Billionaire investor Ray Dalio is telling other investors that, historically, now is a beneficial time to buy gold. “When hot wars happen, classically it pays to sell out of debt and buy gold because wars are financed by borrowing and printing money, which devalues debt and money, and because there is a justifiable reluctance to accept credit,” he wrote in a LinkedIn commentary. While the Russia-Ukraine conflict has many looking at their portfolios, it also has experts debating whether the dollar’s demise as a reserve currency is imminent.

 

MarketWatch/Jonathan Burton
Billionaire Ray Dalio Has Two Looming Concerns About Ukraine That Should Worry Every Investor

Ray Dalio said he believes that Russia’s invasion of Ukraine is a serious threat to the established postwar world order and leaves him with two worrisome concerns: Will this war spread beyond Ukraine to involve NATO, and how will China respond?

Dalio is the founder, co-chief investment officer and chairman of Bridgewater Associates, the world’s largest hedge-fund firm, and author of “Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail,” which addresses the often-extreme shifts that reshape global politics and financial markets time and again throughout history.

In a commentary posted on LinkedIn late Tuesday, Dalio wrote that the economic sanctions Europe and the U.S. have imposed on Russia and its financial system will take a heavy toll on the Russian economy, at minimal cost to NATO countries. The sanctions could even bring political change at the top to Russia, he added.

“The economic pain that Russians will feel will be so bad that it would be surprising if there wasn’t big internal opposition to [Russian President Vladimir] Putin’s policies that could threaten or topple his regime.”

You can read the full article, here.

 

Yahoo Finance/Javier E. David
Russia-Ukraine the end of dollar dominance? Don’t bet on it

Is the U.S. dollar over as a reserve currency?

That is one of several takeaways from the increasingly anfractuous conflict between Russia and Ukraine. A flurry of heavy-handed sanctions has isolated Moscow, and may yet ricochet across the global economy in unexpected ways (not the least of which includes inflation spurred by skyrocketing energy prices, and fears surrounding Russian supply).

The debate over the morality (and feasibility) of blockading Russia has amplified another debate that’s brewed for years. Namely, can the greenback maintain its superiority over other currencies as the reserve instrument of choice?

You can read the full story, here.

 

Reuters via CNBC
Palladium scales 7-month peak, gold firms as Ukraine crisis rages on

Palladium raced to an over seven-month peak on Thursday in a rally sparked by concerns over supply from top producer Russia, while a relatively less hawkish Federal Reserve and safe-haven demand due to the Ukraine crisis boosted gold prices.

Spot palladium, used by automakers in catalytic converters to curb emissions, jumped 4.1% to $2,778.48 by 1030 GMT, rising for a fourth session to hit its highest since mid-June 2021.

“The airspace closure is disrupting exports from Russia,” with buying from both investors and consumers supporting palladium prices, UBS analyst Giovanni Staunovo said.

Western nations have piled sanctions on Russia for its invasion of Ukraine, which accounts for 40% of global palladium production.

Read the full story, here.

 

 

 

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