In an interview with King World News, the global economy is entering into a recession and the global economic collapse is imminent. (Source: The Panic That’s Happening Right Now Is Much Bigger Than Just The Gold Market, July 22, 2015.)
In June of 2013, when gold first broke below the $1,200 level, Celente repeatedly stated the downside risk was $100.00 to $150.00, and he consistently repeated that message.
Two years later, the yellow metal dropped 6.3% over 10 days of losses, and gold prices reached a five-year low of $1,080 an ounce on Monday, July 20th.
When Celente was asked how he knew about the drop in the gold prices, he responded, “Because the markets are rigged.”
“We already know that LIBOR and forex are both rigged and we also know there have been investigations about the rigging of the gold market,” Celente added.
Historically, gold has served as a safe haven for investors. It has also been used to hedge against inflation. The idea is that it doesn’t gain value, but it doesn’t lose it either. Meanwhile, gold would attract investors when the economies of the world were going to slow down.
According to Celente, Canada is in a recession, Australia is heading into recession, and Latin American currencies of commodity-producing nations are getting crushed. Under these circumstances, currencies of these regions have depreciated significantly against the U.S. dollar.
He continued, “So for me gold has always been a buy because of its protection against the devaluation of global currencies.”
“The only reason why the U.S. dollar is strong is because all the other currencies are beating them in the global currency race to the bottom,” he added further. “The dollar isn’t strong because of our great productive capacity and economic growth.”
The Federal Reserve has reportedly said that the interest rate is likely to increase this year. Rising interest rates could lead to increased demand for the U.S. dollar and put pressure on commodities such as gold and iron ore.
“The bottom line is that I believe that the gold market has now seen the worst.” Celente concluded, “Could it go just a bit lower? Yes, but compared to an upside potential of well over $2,000, the downside risk is low.”