Investors are staying on the sidelines for now as the yellow metal is having trouble maintaining its upward momentum. However, one of Toronto’s oldest boutique investment firms says investors will want to own gold as the world faces significant threats in the coming months and years. According to the company’s CEO, gold prices will rise in this process.
When this happens, the shiny metal will rise to $2,200!
cryptokoin.comAs you follow from, although gold rises, it cannot stay above the critical level of $ 2,000. Fed rate hike speculations and US economic data pointing to a pause provide support for the shiny metal. However, the Fed’s stance of ‘higher interest rates for longer’ remains a roadblock. In his latest research report, John Ing, president and CEO of Maison Placements Canada, expects gold prices to rise to $2,200 as chickens raised by decades of uncontrolled spending return home to roost. In this context, Ing makes the following statement:
We believe that rising inflation, de-dollarization, increasing geopolitical risks, global debt and the rise in populism create a positive backdrop for gold. That’s why gold is a good thing to have.
Gold remains a buying opportunity
According to Ing, the biggest factor behind most global economic threats is the increasing debt problems in the United States. Meanwhile, since 2008, the supply of Treasury securities has increased fivefold to more than $25 trillion. Ing draws particular attention to this situation. This fiscal year, deficit spending in the United States increased by $1.7 trillion, pushing the debt to more than $33 trillion. “America faces a debt reckoning,” warns Ing. In this environment, gold will help investors protect their capital, Ing says. Therefore, according to Ing, gold remains a buying opportunity.
Despite the growing threat, Ing says the U.S. government continues to spend money at a record pace as it pushes a transition to green energy to meet global carbon dioxide reduction targets. Ing describes the transition to green energy as a black hole. In this regard, Ing says, “Once you get in, it is impossible to get out.” says. Ing also notes that the U.S. government’s debt makes it more difficult for America to maintain stable power as the world begins to crumble in the face of two major conflicts. He explains his views on this subject as follows:
It is an uncomfortable truth that as America’s military arsenal dwindles, rearmament will become very costly. The strength of the American economy was one of the main reasons why the United States won the Cold War with Russia. It also enabled him to build a global defense giant that the Soviet Union could no longer match. America’s overconfidence led to arrogance and now complacency.
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