Shiels added that she is also bullish on gold as the yellow metal continues to dominate currency markets. She noted that gold has hit record highs in all major currencies except the U.S. dollar.
She added that it is only a matter of time before the U.S. dollar becomes the next shoe to drop.
“Gold is a reliable hedge against growing U.S. debt,” she said. “Enormous deficits bring into question the role of fiat currencies.”
Looking at silver, although Scotiabank is bullish on the metal, Shiels is not as upbeat as she is compared to gold.
The bank sees silver prices averaging the year around $19 an ounce.