Gerald Celeste agrees with Peter Schiff. The United States economy is in terrible shape, and the official jobs numbers are not representative of the true health of the domestic labor market. Celente believes that gold will reach $2,000 or higher when investors realize that the equity markets are vastly overvalued.
Video Length: 00:05:36
Highlights from the interview:
“Job numbers will move the market one way or another. But let’s not forget. When lousy job numbers came out the last time [on a Good Friday]… The markets were closed, so you didn’t see much of a hit to the equity markets when they finally opened up. The same thing could happen now in the sense that the market numbers are only going to be a temporary move. Here’s the real fact: you still have a labor force participation rate that’s at 36-year lows. The jobs that are being created stink. We see the numbers, and we see where they come from. Now we have the people that they no longer count as bringing it also to a record high. So any kind of jobs that they’re going to create aren’t going to really create the economy that we need to have for growth…
“It’s only the low interest rates that are keeping the equity markets alive worldwide. You saw China lower its reserve rates. You see it everywhere with the negative interest rates, negative bond yields. It’s the only thing propelling the markets…
“Of course I am [bearish on US equities]… Every time they hint that rates are going to go up, the equity markets go into cardiac arrest. Everyone knows the deal. It is no secret. Even Bill Gates is waking up to it. It’s the people buying back their stocks. These huge companies borrowing money for nothing, and then buying back their stocks and driving the price up. The other one is merger and acquisition activity. Again, borrowing money for virtually nothing and gambling with it. So of course I’m negative in the equity markets…
“I’m a long-term investor. I’m not a grader in gold. It may not be this year, but again, what I’m saying is that when these equity markets tumble, there’s going to be a reality that sets back in. Gold is going to be seen again as that ultimate safe-haven. So if I were going to put a number on gold, I’d say well above $2,000. Because even when it hit its height back in 2011, it still didn’t adjust for inflation considering what the height was back in the 1980s. So I see gold as really the only way to gold…
“The Middle East is on the cusp of another major explosion. Look what’s going on. Every day you pick up the paper. Now you’re looking at a new one with Yemen. This is a big one that’s under the radar. There is a possibility of an event happening in Saudi Arabia that could attack the monarchy and the oil fields, that could further destabilize this already terribly destabilized region, and cause the kind of financial panic that could really undermine the Ponzi scheme that they call the equity markets…”
