The US economy is currently tussling with financial crisis after the Great Depression. Similarly to the previous 1929 worldwide economic downturn, marked with immense bank failures and stock market collapse, the country is once again encircles with unforeseen bankruptcy of huge trusted banks and extreme market volatility.
There are many prime causes that lead to the current US financial crisis and gradually affecting the global economy. During a recent media round table discussion at Public Gold, Mr Pang Bo Fu, the President of International Consumer Federation for Businessmen in China, who foresees US to encounter a drastic economy downturn very soon.
“US economy is expected to be affected severely as US has been printing paper money far too long since 1971 without proper planning. This in return causes the depreciation of the country’s currency. Moreover, they also invested too much money in the form of bonds, stock market, and property, which will become worthless and bring down the country’s economy. Under these circumstances, only raw products primarily physical gold is the most secure form of investment and could retain its value regardless of inflation or economy slump”.
China is among one of the primary countries that invested two third of its reserve in US Dollars, mostly US treasury bonds and agency bonds. Based on English.xiahuanet.com, the current total of China’s Treasury Holdings in US Treasuries is approximately $1.2 trillion. If China were to continue investing its reserve in US treasury bonds and agency bonds, they will continue losing money. And the best solution to counter this issue is to substitute investment in bonds with physical gold.
Countries affiliated with the US treasury bonds including Malaysia are expected to land in the same scenario as what US is likely to face, which is the collapse of economy. Nevertheless, an investment in physical gold would be the most suitable form of investment to overcome the crisis.
Mr Pang Bo Fu added, “In comparison with physical gold, other resources such as petroleum, property, bonds have lower value. Everyone should start buying physical gold because it provides the best hedge against inflation or any economy downturn. Therefore, investment in physical gold is the best solution should there be any economy mishap occurs in the country. To invest in physical gold, the public can always turn to Public Gold as it provides the perfect platform for investors to invest in gold and silver”.
As what Public Gold Executive Chairman, Dato’ Louis Ng said, “Gold is the king of all. It provides the best preservation of anyone’s wealth for the betterment of the nation and its citizens”.