- Goldman Sachs: Dump Dollars and Buy Silver
Sell dollars and buy silver. That’s Goldman Sachs’ recommendation.
Peter Schiff has been warning about a dollar collapse and now the mainstream is even getting bearish on the dollar. In response to the economic shutdowns imposed by governments to deal with the coronavirus pandemic, the Federal Reserve is printing money to infinity and beyond. On top of that, it has shifted its inflation targeting to allow inflation to run hot meaning there is no end in sight to the currency debasement. This is bearish for the dollar and an article published by Reuters last month quoted a number of mainstream analysts talking about “dollar woes.”
Goldman Sachs has jumped on that bandwagon, saying in a recent report that “the risks are skewed toward dollar weakness.” Analysts see an increasing likelihood of a Biden victory in the upcoming election.
A ‘blue wave’ US election and favorable news on the vaccine timeline could return the trade-weighted dollar and DXY index to their 2018 lows.”
Goldman sees broad-based dollar weakness and recommended shorting the greenback against the Mexican peso, South African rand and Indian rupee. It is also advised buying the euro, along with both Canadian and Australian dollars against the US dollar.
During his speech at the Money Show in August, Peter Schiff said the government is trying to replace the economy with a money printing press and he warned that a dollar crisis is looming.