According to the billionaire, the US dollar can no longer be seen as a safe asset to store their savings in it. Nobody wants to buy American government bonds anymore, and printing of fiat money, which is not backed by anything, will continue. This is why the purchasing power of the dollar continues to decline.
According to the expert, the stock markets are now so overheated that they have already become detached from the real economy, and in no way reflect the real situation in the world. He believes that this "party" is in the last stage of its development, and sobering up will be tough, and it will not be long to wait for it.
Economies in many countries around the world are in recession, and it will take a very long time before they can recover from the negative effects of the spread of Covid-19. There will be no return to the old life, even if many market participants still do not understand this. The stock markets will continue to move sideways for many decades. The situation in the debt markets is even worse.
Frank Gistra advises investors against buying government bonds and keeping large amounts of cash. Inflation, which will rise in the coming years due to the limitless printing of money, will gradually depreciate fiat currencies. In this situation, gold can come to the rescue. This is perhaps one of the few assets that can protect your wealth from destruction.
In his opinion, it is necessary to buy gold right now, since its value is still very far from the maximum values ​​that await us ahead. Panic buying can act as a trigger for the continuation of the uptrend in the gold market, so you can prepare for it in advance. According to Frank Gistra, other commodities will also be on top in the coming years compared to other assets.