Tuesday, October 6, 2015
Peter Schiff – Gold Will Breakout as Rate Hike Myth Dies
0:04 – Friday’s jobs data was much worse than the consensus forecast.
0:30 – Gold and silver rallied on the news, with silver trading at a 3-month high on Monday morning.
1:15 – Gold will follow silver’s lead and break out to new highs. Bearish speculators have been keeping the price down, because they believe higher interest rates are coming.
2:00 – Even if the Fed raised interest rates, there is no historical evidence that this would be bearish for gold.
3:00 – Janet Yellen’s rate hike pace would be even slower than the pace Alan Greenspan raised rates, which was very bullish for gold.
4:10 – Friday’s economic data will mark the beginning of the wake up call to gold bears that the Fed is not going to raise rates.
4:52 – Even though QE3 was not bullish for gold, QE4 would be a completely different situation.
5:44 – The dollar is not going to have all the support of emerging market economies like it did during previous rounds of QE.
7:03 – Goldman Sachs is now saying the Fed is more likely to raise rates in 2017.
7:28 – There’s a good chance that Q3 GDP could be negative, which means the United States could easily be in a recession by the end of 2015.
8:08 – The Fed has probably made the same mistake it did before the housing crash, overestimating the strength of the economy just as it was about to slip into a recession.
Labels: Peter Schiff