2017 Gold Price – Peter Schiff
2017 Gold Price
The positive view for the spot gold price in 2017.
Did I mention this guy should be running American economics. Why won’t fed raise rates let’s see because our government can’t exist at its current size without 0% rates it’s way to big and we have minimal growth.
During the legendary gold run-up of the 2000s, gold surged from a low of $250 to $1,000 by 2008. A gain of 300%.
You may not realize this, but most gold investments are backed by nothing. The ETFs and futures, which are traded on the London and Comex exchanges, are paper contracts. And there’s more than 252 claims on gold for every ounce of gold available.
In other words, if everybody decided to call in the gold on their futures contracts, only 1 in 252 trades could be covered.
Some say it’s because the banks want to suppress the price of gold. And while I don’t think it’s a conspiracy, I do think it’s kept gold much lower than its real value.
Simply because the flood of paper contracts doesn’t represent the scarcity of physical bullion.
In 2016, and without much fanfare, China opened the Shanghai Gold Exchange.
A historic move that could push the Chinese to dominate the global gold market.
Few understand the dramatic ramifications of this development. But I do.
You see, the Chinese have been quietly buying gold at a frenetic pace. Some estimate up to 20 tons per month.
One report shows that China may even hold up to a whopping 30,000 tons of gold.
If these estimates are even close to the mark, China’s gold reserves are nearly DOUBLE that of every other major country combined!
Well, with all that said you might think that I’m very bullish on gold for this year. But, what I’m trying to do here is give both sides of the argumen.
For the other side of the Outlook for the gold price in 2017, read my December post on my opinion for spot gold 2017.
2017 Gold Price