Mark Dice walked around downtown Encinitas, California and tried to sell a 10-ounce bar of silver for only $10. At today’s prices, that bar is worth about $160. He asked men and women, young and old, if they’d like to buy it. He even lowered the price to $1 while standing directly out front of a gold dealer. How many people do you think took him up on the offer?
This is a great video to show the naysayers who argue that precious metals are in a bubble. There are many people who think the prices of gold and silver are ready to plummet at any time. They predict gold could drop as low as $700 an ounce and silver could fall into the single digits.
However, bubbles are often associated with a certain amount mania. The asset or market in a bubble is often widely considered to be a valuable investment.
Did you know SchiffGold has a YouTube channel with exclusive videos from Peter Schiff? When you subscribe, you’ll be the first to see:
- Peter’s latest analysis of the gold market.
- Interviews with experts like Jim Rickards and Axel Merk.
- High-definition videos of our gold & silver products.
Watch Peter’s introduction to our channel below, then follow the links to subscribe.
If all the world’s debt were backed by gold, the US dollar price of the yellow metal would be nearly $34,000. Frank Holmes of US Global Investors explains the math in an insightful article.
- 5.9 billion ounces = total above-ground gold in world.
- At $1,181 per ounce, that’s about $7 trillion.
- Total global debt = $200 trillion.
- $200 trillion divided by 5.9 billion = $33,898.
It’s an eye-opening number in a world where the gold standard reigned supreme for most of modern history.
The price of gold shot up about 1.5% today, breaking through the technically significant barrier of $1200. Gold closed around $1185 on Wednesday, and rallied today to a peak of $1206. It now hovers around $1202.
The jump in price comes on the news that the Federal Reserve is likely to keep the federal funds interest rate at zero for some time. In a press conference yesterday, Janet Yellen hinted at rate hikes later in the year, but ultimately reaffirmed that any rise in rates is entirely data dependent.
In case you missed it earlier, here’s Peter Schiff’s analysis of the FOMC’s meeting and Yellen’s statements:
Get Peter Schiff’s latest gold market analysis – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!
It’s official: China now plays a small role in directly setting the price of gold in Western markets. For the first time ever, a Chinese bank has joined the twice-daily gold price fixing process run by the London Bullion Market Association (LBMA).
As we reported back in February, this news was anticipated. The LBMA has replaced the old London Gold Fix with a new, electronic mechanism in an effort to increase transparency in the gold markets.
On Friday, Texas Governor Greg Abbott approved a law creating the Texas Bullion Depository – the first state-level precious metals depository in the United States. The bill would also allow Texas to repatriate $1 billion of gold back into the state. The law will go into effect immediately, though it is still unknown exactly where and when the Depository will be built.
In passing this law, Texas joins the ranks of major global economies that want to bring their gold home. Germany, Austria, the Netherlands, and other European nations have already begun to repatriate gold from the New York Federal Reserve or have proposed to begin doing so.
If you’re planning on buying gold later this summer or in the fall, you might want to consider acting sooner.
A looming miners strike in South Africa could push gold prices up in the near to medium-term.
According to a Reuters report, “South Africa’s Association of Mineworkers and Construction Union [AMCU] could launch a wildcat strike if its rival union and gold mining companies extend a wage deal to its members.”
When an investment columnist who makes it a point to tell you, “I am no gold bug,” writes a column entitled “Gold can glitter if stocks hit the rocks,” it should serve as a pretty good indication now may be the right time to invest in gold.
Jeff Reeves writes for MarketWatch, “…given the continued volatility in the stock market and the risk of a correction, it’s worth considering a targeted bet on the precious metal.” Reeves is usually a technical analyst of the precious metals markets, while we look at the fundamental reasons for investing in gold and silver. When these two methods of analysis align, investors should take note.
In fact, there are a number of factors that indicate investors should consider gold now.
Last week, International Monetary Fund Managing Director Christine Lagarde said that the Federal Reserve should delay any interest rate hikes until 2016.
Higher US policy rates could still result in significant market volatility with financial stability consequences that go well beyond the US borders. In weighing these risks, we think that there is a case for waiting to raise rates until there are more tangible signs of wage or price inflation than are currently evident. In other words, we think a rate hike would be better off in early 2016.”
After the bombing of Pearl Harbor, President Franklin D. Roosevelt called Dec. 7, 1941, “A date that will live in infamy.”
When it comes to the US monetary system, June 5, 1933 should share that ignoble title, because that date marks the beginning of a slow death of the dollar.
Eighty-two years ago, the US went off the gold standard when Congress enacted a joint resolution erasing the right of creditors to demand payment in gold. The move was the culmination of actions taken by Roosevelt that year.