Currency debasement is coming - JPMorgan
JPMorgan on what's coming next
The combination of massive fiscal and monetary stimulus will lead to currency debasement and the winner will be gold prices, according to a report from JPMorgan.
Gold is down $27 to $1720 today after hitting an 8-year high at the start of the week. The weakness today comes after it was revealed that Russia's central bank bought no gold in April.
"Those who see in the major currencies just different shades of the same long-term liabilities should simply remain long the world's legacy reserve currency - gold," they wrote, warning that debasement is a "high likelihood."
On the FX side, they warn that growth will stay weak and that inflation and currency debasement will be an extended process. They say the Swiss franc and yen should outperform.