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Should You Invest in Gold?
It hasn’t moved for ages. Is it going to?
According to Peter Schiff’s site, Central Banks have added gold to their stash for the fifth straight month.
Turkey was the largest purchaser in August, increasing its reserves by 84 tons YTD (year-to-date). Qatar was the biggest buyer of gold in July, adding almost 15 tons to its reserves.
India did not buy gold in August, but the country is the ninth largest holder of gold in the world.
In 2021, central banks added 82% more gold to their reserves than they did in 2020.
In an interview with Charles Payne, Schiff made the prediction that inflation is about to run out of control. He thinks the central banks won’t be able to control it and that they and people will be turning to gold.
He points out that the Bank of England said they were committed to fighting inflation but once a financial crisis hit, they went right back to QE (quantitative easing). He thinks the Federal Reserve will do the same thing.
If he is correct, there will be no Paul Volker style strategy to combat inflation. Schiff thinks that instead of dropping to 2%, inflation is more likely to head upwards.
For the most part, Payne seemed to agree with Schiff.
