Fox Business - Gold Will Explode if Bernie Sanders Wins in 2020: Peter Schiff
Article by Jonathan Garber in Fox Business Channel website
Is it time to invest in gold amid market uncertainty?
Gold hit its highest level in almost seven years, touching $1,594.70 an ounce Monday, and gold bugs may see further gains thanks to Sen. Bernie Sanders, I-Vt.
The chances of a Sanders presidency are on the rise, according to a Fox News poll released Sunday which showed 23 percent of Democratic primary voters prefer the Vermont Senator, up from 20 percent in December. The poll found that former Vice President Joe Biden remains the frontrunner for the Democratic nomination at 26 percent, but that was down from 30 percent last month. Sanders matches up favorably against President Trump, leading 48 percent to 42 percent in a head-to-head matchup.
“If Sanders becomes president in 2020, the price of gold will be well above $2,000 on the day after election night,” Peter Schiff, chief executive officer and president of the Westport, Conn.-based Euro Pacific Capital told FOX Business. He added that the precious metal could reach $2,000 before the election if the market thinks Sanders is going to win.
Schiff believes the U.S. budget deficit, which was up 11.8 percent through the first three months of this budget year to $356.6 billion and on track to top $1 trillion for the first time in eight years, would balloon even further under a Sanders presidency.
“There is gonna be no Republican opposition to the deficits that would finance the spending because after all, the Republicans didn’t object to record deficits under Trump when the economy was supposedly the greatest ever,” Schiff said. “The deficits could be three or four trillion dollars a year and the money printing will be off the charts.”
As for the coronavirus and any potential impact it might have on the price of the precious metal, Schiff says that gold was rallying before the outbreak and that it is “not why” the price is going up even though metals are considered a safe-haven amid uncertain times.
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