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This Month in Gold – August 2015

POSTED ON August 31, 2015  - POSTED IN Key Gold Headlines

South Korea, China Buying Up Gold
Reuters, Bloomberg – South Korea and China both reported an increase in gold purchases last month. Based on first-half sales through the country’s largest gold merchant, South Koreans are on pace to purchase $860 million in bullion – a yearly record. Analysts estimate South Koreans hold around 800 metric tons of gold in households and private vaults. China upped its gold reserves by 1.1% in July, an increase of about 19 tons. In an unexpected update, Chinese officials said the country owns about 1,677.4 tons of gold. The previous update came in July, after China had been silent on the size of its reserves for six years. Read full South Korea Article>> Read full China Article>>

Perth Mint Gold Sales Hit 9-Month High
Reuters – Gold sales at the Perth Mint climbed to a nine-month high in July. The spike followed a similar rise in US Mint sales of gold coins, which hit a two-year high last month. Perth Mint sales of gold coins and minted bars rose to 51,088 ounces in July, from 31,019 ounces in June. That was the highest increase since October 2014. The Perth Mint runs the only gold refinery in Australia, which is the world’s second-biggest gold producer after China. Read Full Article >>

American Pipe Dreams: Dissecting Mainstream Misinformation (Video)

POSTED ON August 31, 2015  - POSTED IN Interviews, Videos

Stefan Molyneux hosted Peter Schiff on Freedomain Radio last week. They discussed at length the decline in the United States equity markets and the effects of Federal Reserve monetary policy. They also had a broader conversation about the fundamental economy of the US, as well as Peter’s track record of economic predictions. In the second half, they got into a discussion about the big-name presidential candidates, Jon Stewart’s retirement, and what Peter would do if he were elected president.

The World Is Preparing for a Post-US Dollar Economy (Audio)

POSTED ON August 28, 2015  - POSTED IN Interviews, Videos

Peter Schiff spoke with the Shadow of Truth podcast last week. They had a friendly conversation about the Chinese yuan, the downfall of the US dollar, and the condition of Peter’s imprisoned father, Irwin. They also discussed the track records of the Federal Reserve Chairmen and how the price of gold can be used as a yardstick to judge the success of their monetary policies.

Alan Greenspan used to say that he could tell whether or not he was doing a good job by the price of gold. If the price of gold was lower than $400 an ounce, he was doing a good job, and if it was above, he was doing a bad job…

[So] Bernanke wants to discredit gold, because gold is discrediting the Fed. Gold prices going up is a vote of ‘no confidence’ in the fiat money that the Fed is creating. What is really a barbaric relic is the federal reserve note, the dollar, just a piece of paper backed by nothing. Gold is real money. It has a tradition of safety. Paper money has a tradition of failure.”

Ray Dalio Follows Peter Schiff’s Lead: Watch for Minor Rate Hike, then QE4

POSTED ON August 28, 2015  - POSTED IN Key Gold Headlines, Original Analysis

In mid-July, Scott Nations of CNBC as much as laughed in Peter Schiff’s face when Peter predicted the Federal Reserve may raise interest rates a very small amount before launching a fourth round of quantitative easing in 2016. Nations said:

It seems that you’re a little bifurcated here. You say that you think the Fed may raise rates a little bit by the end of the year, but that they’re also going to implement QE4. Which is it? Because those are absolutely binary. Those are completely polar opposites… How in the world do they raise rates and institute QE4?”

Peter clarified: “No, no, no, they would reverse that. Let’s say they raise rates to 25 basis points. Then by 2016, they lower them back to zero and do QE4.”

Jackie DeAngelis jumped in, reproaching Peter with the stern voice of a mother chiding a foolish child: “They cannot raise rates, then lower them back to zero, Peter.” (Watch the full interview for yourself here.)

Do you think CNBC would have reacted the same if Peter’s forecast came from one of the largest hedge funds in the world? Because now it has.

15 08 28 dalio

When World Leaders Tell the Public, “Don’t Panic”…

POSTED ON August 27, 2015  - POSTED IN Key Gold Headlines, 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.

Bloomberg recently published an article about how world political leaders don’t have too much to say about the current sell off in equities – the worst of its kind since 2008. It states:

It’s wiped out more than $8 trillion in the value of global equities, leaving virtually no market unaffected, yet reaction from world leaders so far has ranged from muted to dismissive.”

15 08 27 world leaders

Essentially, the message is that despite people’s portfolios hemorrhaging value and the world economy clearly starting to slow down, this is no big deal. There is no reason to panic and get out of the stock market. Oh – and it’s also China’s fault.

Ron Paul’s 80th Birthday Speech: The Future of Liberty & American Prosperity (Audio)

POSTED ON August 27, 2015  - POSTED IN Guest Commentaries, Videos

Dr. Ron Paul turned 80 years old last week, and the Mises Institute threw a birthday party for him. Tom Woods and Judge Napolitano introduced Dr. Paul with stirring speeches, reminding us of how pivotal Ron Paul has been to the libertarian and free-market movements.

Dr. Paul delivered a resounding inspirational talk directed at those who strive to spread the message of free markets and a free society. While he reminded us of the terrible effects of an overreaching federal government and central bank, his message is primarily one of hope.

Argue the case for liberty. Then you are going to argue the case for the greatest prosperity for the greatest number of people, the largest middle class. Then we have a society where if the goal is to seek excellence in virtue, you can do it. It’s all your responsibility… If you accept the notion that the government should protect us in a moral way and tell us what our habits should be, or we need the government to redistribute wealth, it can’t be done without the taking away of liberty.”

Lew Rockwell originally published this address on his podcast, and SchiffGold has compiled it into a YouTube video for you to enjoy.

Could Americans Someday Use Dollars as Napkins?

POSTED ON August 27, 2015  - POSTED IN Key Gold Headlines

Stories about plummeting stock markets, a sputtering Chinese economy, and the yuan versus the dollar have dominated financial news over the past few weeks. Lost in the din: the economic disaster continuing to unfold in Venezuela.

Venezuelans face crippling shortages of basic staples as their currency, the bolivar, continues to inflate at breakneck speed.

bolivar

Hyperinflation has rendered the bolivar practically worthless. A photo uploaded to Reddit of a man using a 2 bolivar note as a napkin went viral last week. Business Insider reported that based on the official exchange rate, the makeshift napkin was worth about 32 cents. But in reality, the man didn’t waste nearly that much.

Market Correction May Turn into Bear Market (Video)

POSTED ON August 26, 2015  - POSTED IN Interviews, Videos

CNBC’s Futures Now got Peter Schiff’s take on United States stock market volatility. Peter refuted the idea that Chinese markets may be influencing US stocks, arguing that the Federal Reserve’s lack of transparency about its monetary policy is really to blame. He also briefly discussed the gold market, and why hedge funds shorting the yellow metal could be in for a world of hurt.

Yes, I’d be buying gold. The hedge funds have actually been shorting. Apparently a few weeks ago it was the first time ever that the hedge funds have been net short. Of course, we’ve had an $80 rally in the past couple of weeks. We’ve given back about $20 now. But I think there are a lot of people who are trapped short gold who are going to be in for a world of hurt. In fact, if we get back above $1200, it’s going to be some real pain for those shorts…”


The Fed Is Spooking the Markets, Not China

POSTED ON August 26, 2015  - POSTED IN Original Analysis

Peter Schiff has been in the financial media a lot this week, presenting his interpretation of US market volatility and what it means for Federal Reserve monetary policy. Watch a couple of his appearances here and here. Below is Peter’s thorough written commentary on the matter, originally published on Monday by Euro Pacific Capital. Find it here.

Fasten your seat belts, this ride is getting interesting. Last week, the Dow Jones Industrial Average was down more than 1,000 points, notching its worst weekly performance in four years. The sell-off took the Dow Jones down more than 10% from its peak valuations, thereby constituting the first official correction in four years. One third of all S&P 500 companies are already in bear market territory, having declined more than 20% from their peaks. Scarier still, the selling intensified as the week drew to a close, with the Dow losing 530 points on Friday, after falling 350 points on Thursday. The new week is even worse, with the Dow dropping almost 1,100 points near the open today before cutting its losses significantly. However, no one should expect that this selling is over. The correction may soon morph into a full-fledged bear market if the Fed makes good on its supposed intentions to raise interest rates this year. Have no illusions, while most market observers are quick to blame the sell-off on China, this market was given life by the Fed, and the Fed is the only force that will keep it alive.

15 08 26 janet yellen

Financial Media Starting to Agree with Peter Schiff: QE4 Is Coming

POSTED ON August 26, 2015  - POSTED IN Key Gold Headlines, Original Analysis

In an attempt to stem stock market losses and stimulate a sagging economy, the Chinese central bank slashed its interest rate on Tuesday.

As Bloomberg reported, it was the fifth Chinese interest rate cut since last November.

The one-year lending rate will drop by 25 basis points to 4.6 percent effective Wednesday, the Beijing-based People’s Bank of China said on its website Tuesday, while the one-year deposit rate will fall a quarter of a percentage point to 1.75 percent. The required reserve ratio will be lowered by 50 basis points for all banks to cover funding gaps, it said.”

printing press

Of course, the United States stock market also plummeted Monday, shedding more than 1,000 points in early trading. With signs the American economic recovery might not be as robust as the government wants you to believe, what steps might the Federal Reserve take to shore things up in the near future?