September 25, 2015 by Mike Finger 0 0
For months, Peter Schiff has argued that the Federal Reserve cannot and will not raise the interest rate.
Most recently, Peter told CNBC Asia the Fed is pulling a “long con” on the global markets when it comes to its monetary policy. The Fed wants people to believe that a rate hike is coming, but Peter argues that we will actually see a fourth round of quantitative easing.
Now we’re beginning to hear echoes of Peter’s position on interest rate hikes from other global analysts.
In a recent note to investors, UBS advised the time has come to “warm up” to gold, arguing that interest rates won’t rise to the level most have predicted.
UBS models suggest that US equilibrium real rates may settle lower versus previous cycles and versus current market expectations.”
Mineweb reported the news emphasizing interest rates will likely remain far lower than the mainstream pundits have anticipated.
UBS sets the scene of gold’s decline, noting ‘The prospect of Fed normalising policy has been the main driver for gold’s correction over the past few years.’ But UBS takes the position that the market has gone too far, punishing gold ahead of presumed (and now delayed) rate hikes. In this, UBS sees a new – and lower – world order of interest rates coming to bear less than might be expected, which could be seen as good for gold.Read More »