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Original Analysis

Fed’s Leaked Forecasts Reveal Rate Hike Is a Fantasy (Video)

POSTED ON July 27, 2015  - POSTED IN Original Analysis, Videos

On Friday, the Federal Reserve accidentally published the economic forecasts of its staffers, which normally remain private. The numbers reveal that the Fed is painting a much rosier picture of the United States economy than they publicly admit. Peter Schiff dug into these numbers during his podcast published on Saturday. Use the chart below to follow along with Peter’s analysis. Peter also discusses the gold market, which he believes is setting itself up for a massive short squeeze.

15 07 27 Fed staff forecasts

Currencies Depend on Faith, Gold Doesn’t

POSTED ON July 24, 2015  - POSTED IN Original Analysis

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

In his July 17th blog post, “Let’s Get Real About Gold”, author and Wall Street Journal columnist Jason Zweig likened investor interest in gold with the “Pet Rock” craze of the 1970s, when consumers became convinced that a rock in a box would provide continuous companionship, elevate their social standing, and give them something hip to talk about at parties. Zweig asserts that investor faith in gold, which he argues is just another inert mineral with good marketing, is similarly irrational, and has kept people from putting money in the much more lucrative stock market.

15 07 24 gold rock

First off, Zweig’s comparison of gold to equities as an investment vehicle sets up a false dichotomy. Gold is not an investment. It is, as Zweig indicates, nothing but a rock. But it is a rock that is extremely scarce, with highly desirable physical properties that have resulted in its being used as money for all of recorded human history. As a result, it should not be compared to stocks or real estate, but to other forms of money, such as any one of a number of fiat currencies now in circulation. Ironically, in a world awash in fiat currencies that are created at an ever increasing pace, and whose value is solely derived from faith in the issuing state, gold is the only form of money whose value does not require a leap of faith.

Happy 50th Birthday to “Junk Silver”

POSTED ON July 23, 2015  - POSTED IN Original Analysis

Under the original Coinage Act of 1792, drafted by Alexander Hamilton, the penalty for debasing a coin was death.

Under that law, President Lyndon B. Johnson was guilty of a capital offense.

Fifty years ago today, Johnson signed the Coinage Act of 1965, setting into motion five decades of currency debasement that continues today. Under the law, silver dimes and quarters would no longer contain silver. Instead, the Treasury would mint coins made of “composites, with faces of the same alloy used in our 5-cent piece that is bonded to a core of pure copper.”

junk-silver-pile

Today, we call pre-1965 dimes and quarters “junk silver,” but we really should be calling the modern coins junk, because that’s what they’re worth.

This Is Your Brain on Dollars

POSTED ON July 22, 2015  - POSTED IN Original Analysis

The following article was written by Keith Weiner of Monetary Metals and recommended by our Precious Metals Specialists. Any views expressed do not necessarily reflect the views of Peter Schiff or SchiffGold.

Lions, Tigers, and Gold Bears, Oh My!

We can’t count how many articles we saw today, bemoaning gold going down. The price action is bad for gold (whatever that means). China underreported their gold holdings. No, China doesn’t care about gold. No they want the price to go down so they can buy it cheap. No, they want to convince the IMF to include the yuan (which has capital controls, by the way) into the SDR basket. No, China really intends to revalue gold (whatever that means).

This is your brain on dollars. Any questions?

15 07 22 batman gold

Gold Doesn’t Need Blind Faith, but the Dollar Does (Video)

POSTED ON July 21, 2015  - POSTED IN Key Gold Headlines, Original Analysis, Videos

In his podcast released yesterday evening, Peter Schiff explains why the price of gold plunged on Sunday night. More importantly, he reminds investors why gold is not a faith-based asset, like fiat money. He also reviews China’s relationship to gold, and compares the current market to the last time a bear market in gold ended.

I am convinced, when his market turns, it’s going to be vicious. When the people who have been selling their gold try to buy it back, it isn’t going to be there. Because the people who have been buying into the selling… they’re not going to turn around and sell it. When the speculative sellers are gone, there are no sellers left… I think the market is going to go up even faster than it has come down…

How Socialism Destroyed Puerto Rico, and How Capitalism Can Save It

POSTED ON July 17, 2015  - POSTED IN Original Analysis

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

While Greece is now dominating the debt default stage, the real tragedy is playing out much closer to home, with the downward spiral of Puerto Rico. As in Greece, the Puerto Rican economy has been destroyed by its participation in an unrealistic monetary system that it does not control and the failure of domestic politicians to confront their own insolvency. But the damage done to the Puerto Rican economy by the United States has been far more debilitating than whatever damage the European Union has inflicted on Greece. In fact, the lessons we should be learning in Puerto Rico, most notably how socialistic labor and tax policies can devastate an economy, should serve as a wake up call to those advocating prescribing the same for the mainland.

15 07 17 puerto rico

The US has bombed the territory of Puerto Rico with five supposedly well-meaning, but economically devastating policies. It has:

1. Exempted the Island’s government debt from all U.S. taxes in the Jones-Shaforth Act.
2. Eliminated U.S. tax breaks for private sector investment with the expiration of section 936 of the U.S. Internal Revenue Code.
3. Required the nation to abide by a restrictive trade arrangement.
4. Made the Island subject to the U.S. minimum wage.
5. Enabled Puerto Rico to offer generous welfare benefits relative to income.

Demand for Physical Gold and Silver Spikes In the Midst of Economic Uncertainty

POSTED ON July 17, 2015  - POSTED IN Original Analysis

Demand for physical gold and silver has surged over the past two months, with mints around the world reporting robust sales in the midst of the Greek crisis and warning signs in other economies.

According to US Mint figures, the sale of 1-ounce American Gold Eagles more than quadrupled, jumping from just 13,500 coins sold in May to 62,500 in June. The pace has only accelerated in July, with the US Mint reporting 69,000 Gold Eagles sold to date. This is the highest level of sales all year.

Last week, US Sliver Eagles completely sold out.

15 07 02 gold coins

Markets Are Wrong Again: QE4 & Higher Gold on Horizon (Video)

POSTED ON July 16, 2015  - POSTED IN Interviews, Original Analysis, Videos

Peter Schiff got into a heated debate on CNBC this afternoon when he explained why he thinks now is a good time to buy gold. The floor traders couldn’t wrap their heads around Peter’s suggestion that the Federal Reserve might launch a new round of quantitative easing in the next year. Instead, they insisted that the futures market is accurately predicting a Fed Funds rate hike. Peter countered that the markets have been wrong before.

American Pension Systems Looking Increasingly Greek

POSTED ON July 16, 2015  - POSTED IN Key Gold Headlines, Original Analysis

Could America go the way of Greece?

Most people don’t seem to think so. In fact, proposing that US policy could lead to a Greek-like meltdown will still elicit incredulous eye-rolls in most circles. But some of the structural problems that led Greece down her road to ruin already exist in the United States, especially when we look at state pension systems.

15 07 16 public pensions

Greece has actually improved its pension system. It now ranks as the eighth worst in the world. That’s up from dead last. According to Eurostat, Greece spends 17.5% as a proportion of GDP on pensions, the most in the European Union.