Kitco asked Peter Schiff how he would invest $100,000 in 2015. He recommends buying gold, mining stocks, and international equities. Peter urges prudent investors to avoid the United States stock market and the US dollar.
I don’t think money should be in dollars, I don’t think it should be in treasuries… I think a lot of inflation is coming and I think the dollar is going to lose a lot of value … [Y]ou need to look at international equities and you need to look at precious metals.”
Here is a fascinating interview with Ned Naylor-Leyland, a precious metals expert with Quilter Cheviot Investment Management. Naylor-Leyland explains the coming divergence between the physical and paper gold markets and how mainstream media doesn’t grasp just how large the daily gold market is.
He also discusses the ongoing Eastern demand for physical gold, especially in China. Did you know China has twice as many retail bullion shops than the United States has Starbuck, Subway, and McDonald’s locations combined?
In his podcast yesterday evening, Peter Schiff shared his thoughts on the huge surge in the stock market over the past couple days. He also takes a look at the latest news from Switzerland. Just weeks after defeating an attempt to back the Swiss franc with more gold, the Swiss National Bank has set negative interest rates in an attempt to further weaken the franc. Finally, Peter digs back into Janet Yellen’s latest statements about the US economy and drop in the price of oil.
Jim Rickards agrees with Peter Schiff. The stock market is in a bubble thanks to the monetary manipulation of the Federal Reserve. Like Peter, he doesn’t think the Fed will raise interest rates in 2015. Instead, Yellen will be forced to start quantitative easing again by the beginning of 2016. This, he argues, will be the beginning of the end of the existing world monetary system. Watch Rickards explain his reasoning to Bloomberg below.
In his latest podcast, Peter Schiff talks about the Federal Reserve removing the phrase “considerable time” from its policy statement yesterday. While they technically did change the language, Peter points out that they then used some linguistic tricks to essentially maintain the same position on the possibility of future interest rate hikes. You can see for yourself in the quote from the Fed’s press release:
Based on its current assessment, the Committee judges that it can be patient in beginning to normalize the stance of monetary policy. The Committee sees this guidance as consistent with its previous statement that it likely will be appropriate to maintain the 0 to 1/4 percent target range for the federal funds rate for a considerable time following the end of its asset purchase program in October…”
After picking apart the Fed’s statement, Peter tries to puzzle out the economic conditions that will justify an interest rate hike in the coming months.
CNBC’s Futures Now interviewed Peter Schiff yesterday to hear what he expects from the Federal Reserve’s announcement this afternoon. They also spoke at length about gold, which Peter points out hasn’t gone down at all in 2014 contrary to many expert forecasts. In fact, when priced in other global currencies and stock markets, gold has risen significantly.
Peter Schiff’s new commentary at Euro Pacific Capital examines the supply and demand factors that could be influencing the plunging price of oil. If you want to listen to Peter discuss the economic repercussions of this possible bubble in black gold, listen to his podcast here.
The stunning 40% drop in the price of oil over the past few months has scrambled global economic forecasts, changed the geo-political landscape, and has severely pressured many energy sector investments. Economists are scratching their heads to determine if the drop is good or bad for the economy or whether cheap oil will add to or decrease unemployment, or complicate the global effort to “defeat” deflation. While all of these issues merit detailed discussions, the first question to address is if the steep drop is here to stay and whether energy prices will stay low enough, for long enough, to seriously reshuffle the economic deck.
If you follow precious metals news, you might have seen a recent article reporting that Russia sold a big chunk of its gold reserves. The article has since been corrected, but it just goes to show how sloppy Western journalism can be, especially when it comes to the reality of physical gold investment.
Laurynas Vegys of Casey Research has published a new article exposing this poor reporting. He goes on to dig deeper into the extremely bullish actions of Russia, which appears to prefer gold over the US dollar.
What we’re seeing here is not some haphazard pattern of purchases. Quite the contrary, this is a trend that has been in motion for quite a while, right under the noses of indebted Western governments and against the backdrop of unprecedented rounds of money printing by the world’s major central banks.
Earlier today, we reported on the potential effect plunging oil prices could have on the Federal Reserve’s plans to raise interest rates. Peter Schiff addressed exactly this is problem in his latest podcast. While many people see lower oil prices as a boon to the economy (who doesn’t want to pay less to fill up their gas tank?), Peter explains why this is a narrow-minded analysis. If the oil boom was actually a bubble, it could have dire implications for the United States.
If you want to understand the fundamental issues at play with the plunge in oil prices that is rocking the financial world, you can’t miss this segment from the Peter Schiff Show.
I don’t believe the Fed… is going to allow that recession [from falling oil prices]. They’re going to do the only thing they can do to stop it. That is unleash a tidal wave of new money in QE4, which is going to be bigger than QE1, 2, and 3 combined…”
Financial markets are watching the Federal Reserve this week to see if they change any of their language regarding monetary policy going into 2015. Janet Yellen will give a statement on Wednesday, and how she addresses interest rates is of particular interest. Economists are expecting the Fed to drop the phrase “considerable time” from their statement, which could indicate an interest rate hike in the first half of next year. This would be the rational course of action if the US economy is actually improving, as the Fed claims.
However, as Peter Schiff has been saying for some time, the economy is not really improving. Peter expects that the Fed will find more excuses to not only keep interest rates down, but to actually start up another round of quantitative easing before too long.
Enter renowned financial manager Bill Gross. Last week, he suggested that the plummeting price of oil might be that very excuse.