Connect with us

Hi, what are you looking for?

Investing

Mark Skousen: This is the Only Way Gold Breaks US$2,000 and Stays There

Mark Skousen of Forecasts & Strategies recommends investors diversify their portfolios, including gold and silver in the mix. However, he said the yellow metal needs a weak US dollar to break US$2,000 per ounce and stay there.

‘The only way I think gold will break through and stay above US$2,000 is if the dollar becomes weak,’ he said. ‘And the dollar’s not going to become weak until interest rates start coming back down — that will cause the dollar to drop.’

When asked what could prompt the US Federal Reserve to reverse course and take interest rates back down to lower levels, Skousen pointed to the potential for a debt crisis in emerging markets.

‘The dollar is so strong, and most of this emerging market debt for example is all in US dollars, and they’re paying these very high interest rates. They’re not going to be able to pay that off. So I think there’s going to be an emerging market debt crisis. When that happens, the Fed is going to cut interest rates, probably pretty sharply, because of the fear of contagion,’ he said.

‘The US is in no position to have a major recession, because if we do that means the deficit is going to balloon even more — the national debt’s going to get out of hand. So the Fed doesn’t want that, but they may get it nevertheless.’

Looking beyond the US, Skousen mentioned global instability as a major concern. ‘We now have two major wars going on. We could have a third with China and Taiwan. The spreading of world war could be a serious destabilizing factor in the economy. Again very positive for gold and defense stocks and things like that … but we need to be alert to that.’

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.






    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    LIVE OAK, Fla. — President Biden traveled to Florida on Saturday to survey the damage caused by Hurricane Idalia, part of a storm response...

    Stock

    President Biden is asking his Cabinet to ‘aggressively execute’ plans for federal employees to return to their offices for work this fall after years...

    Stock

    A group of House Democrats penned a letter Thursday to several top Biden administration and White House officials, demanding the immediate continuance of uninterrupted...

    Stock

    Special Counsel Jack Smith proposed to begin former President Donald Trump’s trial in January 2024 for the charges he’s facing in relation to the...

    Disclaimer: beneficialinvestmentnow.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2023 beneficialinvestmentnow.com