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Peter Schiff Expressed: Traders again reacted to worse than expected inflation data by selling gold. The worse inflation gets the more aggressive traders expect the Fed to get to fight it. That the Fed already let inflation get this bad proves that it won’t do anything to stop it from getting worse!
Community Response: I’ve seen you tweet this exact same formula 30+ times over the last six months. “People selling gold because they trust the #Fed”. It’s always traders or the market’s fault. When is it gold’s fault? If it can’t react to the highest inflation prints in 40 years, when can it?
Gold can never be at fault. It’s just a metal. Its price is determined by the actions of individual investors and traders. They are the ones getting it wrong, as history shows they often do. As they begin to figure it out, gold will soar.
I agree with your thesis except change gold for Bitcoin.
What he is talking about is the wealth conversion. Gold/Bitcoin/Art/Professional Skills are some of the most valuable assets to have right now in terms of future value. Not Cash.
Peter where can I buy gold, can I use bitcoin to do it?
Gold is a sinking ship; Bitcoin is growing ship. Check the return over years.
Why do you think, it’s the traders beating gold down? It could be one of the too big to fail banks.
The Fed is trapped, they can’t use their tools to fight inflation without collapsing the financial system, which would cause a deflationary depression of epic proportions and inflation is the more palpable choice.
But how long are we in this purgatory pretending the Fed isn’t. Japan has gotten away with it for three lost decades going on a fourth. The Fed thinks we can and Turning Japanese, they really think so.
Japan had next to no inflation during that period, not something that’s happening all over the world and Yen isn’t the reserve currency. Not a lot of Yen denominated government bonds.
Wait, so fiat inflation is higher than expected and that prompted Gold to be sold? As in the hedge-against-inflation-safe-haven gold? What am I missing here? Genuine question.
You’re missing the irrationality of investors high-off easy money for 20 years. They’ve all piled into the crypto/stock bubble. They aren’t looking for a safe haven. They want another hit of that stocks/Bitcoin go up in terms of Dollars.
I was being sarcastic when describing gold as safe-haven, maybe it wasn’t clear. Personally, I hold no gold and I do hold crypto. Let me enjoy my bubble. I understood your sarcasm.
Enjoy the bubble and I hope you’re not the one left holding the bag in the end.
I do hope, I will be holding the bag in the end. Time will tell who is right between us. Good luck. Boy you just have an explanation for everything don’t you? Too bad you don’t have a single correct investment call.
Come on buddy that last sentence is just blasphemous. This! It’s a bond fear bubble. Liquidity will flood out of the 119T global govt bond market one way or another.
Most of the people investing that were born after 198- have no idea what hard times even are. They think everything always goes up because it has been since they got their Robinhood apps, reality is coming laser kiddies and it ain’t what you were told it will be.
A step forward, then ten back for gold. Rinse and repeat.
