Andy Schectman, president of Miles Franklin, spoke to the Investing News Network about the continuing de-dollarization trend, which he sees as being led by the weaponization of the US dollar and efforts to go green.
“The rallying cry that’s pulling all of this together is the weaponization of the dollar, and I would also argue the fact that we signed an executive order to go green … we have in essence told the Saudi kingdom and OPEC, who gives us the dollar hegemony by pricing oil in dollars, that we’re going to go green pretty soon, and if you’re on the wrong side of us we’re going to sanction your funds,” he said at the Vancouver Resource Investment Conference (VRIC).
Explaining the concept of logarithmic decay, Schectman said he believes diverse forces are chipping away at the US dollar’s dominance. Its decline will happen slowly before taking a nosedive all at once.
Gold will benefit from these circumstances in the long term, but its 2024 trajectory is harder to pinpoint.
“What I will say to you is this — it’s now January. In October, you have the BRICS meeting, where they’re going to announce which countries have been admitted, and maybe even a commonly backed currency. (That’s) one month before the election that will reshape the world. And I would say to you the likelihood of having something happen with gold grows by the day as we get closer to these two very, very landmark, pivotal decisions,” Schectman said.
He also discussed the concept of diversifying within a primary trend, saying that diversifying too broadly is dangerous.
“I think the way to do this is to identify the primary trend. And if the primary trend is of increasing of commodities, and you take a very big position within it and broadly diversify within that sector … that gives you a broadly diversified representation of the primary trend,” Schectman explained, pointing to uranium, silver and copper as examples.
Watch the interview above for more on what Schectman sees coming in 2024 and beyond, as well as how to position. You can also click here for the Investing News Network’s full VRIC playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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