With government debt levels at historic highs and inflationary pressures lingering, fiscal dominance is reshaping the global monetary landscape. Central banks are increasingly caught in a delicate balancing act – controlling inflation, while also managing the burden of sovereign debt and excess liquidity. At the same time, the US dollar’s role as the world’s primary reserve currency is facing growing scrutiny. Amid this evolving environment, gold is reasserting itself as a trusted store of value.
In the latest episode of The Allan Gray Podcast, Horacia Naidoo-McCarthy, manager in the Institutional Clients team, hosts portfolio manager Thalia Petousis and investment analyst Umar-Farooq Kagee to explore a wide range of themes – from the recent gold rally to fiscal dominance and safe-haven assets. They also interrogate the question: Is the gold rally simply history repeating itself, or are we seeing a structural shift?