Gold Sends Economy Towards Recession, Trillions Erased | Peter Boockvar

Boockvar warns of recession risks, citing unstable economic "legs" and tariff impacts. Gold's rise reflects central banks' dollar diversification. Spending cuts bring short-term pain.

 Gold Sends Economy Towards Recession, Trillions Erased | Peter Boockvar (photo credit: PR)
Gold Sends Economy Towards Recession, Trillions Erased | Peter Boockvar
(photo credit: PR)

Peter Boockvar, CIO of Bleakley Financial Group, warned of rising recession risks in a recent interview. He dissected the complex economic landscape, focusing on gold's role, escalating tariffs, and government spending cuts.

Boockvar clarified the Atlanta Fed's GDPNow projection, which initially showed a significant contraction due to gold imports. "When the government calculates GDP they do not include the gold trade," he stated, explaining the discrepancy. While official GDP figures won't reflect this, he acknowledged the economy's fragility, relying on "three legs": upper-income spending, AI investment, and government expenditure.

Tariffs were a major concern. "The markets have voted they don't like tariffs and every time we get an escalation the market sells off," Boockvar said. He criticized the notion that trade deficits are inherently bad, noting they often bring capital surpluses. "One of the problems here is Trump is working off a false premise that deficits are bad," he commented.

Gold, he clarified, is a symptom, not a cause. "There's a definite correlation between the reduction in foreign buying of US treasuries and the rise in Gold," he explained, pointing to central banks diversifying away from the dollar. He also noted the "Magnificent Seven" tech stock sell-off, erasing trillions.

Government spending cuts, while necessary, will bring short-term pain. "For every dollar that the government spends it ends up in some private sector hands," Boockvar stated, predicting potential job losses. "It's good in the short term to cut a lot of the waste… but there's short-term consequences growth-wise."

For investors, he recommended diversification: value stocks, international exposure, precious metals, and short-term treasuries. "I think it's really trying to focus on the things that have not worked for years because those things are beginning to work," he advised. Boockvar's analysis paints a picture of an economy facing significant challenges, with tariffs, spending cuts, and gold's role as key factors.

Watch the full interview:

>

Don't miss out on the opportunity to invest in Gold & Silver. Check out our featured companies today: (Ad)

Augusta Precious Metals(Full Review)

Fees:

$0 (10 Years)

Minimum:

$50,000

"Best Overall" by Money Magazine, Award-Winning for 6 Years, Thousands of 5-Star Rankings

Expand DetailsRenowned for its exceptional customer service and commitment to transparency, Augusta Precious Metals has garnered numerous accolades, including "Best Overall" from Money magazine and "Most Transparent" from Investopedia. The company's dedication to educating and supporting its clients has earned it top ratings from organizations such as A+ from BBB and AAA from BCA.
Fees:

Vary

Minimum:

$25,000

Industry leader with over $2 Billion in gold and silver. Top rated precious metals company with buy back guarantee

Expand DetailsFrom precious metals iras to direct purchases of gold and silver, goldco have helped thousands of americans place over $2 billion in gold and silver. Top-rated precious metals company rated A+ by the better business bureau rated triple a by business consumer alliance earned over 6,000+ 5-star customer ratings Money.Com 2024 best customer service 2024 inc. 5000 regionals: pacific ranked #17 2024 gold stevie award, fastest growing company inc. 5000 award recipient, 8+ years

American Hartford Gold (Full Review)

Fees:

Vary

Minimum:

$10,000

American Hartford Gold, ranked #1 Gold Company on Inc. 5000, boasts thousands of A+ BBB ratings and 5-star reviews, endorsed by Bill O'Reilly and Rick Harrison..

Expand DetailsWith over $2 billion in precious metals sold, American Hartford Gold helps individuals and families diversify and protect their wealth. Their expert team provides investors with the latest market insights and a historical perspective, ensuring informed decisions. Trusted by public figures and praised for exceptional customer service, the company offers competitive pricing on top-tier gold and silver coins, backed by a 100% customer satisfaction guarantee

This article is for informational purposes only. The opinions and analysis herein are those of the author and are not financial advice. The Jerusalem Post (jpost.1eye.us) does not endorse or recommend any investments based on this information. Investors should consider their financial situation, investment goals, and risk tolerance before making any decisions. Consulting a qualified financial advisor is recommended. jpost.1eye.us is not liable for any investment losses from using this information. The information provided is for educational purposes only and should not be considered as trading or investment advice.