Summary: Is the gold rally over? It’s a question we’ve been hearing for months. Last week’s massive sell-offs would seem to indicate that the answer is yes.
This debate between Peter Schiff, CEO of Euro-Pacific Capital, and David Goldman, President of Macro Strategy, is a fascinating discussion and debate on where gold is now and where it’s going. Goldman and CNBC-host Larry Kudlow claim that rising energy production in the U.S. will translate into a trade-surplus, which will be good for the dollar and stock market. Schiff counters that energy production not enough to close $500 billion trade deficit and that the Fed is “…spiking the punch bowl with monetary alcohol.” He says this will eventually wear off and that foreign creditors will demand higher interest rates to loan the U.S. money.