To Be Or Not To Be: How Evergrande Crisis Can Affect Gold – Investing.com

To Be Or Not To Be: How Evergrande Crisis Can Affect Gold – Investing.com

Evergrande is on the brink of bankruptcy. Will gold prices collapse together with the real estate developer or benefit from its default?

Generals are always prepared to fight the last war, while economists are always prepared to fight the last recession. But what if the next economic crisis doesn’t start in the U.S. financial sector, but in China’s real estate?

Naturally, I refer to Evergrande, a Chinese developer with total liabilities of more than $300 billion — around 2% of China’s GDP! A default of one of China’s largest and most indebted companies could entail significant repercussions for the global economy.