Market insights and analysis

How dynamic, risk-managed investment solutions are performing in the current market environment

1st Quarter | 2022

Market insights and analysis

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Updates on how dynamic, risk-managed investment solutions are performing in the current market environment.

Last week, the price of gold broke above $2,000 per ounce and then retraced back to its 50-day moving average. The metal closed the week at $1,934.30 per ounce.

Matterhorn Asset Management recently offered a compelling perspective on the rapid changes in the global monetary system: “Recent sanctions and the ‘militarization of money’ designed to target Russia are in fact hurting the West in equal, if not greater, measure, especially with regard to the weakening prominence of the USD and euro.

“As Putin moves to trade more in RUB, other nations, including China and India, will tilt ever more toward de-dollarization in future agreements as global trade becomes increasingly multi-polar and multi-currency.

“Sanctions confirm that the USD is no longer a neutral currency, but rather a highly politicized weapon. … The world is now recognizing the growing likelihood of de-anchoring from the USD as a world reserve currency. …

“… Trust in fiat currencies as a whole is falling and thus forcing the inevitable issue of a needed (as well as neutral and real) asset like gold to partially cover future currencies as the global monetary order drifts toward a new era.”

Gold could become the anchor of a new currency basket that will be used in the emerging Eurasian economic system.

Rick Andrews is president of Avant Capital Management.



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