Coast to Coast AM interviewed Peter Schiff this week. They talked about the real story of the Obama recovery, central bank manipulation of the money supply, and why silver is just important for your portfolio as gold. It’s a long interview that you can find in full here. Highlights of Peter’s responses are transcribed below.
This post was submitted by Erik Oswald, SchiffGold Precious Metals Specialist.
While financial commentators continue to bash gold as an asset that produces nothing and should be left to the pages of history, the real story of the gold market is found at the macro economic and fundamental level. Central banks the world over have been net buyers of physical gold since 2011. On top of this, many sovereign nations have been requesting and taking delivery of their gold holdings from the New York Federal Reserve and London, where a majority of central banks’ gold holdings are stored.
Major news hit today on this front. The Netherlands has become the most recent Western European nation to take delivery of their physical holdings from the NY Fed. The Dutch central bank located in Amsterdam has increased its domestic holdings of physical bullion from 11% of total gold reserves to 31%. The official domestic Dutch gold horde has increased from about 67 tons to nearly 190. While this number is small in comparison to the reserves held by countries like China, Russia, and (allegedly) the US, the act of removing physical bullion from an international depository and returning it to the country of origin represents yet another vote of no confidence in the US financial system.
While interviewing William Rhind of World Gold Trust Services, CNBC asked him why central banks around the world are buying so much gold. Speaking about Russia’s massive purchases this year, one host asked, “How long can you use gold to prop up your currency, ultimately?” Rhind politely set her straight that gold is not an asset used to simply “prop up” currencies. If he’d had more time, he might have pointed out how much value the US dollar has lost since it has been off the gold standard.
Due in part to central bank buying, Rhind believes that the global gold supply is returning to deficit. He predicts that 2014 might turn out to be the second highest year of gold demand on record.
Greg Hunter of USAWatchdog interviewed Peter Schiff last week about the new highs in the stock market and what the positive financial news really portends for the United States economy. Peter also shares his thoughts about a bottom in the gold price.
Kitco News spoke with Peter Schiff at the Grand Cayman Liberty Forum about the gold market. They covered the gamut, from the economic fundamentals for gold’s next price rise to the Swiss gold referendum at the end of the month.
The price of gold in US dollars was up 1.5% this morning, boosting it to a 2-1/2 week high. Although the financial media continues to be bearish on precious metals, central banks around the world are starting to look more closely at the yellow metal as an important asset. Their reasons for buying or considering to buy gold vary widely from one bank to the next, but analysts are starting to expect a boost to the gold price in December thanks to central banks.
The 3rd quarter of 2014 marked the 15th consecutive quarter that central banks were net purchasers of gold, according to the World Gold Council. Here’s a brief rundown of some of the notable international gold news this week:
This post was submitted by Erik Oswald, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
In this article from Smaulgld, Louis Cammarosano examines the fundamental supply and demand figures for the gold market. Demand for physical gold has been increasing year over year since 2008, despite rising prices up until 2012. Following the correction from $1900 per ounce, market demand for physical bullion really took off. While many in the West do not appreciate the monetary significance of precious metals, the East has been consuming physical gold and silver at an unprecedented rate. This is evident in the official reserves reported by central banks. On the whole, Western central banks have been decreasing their holdings of physical bullion while Eastern central banks have been all too eager to purchase the surplus.
Countries like China are all too familiar with the dangers of paper monetary systems and have a much longer view of history than most Western central banks. The United States has never experienced a hyper inflationary environment in which the dollar has dropped to its intrinsic value of zero. Because we have exported inflation to our trading partners since World War II, we have been able to stave off the destructive effects of circulating irredeemable paper notes as real money in ever increasing quantities. Meanwhile, the developing BRICS countries have been cementing various trade and financial agreements with one another over the last several years. Their appetite for physical gold and silver is but one of many steps being taken to prepare for a world without the US dollar as a reserve currency.
Although we’re based out of the United States, SchiffGold and its Chairman Peter Schiff are passionate supporters of the Swiss Gold Initiative. Our hope is that Switzerland sends a message to the world’s central bankers that people are sick and tired of having their money manipulated. We’ve been doing our best to promote the issue, and Peter has even recorded a popular video appealing to Swiss voters that you can watch here.
However – and we hate to suggest this – what happens if Switzerland does not re-embrace gold and a sound currency on November 30th? The truth is that you do not need to rely on your government and central bank to maintain a gold standard. You can start your own personal gold standard at any time by owning precious metals as part of your own savings – your personal “reserves,” as it were. Jim Rickards explains the concept very well in a recent article:
In an interview with HedgeyeTV, David Stockman explains why he believes we’re on the verge of popping another major financial bubble for the third time in this century. He and Keith McCullough also discuss the potential political fallout from this bubble – who will be the politician to fire Janet Yellen and refute Keynesian policies? They wrap up by talking about Stockman’s recent book The Great Deformation and how the financial media is caught up in a “recency bias” that allows them to ignore the monetary fraud being perpetrated by the Federal Reserve and the government.
While parts of this conversation are a bit technical, Stockman does a great job explaining the fundamental economic and political realities of the United States.
In this SchiffGold exclusive video, Peter Schiff sits with Axel Merk at the recent New Orleans Investment Conference to discuss gold investing in the midst of the currency wars. Like Peter, Axel was one of the few analysts to warn of the 2008 financial crisis and he remains one of the few analysts independent from the mainstream “recovery” consensus. Their conversation covers the history of gold’s price performance, the upcoming Swiss Gold referendum, the role of physical bullion in a portfolio, and much more.