There are many wars being waged right now: the war on terror, the war on drugs, the war on women (?), the war on raw milk, and the war on cancer. The United States government loves war. But there are several financial wars transpiring or, at the very least, about to unfold.
For years, there has been talk of a currency war, but with monetary and foreign exchange policy becoming a major sticking point for the current White House, it could finally happen. And, considering the stubbornness of the incumbent administration, the country might be in for a long ride.
Should China, the United States, or Europe pull the trigger – whatever that trigger may be – then protect yourself. But how? Deutsche Bank is recommending the age-old real form of money: gold.
According to Deutsche Bank strategist Alan Ruskin, investors should hold gold to shield themselves from the possible currency war and forex intervention.
“With a currency war most likely to be fought on USD/CNY and EUR/USD terrain, one approach would be to steer clear of the direct conflict. By far the most direct and simple way to trade the complexities of a currency war is by going long gold,” he wrote in a research note on Monday.
“If (to our surprise) intervention is enacted on a scale that goes far beyond past interventions, and is timed to go with Fed rate cuts, it would be significant in reinforcing a dollar top.”
Gold has dominated the business news cycle as of late, topping multi-year highs.
Year-to-date, gold is up 11 percent to $1,420, the highest it has been since early 2013.
Gold was over $1,900 in 2011 and people who purchased it at that price, are still waiting to break even. If the people who purchased gold at that time would of invested that money in the stock market they would have made plenty of money. FOOLS GOLD???