In his latest video blog, Peter Schiff tears apart Ben Bernanke’s latest public statements about the state of the economy and the Fed’s ability to taper or end its stimulus.
When the gold market wakes up to the fact that there is no tightening, there’s just endless easing, that we just have one big bubble – then I think we’ll have a mass scramble on the part of everyone who sold their gold to buy it back. Where they’re going to get it, I don’t know. Who’s going to be sellers at these levels once that moment happens…I don’t know. So I would expect to see a very, very rapid rise in the price of gold.”
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By Chris Marcus
Almost every time there is a Fed meeting, minute release, or congressional testimony by Ben Bernanke, the mainstream media starts speculating again about an end to the quantitative easing programs. Often the coverage will cite a Fed governor or excerpt from the Fed minutes that indicates that there is at least some thought to ending the programs, but the Fed’s actions speak for themselves. Almost five years have passed since the Fed began expanding its balance sheet and it is becoming apparent that even if the Fed actually did plan to unwind its purchases, it really no longer has the means to do so. If the Fed doesn’t buy the bonds, who will?
By Peter Schiff
That’s all, folks. One look at the headlines will tell you the gold bull market is officially over: the stock market is booming, a modest recovery of the US economy is underway, and the dollar is dominating the forex. Time to sell your bullion and get back into US stocks!
Does anyone really believe this story at this point? Haven’t we been through this time and again since 2008? Remember “green shoots”?
The sad truth is that American investors, accustomed to a world of rising stock and housing prices for several generations, are experiencing short-term memory loss. It’s as if their longing for the “good old days” has made them subconsciously suppress any unpleasant memories.
By Jeff Clark from Casey Research
Platinum is a precious metal, as is palladium, though to a lesser degree. However, like silver, both are also industrial metals. Unlike silver, it’s their industrial use that is the primary price driver for both platinum and palladium – and that use is undergoing a fundamental shift.
The largest source of demand for platinum and palladium is the automotive industry, for use in autocatalysts. In turn, the fortunes of the auto industry are sensitive to the health of the world’s major economies. We’ve been bearish on platinum-group metals for years, primarily because we weren’t convinced a healthy – much less roaring – world economy could be sustained when so many governments continue spending beyond their means.
In his latest video blog, Peter Schiff picks apart the data the media keeps touting as proof of a recovery. He analyzes the Federal Reserve Advisory Committee’s latest meeting minutes in which they admit quantitative easing has been a failure, confirming all the claims Peter has made for years about the real effects of QE. Peter also talks a bit about a possible bottom in the gold price after a drop in the spot price on Friday corresponded with the biggest weekly gain for gold stocks since January 2012.
[The Fed’s Advisory Council is] admitting that the Fed’s monetary policy has not been effective. It hasn’t produced legitimate economic growth. All it’s done is inflate asset bubbles that have made us feel good, that have made us borrow too much money and spend too much money. The Fed has completely distorted the market, and that when the QE stops it’s going to be a complete disaster. That’s basically what they say. The party’s going to end and it ain’t going to be fun.”
Follow us on Twitter to stay up-to-date on Peter Schiff’s latest thoughts: @SchiffGold
Interested in learning about the best ways to buy gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!
By Mike Finger
June marks the beginning of summer – a season of beach vacations, garden bounties, and general disinterest in the market. It is well-known that precious metals and other commodities typically face malaise at this time of year as speculators unwind their trades and potential buyers spend their spare cash instead on hotel rooms and recreation.
But in recent years, June has come to mark a time of great rejoicing for those of us most passionate about a sound money economy. Last Sunday, many of us returned from what can only be described as the largest face-to-face alternative currency economy in the world. The Porcupine Freedom Festival just celebrated its tenth year, dubbed “PorcFest X,” with record attendance and alt-currency activity.
Casey Research’s Gold Commentary
By Bud Conrad
How can we explain gold dropping into the $1,300 level in less than a week?
Here are some of the factors:
In his latest commentary, Peter Schiff encourages gold bears to stay focused on the big picture: gold is moving from indebted nations to emerging markets that are reducing their dependence on US dollar reserves.
By Peter Schiff
The news of the month comes from the large Mediterranean island of Cyprus, where Keynesian economic planning left the economy facing complete bankruptcy. The result was an unprecedented step forward in the financial collapse of the West: direct forfeiture of bank deposits.
Despite official protestations to the contrary, this fallout will spread to a bank near you.
A Crystal Ball
The recent history of Cyprus is a microcosm of the story of all Western nation-states.
Peter Schiff’s latest commentary looks at what happens when a country becomes addicted to easy money, and explains why the Fed will keep pumping money the US economy until a currency crisis forces it to stop.
For years we have been warned by Keynesian economists to fear the so-called ‘liquidity trap,’ an economic cul-de-sac that can suck down an economy like a tar pit swallowing a mastodon. They argue that economies grow because banks lend and consumers spend. But a ‘liquidity trap’ convinces consumers not to consume and businesses not to borrow. The resulting combination of slack demand and falling prices creates a pernicious cycle that cannot be overcome by the ordinary forces that create growth, like savings or investment. They argue that a liquidity trap can even resist the extraordinary force of monetary stimulus by rendering cash injections into useless ‘string pushing.’ Some of these economists suggest that its power can only be countered by massive fiscal stimulus (in the form of a world war or other fortunately timed event) that leads to otherwise unattainable levels of government spending.
