So, could we be on the verge of a gold breakout as stocks break down?
In his latest podcast, Peter Schiff said he believes we are already in a bear market. Technically, analysts don't start talking bears until the stock market declines 20%. But as Peter pointed out, you have to drop 10% before you get to 20.
"So, if this is a bear market, if we ultimately go down by more than 20%, then this is the bear market right now. It's only a correction if it doesn't turn into a bear market. But if it becomes a bear market, it's been a bear market the entire time, and I think we are in a bear market now."
The mainstream analysts continue to assure us that everything is fine. The fundamentals haven't changed. Peter said in a sense, they're right.
"The fundamentals haven't changed. They were lousy when the market was going up, and they're lousy now that the market is going down. In fact, if they've changed, the fundamentals have actually gotten worse. But the problem is these guys don't understand the fundamentals. They didn't realize that the only thing that was propping up the market was the fact that it was a bubble and what's changed is the bubble has been pricked."
Gold prices rallied after the Fed announced its rate hike. The price approached $1350 on Friday. The trade war talk spurred safe-haven buying, and we got the post-rate hike bounce we've seen in the past as investors sell the rumor, buy the fact of rate hikes.
Before the FOMC meeting, Peter said if the Fed didn't raise rates, gold could go ballistic.
"But they did raise rates, so it just went up a little bit. We're at resistance of $1350. But we could explode at any minute."
- Source, Seeking Alpha
