Peter Schiff: Inflation Will Win in a Knockout!
A lot of investors are disappointed in gold. After all, many buy gold because of inflation. Even with rapidly rising prices, the yellow metal hasn’t delivered as you might expect.
During his virtual speech for the Money Show, Peter Schiff explains exactly what is going on. He said in the end, gold will be vindicated because inflation will win in a knockout.
It’s not that we predicted inflation that never materialized. We’ve seen rising prices that rival the 1970s. But, instead of being a beneficiary of inflation, gold has been a casualty of rising prices.
Why is that and how much longer will that paradox continue?
As Peter explains, a lot of it has to do with expectations. Most investors believe the Fed will make monetary policy adjustments to fight inflation. They think the Fed will taper asset purchases and cut interest rates sooner than expected. This, of course, is negative for gold. So, every time inflation comes in hot, investors sell gold expecting the Fed to fight.
But as Peter put it, the Fed is in a monetary straight jacket. Yes, it faces an inflation problem. But any meaningful moves to fight inflation will pull the props out from under this bubble economy.
All the Fed has been able to do is talk.
For now, the markets listen. But as Peter explains, the Fed’s story is getting thinner.
There is an end game and as Peter explains, it isn’t a happy ending for the economy. Inflation will win in a knockout punch.