Sen. Bernie Sanders is on a roll in the polls these days, and, if noted gold bug Peter Schiff has it right, that could add up to a very profitable November for those whose fortunes are tied to the shiny stuff.
‘If Sanders becomes president in 2020, the price of gold will be well above $2,000 on the day after election night.’
That’s Schiff, CEO of Euro Pacific Capital, sharing his prediction in a recent interview with Fox Business.
He added that gold, which just touched its highest level in years, could top $2,000 even before that, if Sanders emerges as the odds-on favorite.
At last check, gold was up slightly at $1,572, while the Dow Jones Industrial Average had gained triple digits to pace a broader market advance on Wednesday.
“What a Sanders win means is much bigger government deficits, and much more money printing by the Fed because there is no way to finance all of the spending that will happen with tax hikes on the rich,” Schiff explained. “We’ll get tax hikes on the rich, but they’re not going to provide the revenue to pay for the programs.”
He said the ballooning federal budget deficit, on track to cross $1 trillion this year, would only get bigger under Sanders.
“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,” he said. “The deficits could be three or four trillion dollars a year.”
And what does it all mean for the greenback?
“There’s no way the dollar’s reserve status will survive a Sanders presidency,” Schiff said. “America is going to be a much, much poorer nation. Our standard of living is going to implode, but the money printing is going to be crazy.”
This article was originally published on MarketWatch.
