Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Perception Is the New Truth: Physical vs. Paper Gold (Video)

  by    2   2

Bloomberg Business interviewed Peter Hambro, Chairman and Co-Founder of Petropavlovsk – one of the largest gold mining companies in Russia. Hambro presented physical gold to the Bloomberg anchors, who seemed genuinely dubious as to its value, insisting that gold is for “speculators.” Hambro clarified that “paper gold” is for speculators, and he believes the Comex futures market is going to come crashing down eventually – something we wrote about yesterday.

As an industry insider, Hambro shared invaluable insights into the physical gold market, especially when it comes to Asian demand:

In the Shanghai market, which is the only big physical market, recently introduced by the Chinese – year on year, they delivered 55 million ounces from August to August. That’s 65 billion dollars worth of physical gold. That is about half of the world’s mine supply.”

Hambro also shared Peter Schiff’s opinion that the Federal Reserve is not going to raise interest rates. Rather, all the Fed has to offer are economic bedtime stories to influence market perception. Click here to learn why you want to buy gold when perception becomes more important than reality.

Highlights from the interview:

“I believe it [gold] is [still the safe haven]… [This gold coin] 2000 years ago buys the same amount of bread today as it did when Jesus Christ was born. That is a real safe haven asset…

“This is real gold. The alternative is paper gold – other people’s promises. That is nobody’s promise. This is real. You can feel the weight of it. It’s lovely… The promises are the things that very. Are you sure it’s as good to have Comex futures as it is to have the real thing? In the Shanghai market, which is the only big physical market, recently introduced by the Chinese – year on year, they delivered 55 million ounces from August to August. That’s 65 billion dollars worth of physical gold. That is about half of the world’s mine supply. When you add to that the gold that’s being bought by the People’s Bank of China… Chinese demand… What the Chinese have done for their people by encouraging them to buy gold, then devaluing their currency, is fantastic…

“Gold is what I call wealth insurance. You have health insurance, fire insurance – this is wealth insurance…

“My baseline is that they [the Chinese] have been buying it, the Indian people have been buying it in enormous quantities. It’s virtually impossible to get physical gold in London to ship to those countries. We get permanent requests in Russia now – would we please sell our physical gold to India and China, because there isn’t enough physical…

“I really worry that paper market is something that could be stamped on, and people would say, ‘Sorry, we’re going to have a financial closeout.’ And it’s all over. If you want to be in the gold business, you ought to be in the physical business…

“Do you think the Fed will [raise interest rates]? I’m not convinced by this. If they do, the cost of funding the United States is going to go up. That’s going to increase the deficit at a time when China is selling Treasuries. This is not a good time to do it. The labor market in the US is not as buoyant as people think it is. I do not see this as something that is going to happen. I think they’ll talk about it, because I think there’s a real worry about financial instability. So threats of interest rate rises – perception is the new truth.”

Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

New Peter Schiff Interview: We’re Paying the Price for Deficits

Last week, Peter was interviewed on Speak Up with Anthony Scaramucci. In their conversation, they covered a wide range of important topics, including inflation, the fate of the dollar, and the trade-offs between gold and cryptocurrency. 

READ MORE →

Dollar Down 20% Since 2020, Biden Blames Greed

Assuming CPI measurements are not understatements, the dollar’s value has plummeted by a staggering one-fifth since 2020, yet, rather than acknowledging its role in fueling this economic turmoil, the Biden administration deflects, casting capitalism and corporate greed as the villains. The latest February CPI data show more signs of the upcoming inflation bloodbath.

READ MORE →

The Myth of Fed Neutrality

Powell follows the president's wishesThe Federal Reserve is often viewed as a neutral guardian of the economy, tasked with safeguarding employment and ensuring stable prices. However, the Fed is run by individuals who, like anyone else, are swayed by certain motivations. Do the people behind the Fed truly have the incentive to remain impartial? Our guest commentator demystifies the […]

READ MORE →

Peter Schiff: Gold is the Canary in the Economic Coal Mine

This weekend, Todd Sachs interviewed Peter on the state of the economy. They discuss the parallels between now and the 2007-2008 housing crisis, the role of economic sentiment in voters’ opinions, and why foreign central banks are losing faith in the dollar.

READ MORE →

Massive Deficit Spending Tows US Economy Forward

A truck titled "US gdp" tows along another car, the US economyRampant government spending continues to mask fundamental weaknesses in the US economy. Recently, national debt grew much faster than the economy for the third quarter in a row, just one of many warning signs concerning legendary investors. Our guest commentator explains just how much the government is spending to make the economy seem strong, even […]

READ MORE →

2 thoughts on “Perception Is the New Truth: Physical vs. Paper Gold (Video)

  1. Rupert Atkinson says:

    The gold market is not volatile – this guy shows it to be stable over 2000 years. It is the dollar that is volatile.

  2. Smart Money Honey says:

    Gold IS Real Money.
    It has kept it’s value for 1,000’s of years!

    PAPER Is A FALSE PROMISE. HOLD GOLD.
    “A bird in the hand is worth 2 in the Bush”
    (Paper is a promise that cannot be kept.)
    1) The paper money — in your pocket (or bank) is losing it’s buying power. It’s rolling down a hill & will sooner than later fall off a cliff.
    2) Paper Gold Vs. Holding Your Own Gold. — Paper Gold is buying gold from a seller who gives you a paper saying you bought it. If the “Paper Promise Gold” does not match their Metals Inventory, you will just get increasingly devalued dollars back from the seller.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now