The coronavirus has once again proved that the greenback is the most reliable safe-haven asset during financial turmoil. It is no wonder that demand for the US dollar has been growing for the past couple of months. Indeed, the majority of investors are trying to save their money exchanging it for hard currency. The next security level for those who hold their assets in dollars is gold. This is a perfect option for US dollar billionaires who are also concerned about their financial future. The most influential American banks recommend that such clients invest in gold. The issue is not that banks perceive this precious metal as attractive amid the crisis or as a way to generate profit. Rather, the banks view gold as a provider of stability. In the midst of uncertainty, gold appears to be more reliable compared to any banknotes. Analysts at JPMorgan negatively assess the consequences of the unprecedented monetary and fiscal measures that are being taken almost all over the world. Such an amount of easy money is likely to cause weaker and long-term growth and depreciation of the currency therefore supporting the price of gold. In addition, the White House policy has significantly increased geopolitical risks for the greenback and the entire US financial system. According to JPMorgan, Washington’s opponents are now having technological opportunities that threaten US hegemony in the financial sector.
