A lot of people still seem to think the economy will fire right back up and things will snap right back to normal when the government-imposed coronavirus lockdowns end. I don’t believe we’re going back to normal for a number of reasons – primarily because things weren’t normal before coronavirus. The economy was a big, fat, ugly bubble. Coronavirus was a pin that popped the bubble.
But even if things were normal before the pandemic, the economy still wouldn’t just fire back up and restart on a dime.
Gold took a hit on Tuesday but held a key support level and rebounded as the week went on, even as stocks set new records. Why does gold continue to keep showing strength even with all the headwinds? Is it just coronavirus? Or is something else going on? Host Mike Maharrey talks about it in this week’s Friday Gold Wrap podcast.
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.”
While investors often treat gold as a commodity, at its core, gold is money. Silver also has a long history as a monetary metal. But what about other rare metals? Could they serve as money as well?
In the following guest column, SchiffGold client Antony Pouros makes the case for platinum.
Gold is money. Gold has been money for thousands of years. And one of the reasons gold is money is because it’s immutable.
Does gold still matter?
A lot of people dismiss gold and precious metals as irrelevant to the world monetary system. But how can money be irrelevant?
Liechtenstein-based Incrementum AG managing partner Ronald-Peter Stöferle joined Mises Institute president Jeff Deist to talk about all things gold, including why it is still money and an important part of the global financial system.
Remember when Bitcoin was knocking on $20,000? Today it’s it’s in a freefall, trading in the $6,000 range.
Crypto markets tumbled again last week after Japan’s financial regulator ordered several cryptocurrency exchanges to beef up anti-money laundering practices. The move prompted the country’s largest crypto exchange to suspend creation of new accounts. Bitcoin fell nearly 9%.
Why should you buy gold?
A report published this week by the World Gold Council pinpoints four key reasons.
Gold is a highly liquid yet scarce asset, and it is no one’s liability. It is bought as a luxury good as much as an investment. As such, gold can play four fundamental roles in a portfolio.