In 2019, gold had its best year since 2010. Peter Schiff appeared on the RT Dec. 31 and said he thinks the yellow metal should have done even better. And given the current economic conditions, he believes the 20’s will be an explosive decade for gold.
You know, the reason the US stock market went up this year is because the Fed surprised everybody by doing exactly what I had been predicting they would do. They aborted their feigned attempt to normalize their interest rates and shrink their balance sheet. They went back to rate cuts and quantitative easing. This is extremely bullish for gold.”
Gold ended 2019 up 19%. It was the best year for the yellow metal since 2010.
A strong surge during the last two weeks December pushed the gold above the $1,500 mark and it closed out the year at $1,520.90. After a sluggish fall, gold gained 3.4% in the final month of 2019.
Silver also had a good year. The white metal ended 2019 at $17.89, a 15.6% gain.
As economist Thorsten Polleit pointed out, inflation has pernicious effects on the average person, while tremendously benefiting the chosen few. Inflation the money supply is a policy intentionally carried out by central bankers around the world. Polleit calls this an “inflation scam.” With the Federal Reserve signaling that it is willing to let the inflation monster run loose, you should be prepared to see the value of the dollar erode even further in the future.
In essence, inflation facilitates a transfer of wealth from the average Joe and Jane to the politically connected. You can’t talk about wealth inequality without pointing a finger at the Federal Reserve. After all, it is the central bank that generates inflation by effectively creating money out of thin air.
Reuters has dubbed the 2010s the “decade of debt.”
The Reuters report focused on the ballooning levels of corporate debt, but consumer and government indebtedness has skyrocketed over the last 10 years as well. This massive debt bubble poses a significant systemic risk to the financial system and the economy. Some in the mainstream are starting to hint at this, but they still don’t seem to recognize the magnitude of the problem.
Gold has rallied through the last weeks of 2019 and has pushed back above the $1,500 per ounce mark. The yellow metal is on pace to finish the year up close to 18%. And there is a lot of optimism that gold will continue to shine in 2020.
As we look ahead to the new year, here are five reasons gold may well skyrocket in 2020.
If something cannot go on forever, it will stop.
This seems self-evident, but as Jim Rickards noted in a recent article about the ever-growing levels of debt, people tend to ignore this indisputable truth.
Total global debt reached a record of over $250 trillion in the first half of 2019, according to an Institute of International Finance report published in November. Global debt surged by $7.5 trillion through the first half of the year. “With no sign of a slowdown, we expect the global debt load to exceed $255 trillion in 2019, largely driven by the US and China.”
We’re less than a week away from New Years Day and I already have my 2020 resolution queued up and ready to go.
Wanna know what it is?
I hereby resolve not to make any New Year resolutions!
Gold is finishing up 2019 with a bang, pushing back above the psychologically significant $1,500 per ounce this week. Although there are a few trading days left, gold appears set to end the year with a better than 17% gain. In the last Friday Gold Wrap podcast of 2019, host Mike Maharrey takes us through a quick overview of what he considers to be the five biggest stories of the year driving precious metals.
The Fed has indicated that it won’t hesitate to let the inflation Jeanie out of the bottle. As Peter Schiff put it in a recent podcast, the central bank is willing to resurrect the inflation monster that former Fed Chairman Paul Volcker slew.
Even if the Federal Reserve wasn’t set to allow inflation to run hot, it targets 2% inflation as a matter of policy. In simple terms, the central bank intentionally devalues your money by 2% every single year.
As economist Thorsten Polleit explains in an article originally published at the Mises Wire, inflation has pernicious effects on the average person, while tremendously benefiting the chosen few. Polleit calls inflation an “inflation scam.”
The Federal Reserve is worried about corporate debt, which is ironic given that Fed policies made the corporate debt problem possible.
The Fed’s latest Financial Stability Report issued in November laments the pileup of business debt.
Borrowing by businesses is historically high relative to gross domestic product (GDP), with the most rapid increases in debt concentrated among the riskiest firms amid weak credit standards.”
