Gold: Hold It Or Fold It?

Summary: This commentary from famed-investor Peter Schiff discusses current sentiment in the gold market. He specifically cites Goldman Sachs’ October forecast that gold would be a “slam dunk sell” if the U.S. government raised the debt ceiling. However, once a deal was reached in the halls of Congress, gold did the opposite and rallied 3%. Schiff cites conventional belief that the U.S. economy is recovering as driving Goldman and other bearish forecasts for gold. However, a closer look at data shows the economy never really made it out of recession according to Schiff. He cites both the inflation and GDP numbers the government puts out as being misleading since they’re calculated differently than they were in the past. If we use the old methods as shown by ShadowStats.com, we see that GDP in the U.S. has been at -2% for the last 3 years, and that the contraction in 2008-09 was much worse at minus 4-5%. Once the real economic picture becomes more clear to more investors, we could see gold return to its previous highs and go higher. Read more…

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