Most economists and investors have been closely watching the Fed this week. Experts say that next month, officials are expected to announce that they’re pulling back financial support created during the pandemic.
While some say that could begin in October, no official word has been given yet.
However, analyst Peter Andersen doesn’t believe the Fed will taper bond purchases this year. In fact, while on Fox’s “Mornings with Maria,” he said making a move now – while the pandemic and conflict in Afghanistan is still ongoing – would be a “very serious mistake.”
He said, “There’s so much COVID confusion and with the different variants and the masking confusion, all of the situation, how could the Fed actually make any logic out of this? I mean, the Fed is no brighter, pardon me, than most analysts and the rest of us out here. So they don’t have any additional information and they’re struggling with the same things that we are as investors. So for them to strongly hint that they will make any action at this point, I do think is very, very premature. I mean, I would love to say that it is time to do this, but given our current situation, I just think it would be a very, very serious mistake to do that.”
Recent events, like helicopters evacuating Americans in Kabul as the Taliban invaded, maybe giving you a sense of déjà vu. It may look awfully like choppers lifting off the roof of the U.S. embassy in Saigon in 1975.
But that’s not the only thing that’s similar. The financial chaos then is also like what we’re seeing now.
Over the last few decades, U.S. debt has risen by an astonishing $5 trillion. That’s because the Fed is funding most new debt with money printing. So, it’s no surprise that the money supply has jumped sharply and will no doubt pull gold along with it.
In fact, chart trader Patrick Karim says gold and silver could soon reach their all-time highs.
He told Kitco News that gold could be headed for $2,300 an ounce, and silver could reach $50 an ounce. However, he said both metals would need to hit certain price levels first before another bull rally is confirmed.
Want to be invested in those metals when they hit their highs? We can help with that! Give us a call at (855) 905-5317 for your free one-on-one consultation.