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Gold Remains Sound Money – Reversal of Yield Curves is a Bad Omen

Market participants are still unsettled by the signs that the inversion of the repo market in the U.S. means. Do the signs point to a recession? According to some major investors, they do. Best-selling author and well-known investor Robert Kiyosaki sees the inversion of the repo market as a sign of recession.

He also predicts that the US dollar is on the verge of extinction and that there will be an economic crash. To be precise, Kiyosaki predicted the same thing last year, but nothing has happened since. Still, the signs point to a recession. The last time the yield curves of the 2 and 10-year U.S. Treasury notes were inverted was in 2008. Moreover, at the moment the war in Ukraine is causing Western nations to impose sanctions on Russia, but they are doing themselves a great disservice.

In such uncertain times, it is advisable to seek a safe haven such as gold or silver. Real estate is also a solid investment in such times. The rise in commodity prices and historically high inflation around the world are signs investors should watch out for. Even though gold prices have reached new highs, investors should not be fooled. During the hyperinflation in the Weimar Republic, the same thing happened. People sold their gold after the price of gold continued to rise against the paper mark. But they did not understand what was happening in the background. Faster than they realized, their paper stamp was losing half its value every day, at an accelerating rate.

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