Gold pushed above $1,800 last week, although it wasn’t able to hold that level through close on Friday. The yellow metal finished the week around $1,799 an ounce. But on his podcast Friday. Peter Schiff said there was nothing bearish about the yellow metal not holding $1,800 on a weekly basis. In fact, overall, the chart for gold looks fantastic.
Last month we reported that the Chinese government has launched a pilot program for a digital version of the yuan. The virtual currency ups the ante in the war on cash and creates the potential for the government to track and even control consumer spending.
China isn’t alone in using COVID-19 as an excuse to push people away from physical cash. Other countries are pushing narratives to drive the movement toward a completely digital economy – one where governments can track and even control what we buy. The war on cash has been going on for years, but the pandemic has put efforts on hyperdrive.
If history is any guide, we could be heading toward $4,000 gold. This according to analysis by US Global CEO Frank Holmes.
Over the last couple of months, we’ve been arguing that we won’t see a dramatic “v-shaped recovery.” Even if we cure COVID-19, it won’t cure the economy. But the mainstream has remained optimistic. In his podcast Friday, Peter Schiff points out some of the ways the whole v-shaped recovery narrative is falling apart.
Gold staged a solid rally and finally broke above a key resistance level this week. The yellow metal hit an 8-year high on Wednesday and continues to hold above $1,750 an ounce. Meanwhile, we’re suddenly starting to see some mainstream bullishness for gold. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about the economic dynamics in play and highlights some of the mainstream attention suddenly being showered on the yellow metal.
A lot of people still have faith in the dollar. Some people even believe the dollar is set to rally. Santiago Capital CEO Brent Johnson is one of those people. He bases his dollar bullishness on what he calls “the milkshake theory.” In his podcast this week, Peter Schiff explained why the milkshake theory is all wet.
Even the mainstream is getting bullish on gold.
Goldman Sachs now forecasts record gold prices within the next 12 months.
Goldman analysts say gold will likely reach $2,000 per ounce within the next year thanks to ultra-low interest rates and concerns over currency debasement.
Last week, we reported Yale economist Stephen Roach’s warning that “the era of the US dollar’s ‘exorbitant privilege’ as the world’s primary reserve currency is coming to an end.”
Roach isn’t the only person in the mainstream sounding the alarm about the dollar’s demise. In a note published last week, Guggenheim Investments Chief Investment Officer Scott Minerd said that while “there are no signs the world is questioning the value of the US dollar” right now, it’s clear that the greenback is “slowly losing market share as the world’s reserve currency.”
The Federal Reserve met this week and promised to keep pumping out monetary stimulus indefinitely. Meanwhile, the US government added another trillion dollars to the national debt in just 35 days even as the president and congressional leaders talk about more fiscal stimulus. In this week’s Friday Gold Wrap podcast, host Mike Maharrey talks about the ramifications of all this endless stimulus and reminds us that what can’t go on forever, doesn’t. He also covers the week’s ups and downs in the gold market and reveals that the May unemployment report appears to be fake news.
Peter Schiff has been warning that that real crash will be a dollar crash. Now, some people in the mainstream are starting to sound that alarm as well.
Even before the coronavirus pandemic, Peter was warning about the dollar’s demise. During an interview on RT last September, he warned that America’s “fiscal profligacy” was going to sink the dollar.