March 31, 2020 

Gold: All-time high could be reached – iTrustCapital

https://www.fxstreet.com/news/gold-all-time-high-value-could-be-reached-itrustcapital-202003311009

Tim Shaler, Economist-in-Residence at iTrustCapital, says in an exclusive interview with FXStreet the yellow metal could hit all-time high value.

Key quotes

“The all-time high value of gold in USD terms is $1895 per ounce, reached in 2011.”

“If the US continues to borrow and print new currency for an extended amount of time, whether to get us through this current crisis or the next one, then gold could approach its all-time high value in US dollar terms.”

Preservation of wealth is cryptocurrencies’ primary use-case – iTrustCapital

https://www.fxstreet.com/cryptocurrencies/news/digital-currencies-have-as-their-primary-use-case-the-preservation-of-wealth-itrustcapital-202003311034

Tim Shaler, Economist-in-Residence at iTrustCapital, thinks cryptos serve as a preservation of wealth, according to an exclusive interview held with FXStreet.

Key quotes

“We have a working hypothesis that Bitcoin and other digital currencies do still have as their primary use-case the preservation of wealth. However, we believe the dominant users of digital currencies as a store of wealth are now in countries with tight capital controls such as China, Iran, and Venezuela.”

“Now that oil is less than $30 per barrel, there may be heightened geopolitical risk stemming from oil producers less able to sustain social spending.  We are specifically concerned about Venezuela, Russia, and Iran. If geopolitical risks rise, we believe we may see new buyers come into the digital currency markets.”

The US might be tempted to depreciate USD when new debt has to be repaid – iTrustCapital

https://www.fxstreet.com/news/the-us-might-be-tempted-to-depreciate-the-usd-when-the-new-debt-has-to-be-repaid-itrustcapital-202003310945

Tim Shaler, an Economist-in-Residence at iTrustCapital, believes the fiscal stimulus package passed by the Senate last week weighed on the USD, as he explains in an exclusive interview with FXStreet.

Key quotes

“The falling dollar and the very quickly rising stock market on Tuesday, Wednesday and Thursday last week were all driven by speculation and passage of the $2 trillion fiscal stimulus package.”

“The US is about to borrow $2 trillion more dollars than previously expected, foreign exchange participants know that the US might be tempted to allow its currency to depreciate when all this new debt has to be repaid. That risk was immediately ‘priced in’ and the value of the dollar declined.”

“If the US pursues a ‘strong dollar policy’ then the dollar may again rally against other currencies.”