The precious metals expert, Peter Grosskopf is yet another voice calling for gold to hit its all-time high. The Sprott CEO says that the Federal Reserve has lost control of inflation and given gold a clear path back to £1,578 ($2,075).
He explained, “The most recent federal government budget depends on enjoying record low interest rates while robust inflation spurs growth and helps to boost receipts, all for an extended period of time. This is effectively a policy of financial repression. Governments have put their fingers in so many different markets in so many different ways,” he said. “This has interfered with the pricing of capital markets and risk, and we are now seeing this on Main Street as well.
“The market is losing faith in the Fed ‘s ability to control inflation at their desired level. Not only are your budgets much more out of whack but even more importantly, now the economy is linked to the market. If the Federal Reserve tightens too much and the market bubble pops, that will directly impact the economy. The Fed has no good options.”
With this backdrop, the allure of gold shines even brighter for investors with Grosskopf pointing out that its appeal as a portfolio hedge right now is unrivalled. He said, “People are once again realizing that the long-term track record of gold as a wealth protector is uncontested.”
Don’t wait. Buy now.