Lear Capital evaluates the effects of influence, encryption and US dollar can be on gold prices

Los Angeles –

Factors such as the US government’s approach to spending and currency production and the condition of the cryptocurrency market can make an increasingly attractive investment option, according to Kevin Demreit, Chairman and Founder of the valuable Lear Capital.

Over the past decade, the national debt level in the United States – which total has increased 36.14 trillion dollars on December 31, every year, according to what he said. Data From the Ministry of Treasury and the Financial Service Office. The costs related to debt increased recently due to elements such as increased inflation.

In the past, government spending has grown during events such as 2008, which greatly adds debt level. When the Covid-19 pandemic occurred, for example, during the 2019 financial years to 2021, government spending increased by about 50 %.

The cost of preserving the national debt, as of November 2024, reached $ 169 million – approximately 13 % of all federal spending for the fiscal year 2025, according to the government’s financial data supplier.

Dimirit says constant spending can help enhance the value of gold by the end of 2025.

“It is possible that there will be a 90 % chance because we will continue to continue to obtain a trillion dollars deficit, and that the interest rates will decrease-which is usually very good for the gold market-echat market [gold] “Prices will end at $ 3,200 to $ 3,500,” says Lear Capital founder.

Create

The federal government sometimes produced a currency to meet economic needs; During the Covid-19s, for example, the Federal Reserve poured trillion from the newly created dollars in government securities to keep the markets from receiving USA today.

While the dollar is not supported by gold, the Federal Reserve can mainly create a large amount of currency as it likes – which may be problematic because cash payments can create bubbles in different asset categories, says Demeritt.

“This happened in 2000 with the Internet shares. This happened in 2008 with real estate.” Bubbles occur, then the Federal Reserve raises interest rates, and you will get broken. The height of the cycle and subsequent crash will be much greater. “

Although creating more money can make in theory bills that are already ranging in their value, gold has historically kept the value over time due to its limited availability, Demirit says.

“We can only deal with a lot of gold annually,” he says. This controls the show. It is the economy of 101. The paper money is likely to continue to decrease, [as] It has hundreds of years so far, and the price of gold may last for the increase. “

Additional investment options

Other items can have a similar attractiveness such as gold – such as US Treasury bonds, because they are less likely than some assets, such as arrows, to apostasy and respond to economic conditions.

Treasury links that have somewhat short time frames, may not provide special returns in particular. Those with longer maturity can lack the liquidity that investors may want when a shrinkage occurs.

When interest rates are low, according to CNN Business, gold can also be a more tempting option because Treasury bonds It tends to provide fewer returns In that environment.

Due to the large returns provided by the cryptocurrency market sometimes, it has also caught the attention of investors in recent years. While SEC estimated that the stock market provides an average annual return for About 10 %, Bitcoin at the beginning of 2017 was about 1000 dollars – and eventually rose to More than 19,000 dollars By mid -December of that year, according to Rate.

As with the stock market, although encryption can involve some risks. In the first quarter of 2018, for example, the Bitcoin price decreased by almost 50 %, and eventually decreased by 73 % for this year.

This does not mean that investors need to avoid the encryption market completely; However, they may want to think about including another origin in the mixture that was constantly performed over time, says Demierte – like gold, which he has The value has been preserved for decades.

“The only thing that I warn of people is that he has no busy record like Gold.” “gold [has] A busy record for 5000 years. The uncertainty in the market leaves many investors tense on how to treat some coins. We started to see the youth [who] Put a lot of faith in encryption you want to diversify [by purchasing] Real gold. “

What might be in the store for gold

Information that indicates the federal reserve issued in late 2024 that it will make it Prices discounts In 2025, according to New York TimesWhich can reduce interest rates more. It is expected that the level of federal debts will continue to increase next year, and it may reach 54.39 trillion dollars By 2034, according to one estimate.

It can add elements such as low interest rates – and high spending – to the gravity of gold. There Digital dollars, cancellation of vanishing and debts: Gold Report as the best defense “ Lear was published in mid -2014 that the high level of government debt and corresponding financial policies may threaten economic stability in the United States

The physical golden origins, according to the Leer Capital report, may be able to help some effects.

“It is difficult to predict economic courses, but it is not difficult to prepare for it,” says Kevin Demirit. Real estate, something I cannot build more from; gold – we do not withdraw much of the land, really; these types of assets must keep up with other types of investment returns, if not outperforming them. I can diversify in ways that protect my wallet and help me To reach one of these courses.