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Original Analysis

What NYC Taxicabs Can Tell Us About the Future of the Gold and Silver Markets

POSTED ON November 20, 2015  - POSTED IN Original Analysis

company-addison-qualeThis article was submitted by Addison Quale, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.

A fascinating situation is unfolding in New York City, highlighting the clash between government-enforced monopolies and the free market. More importantly, it also foreshadows what will eventually happen to the gold and silver market as the US dollar and other currencies collapse.

As you may know, Uber has made tremendous inroads into the taxi market in NYC. With its greater convenience, low prices, and employee-friendly work conditions, its success threatens to drive the city-regulated yellow cabs out of business.

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The Fed Will Not Kill Gold

POSTED ON November 17, 2015  - POSTED IN Original Analysis

This article is written by Peter Schiff and published by CNBC.

The September jobs report, which was released in early October, was so universally dismal that it managed to convince the majority of investors the Federal Reserve would not raise interest rates in 2015.

Since it is widely believed that gold rallies when interest rates stay below the rate of inflation, it is not surprising that in the two weeks following the release of the report, gold rallied from a multi-year low of $1,113 on Sept. 30 to $1,184 on Oct. 14, a gain of 6.4 percent. But the sentiment didn’t last. A number of pro-rate hike statements from Fed officials, a supposedly hawkish statement from the Fed’s October meeting, and a better-than-expected October jobs report released in early November, convinced the vast majority of investors and economists that a December rate hike was firmly back in play. This sent gold right back down, hitting a multi-year low of $1,075, a decline of over 9 percent in just two weeks.

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The Shadow Rate Casts Gloom

POSTED ON November 16, 2015  - POSTED IN Original Analysis

This article is written by Peter Schiff and originally published by Euro Pacific Capital. Find it here.

Nearly 92% of economists surveyed this week by the Wall Street Journal expect that our eight-year experiment with unprecedented monetary easing from the Federal Reserve will come to an end at the next Federal Reserve meeting in December. Since we have had the monetary wind at our back for so many years, at least a few have begun to question our ability to make economic and financial gains against actual headwinds. But in reality, the tightening cycle that the forecasters are waiting for actually started last year. Sadly, the markets and the economy are already showing an inability to handle it.

While it’s true that we have yet to achieve “lift-off” from zero percent interest rates, rates have not been the only means by which the Fed has provided stimulus. We also have to account for the effects of quantitative easing (QE) and forward guidance of the Fed. Changes in those inputs over the past year have already created conditions of monetary tightening.

Rate Hike or No, Dec. Fed Meeting Will Be Bullish for Gold (Video)

POSTED ON November 12, 2015  - POSTED IN Key Gold Headlines, Original Analysis, Videos

After a year of anticipating a Federal Reserve interest rate hike, all eyes are on the Fed’s December meeting. There are two obvious outcomes: the Fed does raise interest rates or it does not. In his November Gold Videocast, Peter Schiff explains why both scenarios are bullish for gold. Peter points to the behavior of gold under both Alan Greenspan and Paul Volcker as proof that a rising interest rate environment isn’t automatically bearish for the yellow metal. On the other hand, if the Fed continues to delay raising interest rates, investors will begin to realize their expectations were ill-founded and reconsider their positions in gold and silver.

Either way, investors who have been waiting to buy should thank the Fed for extending the opportunity to buy gold for less than $1,100 an ounce.

Watch the Student Debt Time Bomb Tick

POSTED ON November 11, 2015  - POSTED IN Key Gold Headlines, Original Analysis

Peter Schiff has been saying that it’s only a matter of time before the student loan bubble pops.

Now you can watch the clock tick thanks to the new National Student Loan Debt Clock developed for MarketWatch by StartClass, an education data site.

According to MarketWatch calculations, student loan debt increases in America by an estimated $2,726.27 every single second:

Possible vs. Probable: Oct. Jobs Report & Rate Hike Fantasies (Video)

POSTED ON November 7, 2015  - POSTED IN Original Analysis, Videos

In his latest video blog post, Peter Schiff challenges the mainstream notion that the October jobs numbers released yesterday are good enough to justify the a Federal Reserve rate hike in December.

Just because a rate hike is a possibility doesn’t mean it’s going to happen. It’s been a possibility all year. People thought it was possible they were going to raise rates in March. They didn’t. They thought it was possible they’d do it in June, September. Some people thought they might have raise rates last month. That was possible, but it didn’t happen… Yellen didn’t say that if we get all the improvements we want, we’re going to raise rates. She said if we get all the improvements we want, we might raise rates. She didn’t even use the word probable… Probable would imply the possibility was greater than 50/50…”

ETFs No Substitute for Physical Gold in a Crisis

POSTED ON October 30, 2015  - POSTED IN Key Gold Headlines, Original Analysis

Gold-backed exchange-traded funds (ETFs) generally follow the price of gold. As a result, they have been underperforming relative to the general stock market this year.

For instance, SPDR Gold Trust (GLD) lost about 28.3% of its value in 2013, fell another 2.2% in 2014 and yet another 3.8% so far this year. It was recently trading at $109.72 per share.

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ETFs are backed by physical gold held by the issuer, and are traded on the market like stocks. They allow investors to play gold without having to buy full ounces of gold at spot price. Since their purchase is just a number in a computer, they can trade their investment into another stock or cash pretty much whenever they want, even multiple times in the same day. Many speculative investors appreciate this liquidity.

There are also gold mining ETFs that track the value of gold mining companies and also generally follow the price of gold. These are very popular with speculative commodity investors and some of the most popular hit record lows this past summer, like the Market Vectors Gold Miners ETF (GDX).

With gold ETF prices being so low, many of Peter Schiff’s clients have asked if they should be investing in these ETFs.

Irwin Schiff’s Legacy & How to Escape the Inflation Tax (Video)

POSTED ON October 29, 2015  - POSTED IN Interviews, Original Analysis, Videos

Ernie Hancock of Declare Your Independence interviewed Peter Schiff about the tragic death of his father, Irwin. They discussed Irwin Schiff’s legacy and his influence on Peter’s understanding of economics. Peter has chosen to promote his father’s principles by educating the public about how to avoid the US government’s most insidious tax – not the income tax, but the inflation tax that comes from the destruction of the dollar’s purchasing power. One of the best ways to protect your hard-earned savings? Buy physical gold and silver.

I’m trying to do the best that I can to help Americans protect themselves agains that tax. My father was trying to get people to not pay the income tax. Well, this inflation tax is going to be worse, because it’s going to hit your principal – not just what you earn, but everything you have. If you don’t want to lose what you have, you have to take action now…”

Going Up: The Fed’s Balance Sheet & Gold (Video)

POSTED ON October 28, 2015  - POSTED IN Interviews, Original Analysis, Videos

Peter Schiff began his latest interview with Greg Hunter of USAWatchdog by explaining the history of the United States government’s debt ceiling. Peter argued that the idea of a real debt ceiling is a fantasy, just like the Federal Reserve’s narrative of a broad economic recovery. Greg pointed out that some analysts are predicting a further plunge in the price of gold, but Peter defended the yellow metal by pointing to long-term historical trends.

There will be deflation in terms of gold. If you want to price things in gold, stock prices are coming way down in gold. Real estate prices are coming way down in gold. Consumer prices are coming way down in gold. Commodity prices are coming way down in gold. They’re not going to come way down in dollar bills, because the government can create as many of those as it wants…”

Death of a Patriot

POSTED ON October 19, 2015  - POSTED IN Original Analysis

Irwin Schiff passed away on Friday, chained to his hospital bed. In this tribute to his life, Peter Schiff shares his personal thoughts about his father, a true American hero.

My father, Irwin A. Schiff, was born Feb. 23rd 1928, the 8th child and only son of Jewish immigrants, who had crossed the Atlantic twenty years earlier in search of freedom. As a result of their hope and courage, my father was fortunate to have been born into the freest nation in the history of the world. But when he passed away on Oct. 16th, 2015 at the age of 87, a political prisoner of that same nation, legally blind and shackled to a hospital bed in a guarded room in intensive care, the free nation he was born into had itself died years earlier.

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