Stefan Molyneux interviewed Peter Schiff on Freedomain Radio. In this hour-long conversation, Stefan and Peter cover the gamut of essential economic issues: the gold market, hidden inflation, the so-called US economic “recovery,” and the ultimate death of the US dollar. This is a great video to catch up on nearly every hot-button issue in the media, from China’s economy to Donald Trump’s campaign to Puerto Rico’s default to American’s misunderstanding of high minimum wage.
In his 100th podcast, Peter Schiff looks at the latest lousy data from the labor market. Last quarter’s wage growth is the worst since the government started recording it in 1982. He also discusses the disparity between the paper and physical gold markets, and the reactions his brokerage and metals clients have had to the growing bubble of the US dollar.
You have more paper gold trading relative to the actual physical supply than ever before… But in the real, physical [gold] world, the actual buyers – it’s skyrocketing. The mints are running out of supply. Orders are getting backed up… Nobody is calling to sell. Everybody who’s calling is calling to buy more… On the other side of the coin, people who have brokerage accounts and asset management accounts, most of the calls I’m getting now are from clients who are wanting to sell…
“My Canadian clients who hold the same stocks as my US clients, their statements are going up. Because their statements are in Canadian dollars… But people should react the same way, because this is a bubble in the dollar. This is a bubble in confidence in the US recovery that doesn’t exist. Confidence that the Fed has finished QE, when they’ve only just paused. Confidence that they’re about to embark on a rate tightening cycle, when I don’t think we’re anywhere near that…”
Peter Schiff appeared on MSNBC last week to talk about why gold is an essential asset for protecting your wealth from inflation and a failing US dollar. The conversation became a bit combative when Peter was asked to defend his claim that government inflation measures are inaccurate. Unsurprisingly, the MSNBC anchor took it for granted that government statistics are implicitly trustworthy.
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.
A couple weeks ago, we shared a segment of Peter Schiff’s recent interview with Reason TV. Here is the full interview with Reason’s Matt Welch from FreedomFest 2015. They discuss the future of the United States economy, the upcoming presidential election, and China’s relationship to the US.
Things change quickly when they change. This idea that America is an all-powerful nation is just an idea. It’s based on a myth. At one time that was true. We were a mighty nation. We did manufacture the goods that everyone wanted to buy. We were the lowest cost producer of manufactured goods. We had the most economic freedom. We had the lowest rates of taxes, the fewest regulations. We were a very free society… We built an incredible country based on those principles. We’ve abandoned those principles, and the wealth has been abandoned as well.”
Jim Grant joined Kitco News to share his thoughts on the gold market. Author of The Forgotten Depression and publisher of Grant’s Interest Rate Observer, Grant is one of the most reserved and staunch gold bulls in the financial media. Grant admits he is extremely frustrated with the gold market given the underlying fundamentals of the global economy. But with his typically patient demeanor, he maintains that now is a great opportunity to buy. Grant prefers to invest in non-numismatic, physical gold bullion, like Krugerrands. He also buys gold mining stocks.
We are in one of the most radical periods of monetary experimenting in the annals of money. It could be this all works out. That is a possibility. I rate that as a very low probability. For that reason, you want to have exposure to the reciprocal asset of the paper assets that are now most popular. Gold to me is now the conjunction of price, value, and sentiment. I am very bullish indeed.”
Jim Rickards appeared on Bloomberg to explain why gold hasn’t actually lost any real value. It’s just the strength of the dollar that has pushed down nearly all commodities and currencies. Rickards argues that now is a very good time to buy the yellow metal, especially if you’re looking for the safest way to preserve your wealth from fluctuations in fiat currencies.
Fox Business asked Peter Schiff to explain why investors should continue to hold on to their gold, rather than sell it at a loss. Peter clarified that he has never recommended investing only in gold and not in stocks. Instead, owning gold is a way to protect yourself from fiat money and central bank policy.
A lot of people were as bullish on stocks…in 1999, and they were that bearish on gold. But again, I’ve never told people to sell all their stocks and hold only gold. I tell people to have 10-15% of your portfolio in gold. I stand by that allocation. But I think stocks are very expensive in the US. I think they are more expensive in general than they were in 2000, because the Fed has given more help to the market.”
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…
Gold fell to about $1,090 an ounce last night after the biggest single-day decline in its price in two years. It is now hovering around $1,110 an ounce.
Market consensus is that the sharp drop in price was triggered by major selling in the Shanghai gold market by gold speculators. The drop in price is not a product of fundamentals.
In fact, analyst Todd Horowitz told Bloomberg that he believes many investors see this as a major buying opportunity. He points out that from a technical perspective, gold is in very unusual territory when compared to the S&P 500:
It is a hard asset, a commodity, that I think everybody should own in part of their portfolio… I think gold is a hard asset that typically appreciates in value like everything else. If you compare it to the S&P, the S&P is twice as much as gold is now, which is one of the largest discrepancies in history, which means we should see a divergence back into that. Fundamentally, we have seen probably a low point here.”