The Fundamental Case For Owning Gold Today
Jesse Felder | Aug 23, 2018 12:24AM ET
Recently my friend trillion dollars and the gold price soared.
Whether gold soared at that time due to the central bank mistake or to the fiscal authorities response is certainly debatable. That gold initially declined into the crisis and then soared alongside the federal deficit until well after the crisis had been apparently averted, though, is a fact.
Since then the budget deficit has narrowed and gold prices have fallen. However, the CBO estimates that, as a result of the recent tax cuts, the deficit will again surpass a trillion dollars by 2020. In this case, we have the fiscal authorities getting aggressive outside of recession or a central bank mistake. In my view, this provides a positive backdrop for gold prices all by itself.
Furthermore, if we get a recession over the next few years, (perhaps precipitated by a central bank mistake?) we could actually see a so keen to condemn currently.
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