Gold Price Predicted to Reach $5,000 in Three Years
According to Michael Lee, the founder of Michael Lee Strategy, the gold price is expected to reach $5,000 per ounce within the next three years. Lee discussed his prediction in an interview with Michelle Makori, the Lead Anchor and Editor-in-Chief at Kitco News. He attributed this forecast to the current state of the U.S. economy, which he believes is already in recession, and anticipated wave of defaults that will follow. Lee pointed out that the inverted yield curve, a reliable indicator of recession, supports his claim. He compared this recession to the 2001 downturn, which caused a rise in the gold price. He also suggested that banks and financial institutions are manipulating the market to keep gold prices below the psychological level of $2,000 per ounce.
Flight to Safety and Gold as a Long-Term Investment
Lee speculated that China and Europe are likely to experience a flight to safety, leading to an increase in gold prices. He emphasized that gold is a good long-term investment as it acts as a hedge against inflation and economic turmoil. Additionally, Lee questioned the accuracy of labor market data, noting that reports have consistently been revised lower throughout the year. He raised concerns about the government bureaucracy, flawed models, or potential manipulation by the Bureau of Labor Statistics to favor the Biden administration. Lastly, Lee criticized the Federal Reserve’s decision to raise interest rates, suggesting that it will further slow down the economy and worsen the recession. He proposed alternative methods, such as quantitative easing, to control inflation.
Hot Take: Gold Price Predicted to Surge Amid Recession
Michael Lee, founder of Michael Lee Strategy, predicts that the gold price will skyrocket to $5,000 per ounce within three years due to the U.S. economy’s recession and an impending wave of defaults. He explained that the inverted yield curve, a reliable recession indicator, supports his argument. Lee also raised concerns about market manipulation, suggesting that banks and financial institutions are keeping gold prices below $2,000 per ounce. He speculated that a flight to safety in China and Europe would drive up gold prices. Additionally, Lee questioned the accuracy of labor market data, raising suspicions of manipulation by the Bureau of Labor Statistics. He criticized the Federal Reserve’s decision to raise interest rates, proposing alternative methods like quantitative easing to control inflation.
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