The post Bank of America calls gold the last safe haven against U.S. debt disaster appeared on BitcoinEthereumNews.com.

With the U.S. national debt ballooning to over $35 trillion, analysts are starting to question whether traditional investments, like Treasury bonds, can still provide stability. The answer, according to Bank of America’s latest report, is simple. Gold is now the ultimate safe bet. The metal has already shot up more than 30% this year thanks to a variety of factors. Interest rates are falling, central banks are buying up gold like it’s going out of style, and U.S. retail investors are jumping on the bandwagon. It’s a gold party all over. U.S. debt crisis In a note titled “Is Gold a Safer Investment Than Treasuries?” Bank of America’s Commodity Strategist, Michael Widmer, said that fears over debt levels will be gold’s key driver. The debt situation has gotten so bad that neither of the two leading U.S. presidential candidates (Kamala Harris and Donald Trump) has a plan to fix it. Certainly not one they’ve shared with the public. Trump’s tax proposals alone could add about $7.5 trillion to the debt, while Harris’s plan would tack on another $3.5 trillion, according to the Committee for a Responsible Federal Budget. Widmer pointed out that other countries are in the same boat. Climate change, aging populations, and rising defense costs are forcing governments everywhere to borrow more money. Widmer explains that this is turning investors away from traditional safe havens like Treasury bonds. In his words:  “With lingering concerns over U.S. funding needs and their impact on the U.S. Treasury market, the yellow metal may become the ultimate perceived safe haven asset.” Bank of America has set a price target of $3,000 for gold. Can gold really replace Treasury bonds? Of course, not everyone is convinced. While there’s always been a group of investors who prefer gold over Treasuries, their numbers could grow…

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Filed under: News - @ October 18, 2024 6:23 am