3 Reasons Why Soaring Gold Prices Could Crash in 2020 - According to Crypto Coin News

Crypto Coin News has given its opinion why gold investors are about to get slaughtered - so everybody ought to pile into Crypto Currencies.

Reason 1

1. A Coronavirus Vaccine

According to CCN this could happen faster than anyone thinks, even by mid 2021 so all that "economic turmoil" should clear right up making gold crash.

Comment: It is hard to imagine anyone could suggest that a year of deep deflationary depression will clear right up.  But it it's good to be optimistic.

Reason 2

2. An Economic Recovery

That reason 2 is the same as reason 1 doesn't seem to occur to the folks at CCN.

Reason 3

Deflation And A Soaring Dollar

That reason 3 annihilates reason 1 and 2 is clear.  But let's consider reason 3,  Yes, the deflationary force of mass unemployment is crushing.  But historically gold does very well during periods of deflation because deflation is massively destabilizing for an economy - especially an economy drowning in debt.  It crushes interest rates, animal spirits and GDP - making all sorts of financial gambles (investments) extraordinarily risky; debt becomes crushing - which each passing day the debt becomes larger and larger.  Meanwhile the dollar doesn't soar but it does rise commensurately with the debt because the debt must be paid in dollars. 

And just as it has for the last year gold will continue  rise with the dollar for the same reason: people are seeking safety. 

Unless there are massive defaults which have to be bailed out and that's when you get massive printing and hyperinflation.  In which case gold becomes the only viable currency.

So listen to the insanely poor reasoning of the Crypto shills and buy gold.