Community Trust ScoreVerified
Peter Schiff Shared: Gold is still under pressure as investor’s price in a Fed tightening cycle. That pressure may persist for a while longer as investors realize the Fed will actually tighten policy more than expected. But gold will explode higher once investors start pricing in what comes next.
Community Response: The Fed will tighten more than expected, but not enough to slow rising inflation. But tighter policy and inflation will weaken the economy and financial markets to the point where the Fed does an about face. The Fed will ease policy even as CPI measured inflation hits new highs.
That may be true, but ultimately gold will be demonetized by Bitcoin. I wouldn’t be surprised to see gold’s inflation-adjusted price decline by 80-90% over the next few decades.
Don’t worry you won’t be. But you will be surprised by Bitcoin’s 80-90% drop over a much shorter time horizon.
Only way gold ever out performs bitcoin again is if the world ends and the internet goes down. In which case physical gold will be king.
If civilization crumbles no one will care about a shiny rock, bottled water will the most precious commodity.
No bullets and guns will be more valuable. Gold is going to get slammed in the deflationary bust that comes after the Fed slows the Ponzi. As you know, Ponzi schemes only work with ever more manipulation. Yes, afterwards gold will rocket, but people stand to lose if they hold into what comes next.
Remember that gold is a safe haven, in this inflationary bust even bonds aren’t safe, where will investors take their money to? Gold obviously.
How are your gold stocks doing? You must be down 25-50% on them.
You said that the Fed wouldn’t fight inflation and that they wouldn’t even enter the ring. Have you changed your opinion?
Peter did say they wouldn’t enter the ring but does “entering the ring” mean tapering or does it mean actually selling Treasuries they hold into the open market? Personally, I think they end the taper and reverse course by Feb or March. Govt is on the hook for failed pensions.
Gold isn’t “under pressure”, gold, along with Eurodollar futures curve inversion are telling you a story, but you refuse to listen. Deflation ahead. Instead of peering around looking for reasons gold is not up, you’re not paying attention to what gold is signalling, loud and clear.
Now the bitcoin is going down and GOLD is heading up. It is amazing how similar gold bugs and Bitcoiners are. They just don’t realize it. Both are closing their eyes and holding their breath thinking the more they say their asset will go up, the more it will go up.
Not shore if you are aware. There is AI coming. Driverless cars, Electric cars, Quantum computers. Why would we still use gold as store of value? It doesn’t not make sense in a digital world.
We are in one heck of an economic crisis when the Feds of all western economies are this hamstrung. The best asset class is real property over gold.
Peter the fact that the debt is so much larger than it ever was wouldn’t a smaller change in the rate have a more magnifying impact?
Only on the economy and financial markets, not inflation.
Also, a weakening economy will actually make it harder for the Fed to reduce inflation, not easier!
Hey Peter. Do you follow JeffSnider_AIP? You should debate him. He explains things much better than you do. I would like to see you explain your thesis in a debate with Jeff.
One point Jeff makes is long-term yields primarily measure implied growth-inflation vs deflation.
If foreign USDs aren’t being lended out by foreign commercial banks then inflation cannot last because that would create a USD supply shortage. The Fed does not control these USDs. One more tid-bit. Euro$-LIBOR yield curve is inverted as of December. That does not mean inflation.
Gold is an inferior monetary asset to #Bitcoin. Absolute digital scarcity need only be invented once. The other cryptos are utility tokens with small total addressable markets. Alt coins are to Bitcoin as other metals such as silver, copper, etc. are to gold.
Gold will be under pressure for another decade while all the monetary premium migrates to bitcoin and all that’s left is its industrial value. People will scratch their heads why they’ve been holding an IOU for a piece of metal and lost most of their wealth.
Because gold is highly manipulative, centralized and just a mere imagination. There’s no available metrics to track mined gold and where each one goes. All they do is assume and make it appear real in the public. In short, gold is state-controlled asset.
