Gold pushed above $2,000 an ounce for the first time ever on Tuesday.
The spot price broke through $2,000 a little after noon and then immediately sold off over the next 10 or 15 minutes. In a tweet, Peter Schiff said, “You know the gold bull has a long way to run when the first reaction traders have to finally breaking above $2,000 is to sell.”
After the June Federal Open Market Committee (FOMC) meeting, Fed Chair Jerome Powell committed to “do whatever we can, for as long as it takes.”
Nothing has changed — the July meeting was rewind and replay.
For years, Peter Schiff has been warning about a dollar crash and the end of the greenback’s role as the world’s reserve currency. Suddenly, the mainstream is starting to see that possibility as well.
In a recent research note, Goldman Sachs warned that the dollar’s role as the world reserve currency is at risk.
According to a Bloomberg report, the US Mint complex in West Point, N.Y., is taking measures to reduce the spread of COVID-19 among its employees and expects production slowdowns for the next 12 to 18 months. According to a US Mint document, the facility can no longer simultaneously produce both gold and silver coins, forcing it to choose one metal over another.
Gold broke through $1,900 on Friday morning and kept pushing upward, setting an all-time record during Asian trading hours on Monday.
Gold was trading as high as $1,944 an ounce early Monday.
The previous record price for gold came in the third quarter of 2011 at just over $1,920 an ounce.
Permanent business closures are rising as the economic impacts of the coronavirus-induced government shutdowns continue to ripple through the economy.
This is yet another sign that the promised “v-shaped” economic recovery will likely never materialize.
The world is drowning in debt.
And central bank policies globally are encouraging even more borrowing. Most people don’t seem to care. “This is necessary during this time of crisis,” has become the mantra. But the ugly truth is the world was already drowning in debt before the coronavirus pandemic. The government response to COVID-19 has merely exacerbated the problem. And it’s important to understand that debt is neither free nor irrelevant.
Last week we reported on a looming wave of evictions on the horizon as the economic consequences of the coronavirus-induced government economic shutdowns begin to rear their ugly heads. Now for more gloomy news, there are also signs of trouble in the mortgage markets.
Mortgage delinquencies soared at a record pace in April. And that was toward the beginning of the pandemic’s economic impact.