Withdrawal from the dollar: Gold and Bitcoin on the rise – experts warn!

Withdrawal from the dollar: Gold and Bitcoin on the rise – experts warn!

Ed Lopez, the head of product at VanEck, recently outlined alarming trends in the global financial landscape. With the current massive retreat from the US dollar, analysts are observing a significant shift of capital into other asset classes. The reasons for this are diverse and strongly linked to geopolitical developments. According to Lopez, “geopolitical alerts” are a key driver of this turnaround, which affects both institutional and retail investors. More and more market players are seeing the uncertainties surrounding the US dollar and the economic prospects in the US as an incentive to diversify their capital.

A clear example of these developments can be found in the US decisions to exclude certain countries from the SWIFT system. These measures have triggered a chain reaction by forcing affected countries to review their foreign reserves and look for alternatives. This leads to increasing demand for gold and other valuable raw materials. Lopez highlights that as a result, central banks have started buying gold in large quantities to secure their holdings and protect themselves against potential economic instability.

Investment strategies in focus

Given these trends, institutional investors recognize the beginning of a depreciation of the US dollar. This has led to increasing interest in precious metals, emerging markets and even Bitcoin. These asset classes are viewed by investors as safe havens to protect and potentially grow capital during an uncertain time. Lopez sees attractive investment opportunities, particularly in emerging markets. These markets often offer better fundamentals and lower deficits, making them attractive for long-term investing.

In addition to investing in precious metals and digital currencies like Bitcoin, Lopez is also seeing increasing interest in bonds, particularly in emerging markets less affected by the global financial crises. This rethinking of investment strategy could have a significant impact on future market dynamics and revolutionize the way investors operate globally.

The developments show that the US dollar is coming under increasing pressure and it may be advisable for investors to further diversify their portfolios. Geopolitical tensions, coupled with economic uncertainties, are ushering in a clear trend towards stronger, more stable currencies and precious metals.