US national debt is the driver of gold growth

John Hathaway of Tocqueville Management believes that a possible recession in the US economy could lead to a significant increase in the country's public debt. In this case, gold will be even more in demand to save capital from depreciation.

The national debt of the United States is currently 21.9 trillion. dollars. This means that for every resident there is $ 66,000 of debt. Thus, the national debt is 105.7% of the state’s GDP. States are among the largest debtors in the world.

The demand for US government bonds is declining, although it should be at a high level, the expert believes. In his opinion, not only the growth of the US government debt is a problem, but also the danger of a downward trend in the stock market, which was last observed in the 1970s.

Gold will help investors protect their assets before the upcoming US debt crisis. The yellow precious metal allows you to save savings from depreciation during crises.