Coronavirus hyperinflation risk looms, buy gold

NEWS SUMMARY: Precious metal prices rose on safe-haven buying after jobless claims spiked to a record high. U.S. stocks rose for a third day despite downbeat unemployment data on rising investor hopes.

SCHIFF/FOX BUSINESS-- "The extreme measures taken by the U.S. government and the Federal Reserve to combat the COVID-19 pandemic could push the U.S. into an episode of hyperinflation and boost gold, according to Peter Schiff. The White House and the Senate reached a $2 trillion deal early Wednesday on the third phase of a relief package that extends cash to the individuals, small businesses and corporations that were hit hardest by economic fallout from COVID-19. On top of that, the Fed said earlier this week it would buy unlimited amounts of assets to support market functions and the economy. The central bank has also cut rates to nearly zero to ease lending conditions....'What the Fed is doing is extremely bearish for the U.S. economy,' Schiff, CEO of Westport, Connecticut-based Euro Pacific Capital, told FOX Business. He added that hyperinflation, or extremely high and worsening inflation, is 'very much on the table,' and that a complete destruction of the U.S. currency would be accelerated if the world 'dumps the dollar as a reserve.' Schiff is not alone in suggesting that hyperinflation is a potential consequence of resorting to helicopter money. Deutsche Bank macro strategist Oliver Harvey says that while the policy response to COVID-19 is 'very similar' to the 2008 financial crisis, today's calamity is 'very different.'....For Schiff, the winner is clear: gold. The precious metal's price, he says, should be up 'a lot more' than just the 9.5 percent it has gained since the Fed launched its massive asset purchase program on Monday."