This post was submitted by Erik Oswald, SchiffGold Precious Metals Specialist.
Russia and China have signed a gas deal that would side-step Western markets. This agreement is just the latest development as the two countries continue to cement ties and diversify their holdings away from the United States. Reaching this agreement further removes the Chinese from dependence on oil purchased from OPEC and thereby puts another nail in the coffin for the petrodollar standard. Not only that, but its announcement comes just days after Mikhail Gorbachev warned that the world is nearing another Cold War.
Last week, an analyst for Bank of America predicted that gold could rise to $1,350 if Switzerland passed the “Save Our Swiss Gold” initiative at the end of November. That’s almost 17% higher than today’s gold price. The media is not just watching the price of gold in the weeks leading up to the Swiss Gold Initiative – the value of the Swiss franc in relation to the euro has also been closely eyed. Unfortunately, as you can see in this article from Bloomberg, the financial media generally makes it sound like the Swiss Gold Initiative would be terrible for the franc.
However, the Swiss Gold Initiative is more than just a referendum on returning to sound money policies in Switzerland.
A couple weeks ago, we reported on Alan Greenspan’s prediction that the price of gold would rise. He said this at the New Orleans Investment Conference. In an interview at the Council on Foreign Relations (CFR) the next week, Greenspan commented even more on gold, though the CFR did not publish his thoughts in the official transcript. Most notably, Greenspan explains what so-called “gold bugs” have been telling the skeptical financial media for years:
Gold is a currency. It is still by all evidences the premier currency, where no fiat currency, including the dollar, can match it… Intrinsic currencies, like gold and silver for example, are acceptable without a third party guarantee…”
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. Check out Peter Schiff’s Gold News every Friday, when Erik will recommend a new entertaining and educational video – the Friday Feature.
For this week’s Friday Feature, I’d like to present “The American Dream”. This animated short takes an elementary look at how the American people have had the monetary rug pulled out from under them. The film investigates the causes of the financial crisis, the origins of money and examines those responsible for creating the Federal Reserve System. While much of the information in this film will be common knowledge to most contrarians, I believe this film is a great tool for educating younger generations about the Federal Reserve and the history of money. Enjoy!
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The latest jobs numbers were released today, and the financial media is making much of the drop in the unemployment rate – now 5.8% according to the Bureau of Labor Statistics. Obviously, the economy must be getting better, just like Janet Yellen and Barack Obama have been telling us, right? Not so fast. The results from Tuesday’s elections tell a different story, as exit polls showed that the vast majority of voters were primarily concerned about the economy. Main Street Americans are waking up to the fact that this recovery is a hoax.
Even major news outlets like the LA Times are reporting on the new phenomenon of “secular stagnation,” which Peter Schiff addresses in his commentary below. ZeroHedge summarized how bogus the latest jobs numbers are, pointing out that most of the jobs gained are low-end service sector positions, while high-quality full-time work is dropping. Most alarmingly, it looks like there may soon be more waiters and bartenders in America than manufacturing workers:
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 lecture, Dr. Andrew Bernstein discusses why capitalism is the best system for men to live under, from both socio-economic and moral standpoints. Free markets are ideal for society:
- They make available an abundance of inexpensive and effective consumer products.
- They give the poorest among us the opportunity to rise into the middle and upper classes of society.
- They create an environment where man’s mind is able to function to the best of its ability.
In his latest video, Peter Schiff appeals directly to Swiss voters – send a message to your government and the entire world by passing the “Save Our Swiss Gold” referendum on November 30th. This historic vote would force the Swiss National Bank to:
- Keep 20% of its assets in physical gold bullion (currently less than 8% of its reserves).
- Repatriate all Swiss gold holdings to Switzerland.
- Not sell any more Swiss gold.
Find more information about the initiative here, here, and here. Full transcript below.
SchiffGold and other major precious metals dealers have just received notice that the United States Mint has temporarily sold out of its Silver American Eagle bullion coins. There has been a huge surge in demand for silver bullion in the past week, as the price of the metal hit four year lows. Clearly investors are taking advantage of this buying opportunity.
We heard last week that US Mint sales of silver coins hit a 21-month high in October. The US Mint sold 5.79 million ounces of silver in October. This is the highest sales report since January 2013, when the Mint set a monthly record of 7.5 million ounces. As we reported last week, demand for silver coins has been on the rise across the globe, draining supplies from both private and national mints.
The price of silver has hit four-year lows. This isn’t because physical silver is no longer a valuable, safe-haven investment, but because mainstream economists and investors believe the Federal Reserve’s hype that the US economy is recovering. Peter Schiff explains why the economy isn’t recovering here.
Physical silver is not just an important investment asset, though. As this thoroughly fascinating infographic from the Visual Capitalist shows, silver is an essential linchpin in modern technology, health care, and medicine. Silver’s industrial demand and diminishing supply is just another reason to buy the white metal now, while prices are still low.
The Mises Institute has released the second part of an exclusive interview between its President Jeff Deist and Patrick Barron, a private banking industry consultant. Find the first part of this engrossing interview here. In this second half, Deist and Barron discuss:
- How US dollar supremacy might come to an end with a whimper, instead of a bang.
- How the Bundesbank is a potential savior for the world monetary order, while the IMF is a paper tiger.
- How elites will have an increasingly hard time denying gold its role in the global monetary system.
- How America’s fiat dollar corrupts cultures, as well as economies.
