The US dollar has been considered in recent times as the strongest currency in the world. The economy of that country boasts the largest consumer market, and the dollar serves as its main trade and reserve currency.
However, after becoming the number one coin last year, it has now fallen by 0.27%. It is currently trading at $0.93 USD against the Euro and $0.82 USD against the British Pound.
But financial market volatility caused by the failure of Silicon Valley Bank has unleashed pressure among investors. In this sense, the dollar does not show many signs of strength either.
So, fearing a possible economic recession looming in the United States, various economists do not see a good outcome for the dollar. Many of them take it for granted that this currency could depreciate further.
So what would be the solution?
Therefore, such a scenario in the US economy favors investments directed towards gold and silver. This was expressed to CNN by Jonathan Rose, executive director of Genesis Gold Group.
The official also stated that long-term projections in the precious metals market could be even higher. Furthermore, regardless of the Fed’s position, few Americans have faith in a stronger dollar. Which, in this sense, provides a solid case to allocate a part of the funds to a tangible and safe asset.
In other words, it would be very difficult to find a more consistent option than precious metals to mitigate this situation.
For example, starting in the second quarter of this year, the price of silver could be boosted thanks to its application in the automotive sector. This would be in the replacement of electric vehicles by those that circulate with internal combustion engines.
In this way, and adding alternatives, the use of precious metals could take sides in the face of the economic crisis and the possible depreciation of the dollar.