Gold has a key role in revolt against US Dollar – American investor & Market Expert Ruchir Sharma

Washington: ‘Gold is recognized as the oldest and most traditional asset used for investment worldwide. The world’s central banks are currently using this gold as a means of rebellion against the US dollar. Earlier, the dollar and gold were known as safe havens for investment. But now gold is considered safer,’ claimed American investor and economist Ruchir Sharma. Sharma also pointed out that the US and partner countries’ use of sanctions as a weapon was the main reason behind the increase in gold’s trend.

Moreover, Ruchir Sharma is the head of the company ‘Rockefeller Capital Management’ in the United States and before that, he also held an important responsibility in the leading financial institution ‘Morgan Stanley’. A few years ago, he also established an investment company called Breakout Capital. On the list of ‘Top Global Thinkers’, Sharma has written four books on the global economy and is known as an expert on the subject of ’emerging economies’.

In an article written in the leading daily ‘Financial Times’ a few days ago, he claimed that gold is being used against the US dollar. ‘The prime example right now is gold, up to six months. Surging demand is not led by the usual suspects – investors, large and small, seeking hedge against inflation and low real interest rates. Instead, the heavy buyers are central banks, which are sharply reducing their dollar holdings and seeking a safer alternative,’ Sharma informed in his article.

Furthermore, the rising enthusiasm for buying gold has pushed gold prices close to record levels. Based on interest rate forecasts, gold prices have seen a 50 per cent rise over what was expected. Any new thing encourages the rising prices of gold’, Sharma presented his position regarding the increase in the price of gold.

Meanwhile, Ruchir Sharma also warned that there is no alternative to the US dollar as a global reserve currency. This overconfidence can be dangerous for the US. Sharma said China’s regime is the ‘last line of defence’ for the US dollar. ‘When the dollar is being challenged by gold and digital currency, efforts should be made to increase confidence in it’. The head of ‘Rockefeller Capital Management’ has also advised that the United States should avoid assuming its position as an economic superpower.

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