Investment strategist Michael Lee, the founder of Michael Lee Strategy, was recently interviewed by Michelle Makori, the editor-in-chief and lead anchor at Kitco News. During this interview, Michael Lee let the cat out of the bag and stated that he believed the price of gold would reach $5000 an ounce in roughly 3 years. He claims that the time is right for the price of gold to skyrocket because the faults are bound to happen soon and even though it isn’t being talked about, the US economy is in a recession.
One reliable indicator of a recession is the yield curve being inverted. Michael says that this has already happened, which will likely lead to a wave of defaults because consumers and many businesses are seriously overleveraged. He believes that the current recession will be similar to the recession that happened in 2001, which led to a two-year economic downturn that was directly responsible for a rise in the price of gold.
Lee tells us that the price of gold is sitting below a key psychological level, which is $2000 an ounce. According to Lee, the market is being manipulated by financial institutions and the banking industry on the whole.
Lee has often wondered why the price of gold hasn’t risen above $2000 an ounce, even with the BRICS nations buying it up in droves. He reminds us that J.P. Morgan traders manipulated the price of silver 15 years ago, and they are finally going to jail for containing the price. He wonders if this is happening with gold markets. Are they artificially deflating the price of gold? When all is said and done, Lee truly believes that the price of gold should be much higher.
He feels that a conspiracy is potentially underway. Why? So many other conspiracies have come true within the last few years, so why not believe one about the price of gold being artificially deflated?
Lee also speculated that the Europeans and China would wind up driving up the price of gold as they looked to experience a flight to safety. He ruminated that gold makes an excellent long-term investment because it’s an incredible hedge against economic turmoil and inflation.
Michael Lee has taken the time to question the labor market data. He feels this data might be suspect and wonders if it’s actually being reported with complete accuracy. He mentions that whenever a port from the labor market came out during the year, it would then be revised lower after the fact. He calls this a 12 Sigma deviation event. What does that mean? It means that Michael Lee has wondered if these later revisions are happening because the model is flawed, or government bureaucracy, or the books are being cooked in favor of the Biden administration by the Bureau of Labor Statistics.
Lee makes it very clear that whenever a port came out during the year, it was revised lower at a later date. Even worse, it has happened every single month throughout 2023. He calls this a 12 Sigma deviation event. This means that you have a better chance of being struck by lightning five times on your way to work before this would or could ever actually happen. Yet it happens every month.
Also Read: Is a Gold IRA a Good Move for Seniors?
He reminds us that it could be a flawed model, government bureaucracy, or the Bureau of Labor Statistics trying to help the Biden administration by making the labor market data look better in their favor.
In the interview, Lee also stated that he believes the Fed is making a blunder by continuously raising interest rates. He says that this is going to slow the economy down even further and make the recession worse than it should be. He believes that the Fed should be focusing on controlling inflation, but they should consider utilizing quantitative easing as opposed to raising interest rates.