Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

The Fed Can’t Print Gold

  by    0   4

The mainstream just went super-bullish on gold.

Bank of America raised its 18-month price target to $3,000 per ounce in a report titled, “The Fed Can’t Print Gold.”

BoA was already pretty bullish on the yellow metal, forecasting a record $2,000 per ounce within the next year-and-a-half.  According to a report released by the bank upping that projection, the vast amount of fiscal and monetary stimulus unleashed by central banks globally will likely drive gold higher. The report said, “financial repression is back on an extraordinary scale.”

As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure. Investors will aim for gold.”

Bank of America called gold “the ultimate store of value.”

We’re already seeing significant demand in the gold market with shortages on many bullion products and gold holdings in ETFs hitting record levels.

Central banks around the world are creating trillions of dollars out of thin air. In March alone, G-7 central banks bought up nearly $1.4 trillion of assets. As the BoA report noted, governments and central banks are also socializing risk through their actions.

As central banks rush to expand their balance sheets and backstop the economy, a lot of risks could effectively be socialized, boosting the appeal of gold.”

Back in March, Peter Schiff predicted a rush to gold, saying that “the dollar is cooked.”

Peter said that with the central bank and government response to the coronavirus, hyperinflation has gone from being the worst-case scenario to the most likely scenario. If that comes to pass, gold will go through the stratosphere.

Right now, the demand for dollars and dollar-denominated assets remains high. But how long will that last once the printing press gets fired up?

“What the Federal Reserve has basically told the world is if you’re an owner of US Treasury bonds, you need to sell them to us because we’re going to buy the entire bond market,” Peter said in an interview with Fox Business.

Peter thinks investors will eventually start dumping dollars.

Nobody can hold dollars. Nobody can hold any bonds denominated in dollars. This is now like a game of musical chairs where nobody wants to get caught with dollars when the music stops playing.”

And when that happens, what will they buy?

Gold.

What else are they going to do? I mean, what are they going to use as an asset? They’re not going to just swap dollars for euros or swap dollars for yen. They’re going to just buy gold.”

WhyBuyGoldNowBanner.070815.590

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Trade Deficit Grows for Second Straight Month as Dollar Weakens

A shrinking trade deficit was the primary reason GDP jumped in the third quarter. But that trade deficit relief is already reversing. The October trade deficit swelled to $78.2 billion, a 5.4% increase. It was the second straight month of trade deficit growth.

READ MORE →

Central Banks Start Q4 Buying More Gold

After adding a historically high amount of gold to reserves in the third quarter, central banks kicked off Q4 buying more gold. According to data compiled by the World Gold Council, central banks globally added another 31 tons of gold to official reserves in October.

READ MORE →

Investors Fleeing Housing Market as Bubble Deflates

In another bad sign for a housing bubble that is quickly deflating, investor purchases of single-family homes tanked in the third quarter. Meanwhile, overall home sales continue to tumble and prices are falling.

READ MORE →

Consumer Confidence Declines for Second Straight Month

The powers that be keep telling you that the economy is fine and inflation has likely peaked. But you’re not buying the story. Consumer confidence fell for the second straight month in November as worries about inflation and the trajectory of the economy persist.

READ MORE →

Recession Warning: US Small Businesses Struggling to Pay Rent

In another sign of a struggling economy, small businesses are having an increasingly hard time paying rent. According to Alignable’s November Rent Poll, 41% of US small businesses reported they couldn’t pay their rent in full and on time in November. That was a 4 percentage-point increase from the previous month.

READ MORE →

Comments are closed.

Call Now