Gold Finishes Q2 at Highest Level in Over 8 Years

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by Peter Schiff, Schiff Gold:

Q2 was one heck of a quarter for US stock markets. But in his podcast, Peter Schiff called it a “phony rally.” The real bull run to watch is gold.

The Dow Jones just wrapped up its best quarter since 1987. The S&P 500, finished out its best three-month run since 1998 during the dot-com bubble. But as Peter pointed out, you have to put the big gains in perspective. Stocks were coming off an abysmal first quarter, and other than the NASDAQ, the major indexes remain negative on the year.

And this stock market bull run has little to no connection with economic realities. In fact, the Federal Reserve drove it all. The central bank has dropped trillions of dollars into the economy in what Peter has called a “monetary Hail Mary.” It’s monetizing all of the government debt. The central bank has even resorted to purchasing corporate bonds and lending money directly to companies.

That’s why their share prices are going up because the Federal Reserve is buying all their bonds, almost like its forgiving their debt. So, it’s backstopping all these corporations. That is the only reason that we’ve had this rally.

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