Rate Hike or No, Dec. Fed Meeting Will Be Bullish for Gold – Peter Schiff’s Gold Videocast

• published: 12 Nov 2015
• views: 1477

At 7:30, Peter misspoke. He intended to say that gold could have a short-lived, “head fake” price dip if a December rate hike were announced. This would provide another buying opportunity. However, he ultimately believes gold will rally after the Fed’s meeting, no matter the announcement. Peter Schiff's Gold Videocast 11/12/2015 Sign up for my free newsletter: http://www.europac.net/subscribe_free... Peter Schiff’s Gold News: http://www.SchiffGold.com/news Buy my newest book at http://www.tinyurl.com/RealCrash Friend me on http://www.Facebook.com/PeterSchiff Follow me on http://www.Twitter.com/PeterSchiff 0:10 – The price of gold has declined almost $100 in the last month. This is an excellent opportunity to buy gold for those who were afraid of buying during the rally. 0:45 – Gold traders started selling when the Federal Reserve failed to remove the possibility of rate hikes in December, as well as the better-than-expected non-farm payroll report for October. 1:45 – There are two possibilities for gold traders to consider: the Fed either will or will not raise interest rates in December. Both options are bullish for gold. 2:30 – Most traders thinks higher interest rates will hurt the price of gold. 3:00 – The gold market has already discounted the gold price based upon expectations of a rate hike. 3:31 – If the Fed does raise rates a small amount in December, they will reassure the markets that ongoing rate hikes will be extremely slow and measured. 4:40 – Once the Fed begins to raise interest rates, the market will begin to anticipate the next easing cycle. 5:13 – This period of economic expansion and recovery will end sometime in 2016. 6:00 – The US dollar has already rallied for the same reason gold has declined: the anticipation of rising interest rates. 6:25 – When Alan Greenspan last raised interest rates at a “measured pace,” gold rallied the entire time, while the dollar sold off. It’s a myth that higher interest rates would automatically be bearish for gold. 7:00 – High real interest rates would be bearish for gold, like the economic environment under Paul Volcker. That is not going to happen. Even with a slight rate increase from the Fed, the real rate will still be negative. 8:03 – The other possibility is that the Fed doesn’t raise interest rates, proving the rumors of a rate hike were false. If that happens, gold sellers will reconsider their assumptions about Fed policy.