– ‘Mother of all debt bubbles’ keeps gold in focus
– Global debt alert: At all time high of astronomical $217 T
– India imports ‘phenomenal’ 525 tons in first half of 2017
– Record investment demand – ETPs record $245B in H1, 17
– Investors, savers should diversify into ‘safe haven’ gold
– Gold good ‘store of value’ in coming economic contraction
by Frank Holmes, U. S. Global Investors
Gold’s medium- to long-term investment case, I believe, looks even brighter. Many unsettling risks loom on the horizon – not least of which is a record amount of global debt – that could potentially spell trouble for the investor who hasn’t adequately prepared with some allocation in a ‘safe haven.’
According to the highly-respected Institute of International Finance (IIF), global debt levels reached an astronomical $217 trillion in the first quarter of 2017 – that’s 327 percent of world gross domestic product (GDP). Notice that before the financial crisis, global debt was ‘only’ around $150 trillion, meaning we’ve added close to $120 trillion in as little as a decade. Much of the leveraging occurred in emerging markets, specifically China, which is spending big on international infrastructure projects.
This post was published at Gold Core on July 27, 2017.