David Morgan Warns: Dollar Crash Looms as Cryptocurrency Collapse Shocks Speculators
The comments below are an edited and abridged synopsis of an article by Arsenio Toledo
As cryptocurrency continues to slide, other investments will follow, leading to the crash of the US dollar. Now is the time for people to invest in precious metals.
Precious metals expert David Morgan says that everything is down, but the game in the financial market now is to invest in something that will lose the least and come out better in the end. To that end, he suggests precious metals.
Morgan used the Great Recession of 2008 as an example. After the crash, there was an economic slowdown. Gold rose considerably; in 2008, gold increased by 5.6%. In 2009 and 2010, it surged by 23.4% and 29.5%, respectively.
As of May 16, gold was nearing a 4-month low. Gold futures were around $1,804. As Morgan said, one of the primary causes driving gold’s weakness was the strength of the US dollar. That, coupled with concerns of increased interest rates from the Fed, drove down gold demand.
Gold is notable for its sensitivity to the Fed raising its interest rates, which increases the opportunity cost of holding on to non-yielding bullion. But gold is also an excellent hedge against inflation and a safe investment to purchase during times of economic turmoil.
While some don’t expect gold to begin gaining until after the summer, it is a good idea to invest in precious metals soon, as the dollar will likely experience a downward trend in the latter half of the year.