The Fed is trapped, gold will likely benefit

March 3, 2021 by No Comments

Crescat Capital/Kevin Smith and Tavi Costa/2-25-2021

“Global central bank money printing is one of the primary drivers of the gold price. Our current valuation target for gold based on the level of central bank assets and the inelastic supply of above-ground gold is $3,200/oz. Note, this is a rising target.”

USAGOLD note: In this update, which includes a number of useful charts, Crescat Capital’s Kevin Smith and Tavi Costa point out that the U.S. government issued $4.4 trillion of debt in 2020, and $2.4 billion (or 54%) was purchased by the Federal Reserve. They believe that $300 billion per month in quantitative easing will be needed to cover the upcoming tab as opposed to the current $120 billion per month.

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Original source: https://www.usagold.com/cpmforum/2021/03/the-fed-is-trapped-gold-will-likely-benefit/