Peter Schiff is seeing reduced gold purchases and warns investors not to chase the markets which have been trending higher for many years. Schiff is predicting a higher trade deficit in next month’s report. As usual, Schiff cites numerous weak economic data points that have surfaced in recent weeks.
Schiff Predicts Recession amidst Reduced Gold Purchases
Peter thinks the market may be figuring things out as the U.S. dollar pauses from its rally despite a June rate hike being baked in. With regards to the GDP, Schiff is skeptical, explaining,
“The Trump Administration is continuing to pretend that once we pass all of our legislation, once we get all our players on board, once we get tax reform, once we replace Obamacare, once we get infrastructure, once we do all this stuff, well then we’re going to get all this growth.”
Schiff thinks all these things will come after the recession hits and more stimulus is deployed. Peter points to the U.S. Dollar not making new highs, as a negative sign given the markets and sentiment being so high.
Schiff spends some time talking about gold around the $1,200 mark and why technical analysis does not always work. Gold is hanging on to key support, despite failing to break out above $1,300. Schiff explains that gold is still beating the US markets this year and that it will continue to do so.
Finally, the forecaster warns investors not to chase the market. Many Republicans who loved gold and feared the markets when Obama was in power, are now selling gold and buying stocks. Schiff is also seeing gold purchases decline. Schiff spends about ten minutes talking about why bitcoin is a bubble and no one knows what price it will trade at in the future.
