chaos breaks out,” but he does not consider it a form of money.

He explained, “Cash is what you can easily spread out to buy assets whose value suddenly deflates, while you first have to sell gold to get cash.” This is why gold is an asset class. It’s not really money.”

The US dollar will lose its place

Kaiser said the dominant international currency, the US dollar, would lose its position as a reserve currency. He explained that the center of economic and political power is shifting east, leaving the United States behind.

“The whole concept of globalization, which has run everything for the past 30 years, with the US dollar in the center, this is now collapsing,” he said. By 2027, the Chinese economy will be roughly the size of America’s. Convergence is happening faster than expected… That’s why [countries are] Seeking to pay with these other currencies, such as the renminbi, the ruble … This will break the dominance of the US dollar. ”

To see the Kaiser gold price forecast, watch the video above.

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