Peter Schiff, chief executive officer and president of Euro Pacific Capital, believes that the price of gold will skyrocket if Sen. Bernie Sanders, the Independent from Vermont, becomes the next president of the United States.
Sanders is trailing Vice President Joe Biden in the delegate race but shows no signs he will step aside. Sanders has 706 delegates at last count to Biden’s 860.
It takes 1,991 to secure the Democratic nomination outright.
“If Sanders becomes president in 2020, the price of gold will be well above $2,000 on the day after election night,” said Peter Schiff.
“What a Sanders win means is much bigger government deficits, and much more money printing by the Fed because there is no way to finance all of the spending that will happen with tax hikes on the rich.”
“We’ll get tax hikes on the rich, but they’re not going to provide the revenue to pay for the programs.”
Gold hit $1,674.50 in early March before falling off due to pressure from the coronavirus.
What is surprising about this recent gold surge is the timing.
Gold’s latest rise is perplexing because the US dollar is currently performing very well against other major currencies, and equities themselves are pushing their all-time highs.
When the US dollar and equities are doing well, gold generally doesn’t perform as strong.
The two main factors behind gold’s upward swing are chart based momentum and fears over the coronavirus.
“It seems like it [the virus] is getting worse,” said Charles Nedoss, a senior market strategist with LaSalle Futures Group.
“It showed up in Korea and Japan. You’re hearing more talk of it hitting the economy — obviously travel and tourism.”
Apple also recently warned that they are unlikely to hit sales goals for the current quarter, due to a lack of production and demand within China.