Holiday gone! We got out of Mozambique just before the floods and we are back at work.
Local markets are up 48.03% for 12 months and is being driven by resources, gold, silver and platinum. Gold is at $5,281 at the time of writing and has done 84.70% in 12 months. Gold has shot up because of a couple of factors being:
1) Major unrest in the world Middle East, Ukraine / Russia, Pakistan / India, Trump Tariffs’, Riots in America throwing out immigrant and U.K / EU chaos with immigrants and Brexit fallout.
2) Countries have to have reserves which must not be in their own currency. These reserves are there to stabilize your country and provide security when dealing with other countries in trade loans or any other form of international financial transactions.
These resources were mainly held in USD.
Now because of Trumps tariffs and their uncertainty of the dollar these countries are getting rid of the dollar and buying gold as a reserve currency. So by selling dollar they are weakening it (what Trump wants). And by buying gold, it is pushing the gold price up.