"What is going on with gold?”

This is the #1 question I’m being asked by clients. The answer is actually quite simple: gold recognizes that there is no situation in which the Fed doesn’t end up printing money in the next six months.

The economy is rolling over. Consumer spending accounts for 70%-75% of U.S. GDP. And consumers are panicking due to the trade war with some readings coming in at levels not seen since the Great Financial Crisis.

I’m not exaggerating here.

The Survey of Consumers from the University of Michigan showed that consumer confidence has declined four months in a row. That same survey showed that the share of consumers expecting unemployment to rise this year had risen five months straight and was at its highest level since 2009 (after the Great Financial Crisis).

At the same time as consumers are panicking, the stock market has staged one of its most aggressive collapses in history, with stocks declining over 20% peak to trough in just six weeks. Over $11 TRILLION in wealth has been erased.

The Fed claims they will NOT act to support the markets, but who are we kidding?  Do you really think the Fed would stomach a deflationary collapse that triggers systemic risk?

In simple terms, it’s only a matter of time before the Fed turns on the printing presses again.

Small wonder then that gold has been on a tear. Gold has figured out that there is NO WAY out of the current financial mess that doesn’t involve money printing. Indeed, if the policymakers’ actions during the pandemic taught us anything, it’s that the only thing they DO know how to do when stuff hits the fan is print money.

The precious metal is currently correcting, but don’t be fooled, this bull market in gold is NOWHERE near over.

And all of this is happening at a time when the $USD is on beginning to collapse.

This is an extremely dangerous situation. Money printing by the Fed will only accelerate the $USD collapse… which will ignite another round of inflation. If you’re not preparing for this, the time to act is NOW before it happens.

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