While commenting on an opinion piece by Bloomberg on Professor Tyler Cowen’s argument, where he opined that they yellow metal has become a cyclical asset and is no longer a useful harbinger of social and economic collapse, Otavio Costa, the portfolio manager at Crescat Capital disagreed with the notion by saying; “It is completely backward-looking and dismissive of what appears to be the early stages of gold re-emerging as the ultimate haven asset. Given the dire levels of global debt, foreign central banks are compelled to prioritize enhancing the quality of their international reserves to support their monetary systems,” said Costa in his tweet.
The expert pointed out that the central banks function similarly to traditional businesses that require high-quality assets on their balance sheets to establish financial stability.
