The only thing bigger than the story IS Inflation itself in 2021
Patriot Gold Group forewarned clients about the excessive monetary policy enacted by The Fed in response to Covid shutdowns; resulting inflation is now reminiscent of the 1970s when double digit inflation wreaked havoc on America’s economy. Larry Summers sounded the alarm when he voiced, “I’m concerned that what is being done is substantially excessive,” with a “scale of fiscal and financial largesse previously solely seen in world wars.” Inflation has now entered its final and worst stage with prices of ordinary consumer goods and services compelled to be raised. Coca Cola, Procter & Gamble and Kimberly-Clark are forced to raise prices on toilet paper, diapers and everyday essentials. The Fed, insisting inflation is “transitory,” committed to keeping interest rates near 0% through 2022 until the end of 2023, “clearing the runway for a historic bull run in gold and silver.”
These concerns are magnified when considering multi-trillion dollar social safety net legislation and bills being proposed by this new administration! Biden has recently released, in addition to the $1.9T Covid Relief Bill, an additional $4 trillion dollar Infrastructure Bill and America Families Plan, both of which are simply an expansion of “American Social Safety Net.” As if this is not worrisome enough, Biden plans on repealing Trump’s historic tax reforms and paying for it all by raising capital gains taxes, corporate taxes and taxes on individuals and families earning over $400K/year. The National Association of Manufacturers said Biden’s corporate tax hike could cost 1 million American jobs and be the dagger in the recovery for Americans trying to pull ourselves out of this government-induced economic shutdown.
The federal government should be focusing on the real existential threat to the nation, runaway prices, not wasting resources on partisan political issues like treating unarmed trespassers as “insurrectionists.”
According to Jack Hanney, CEO of Patriot Gold Group, “Economists all agree the $300 supplemental weekly unemployment benefit while proposing the single biggest tax hikes in generations can only sideline or altogether halt recovery efforts.” Mr. Hanney continues, “Biden, along with Bernie Sanders, are using the Covid pandemic hysteria and plight of the American people to propel overly aggressive, expensive legislation, masking it as a ’recovery effort‘ but in reality causing more damage to our free-market Capitalist society that America and innovation was built and thrives on.”
Wells Fargo raised their 2021 price target to $2,200 an ounce and stated, “Gold’s Strongest Price Rally Is Coming” as “gold supplies have flipped from excessive to deficient.” Ex Managing Director of JP Morgan Jon Deane stated, “We are sitting on an economic cliff,” and “Gold will be well north of $2,000 an ounce this year.” Deane added, “We are already seeing inflation. If you look around the world, you see real estate prices, building supplies, and services skyrocket. What we created since the early 1990s is an entire financial infrastructure relying on debt and we have accelerated that dramatically in our response to managing the Covid-19 crisis.”
Deane forecasts silver to be between $35 – $40 an ounce and Bloomberg Intelligence and Saxo Bank raised their silver forecast to $50 an ounce in 2021 based on the excessive money printing and Biden’s commitment to renewable energy.