In his most recent gold videocast, Peter Schiff said he thinks the recent Fed rate hike was the end, not the beginning of the tightening cycle. The next move will be a drop back to zero and another round of quantitative easing. When that happens, investors who have been selling gold believing the economy is on the rebound will have to reverse their bets and begin buying as gold rallies.
It’s looking more and more like Peter was right, and now some of the mainstream folks are starting to catch on. A recent Bloomberg article proclaimed “gold is back in fashion.” The reason? People are beginning to recognize the shakiness of the economy. As a result, they are turning back to gold as a safe haven:
The $15 trillion rout in global equity markets since May is reawakening the lure of gold for investors seeking safety.”
Mining industry leaders say gold production has reached its peak for the cycle, and that we should expect falling mine output and tighter supply in the future.
According to CNBC, analysts say few big projects will reach the point of actual production over the next year:
The lack of new assets and declining output at existing mines is expected to curb gold supply, a glimmer of hope for surviving producers of the precious metal in an industry coming to terms with a rush of investment when prices were far higher.”
Over the past two weeks, Peter Schiff released a podcast and a Schiff Report video. He also appeared on CNBC, the Daily Ledger, Fox Business, X22, Newsmax, Yahoo! Finance, Stefan Molyneux’s podcast , and CCTV America.
Since the beginning of the new year, Peter has focused on the horrible start on Wall Street and the likelihood of an economic downturn in 2016. In several appearances, he continued to argue that the Federal Reserve won’t be able to maintain its interest rate increase, and will ultimately drop the rate back to zero and launch another round of quantitative easing. Peter also offered his views on the State of the Union Address.
Follow these links to jump to the video or article you’d like to see:
1. CNBC Admits Peter Schiff Was Right, Jan. 14
2. CNBC: Blame Market Volatility on the Fed, Not Commodities, Jan. 14
3. Yahoo! Finance: What Will the Fed Blame the Coming Recession On?, Jan. 14
4. Stefan Molyneux’s podcast: The State of the Union: A Big Joke on the American People, Jan. 13
5. Schiff Radio podcast: Obama Delivers the Most Clueless State of the Union Address Ever, Jan. 13
6. The Daily Ledger: Yellen Could Pave the Way for Hillary with More Easy Money, Jan. 11
7. Fox Business: Bull vs. Bear; When Will the Stock Market Capitulate?, Jan. 11
8. Schiff Report: Deja Vu All Over Again: Stocks Plunge; Gold Surges; Markets Ignore Reality, Jan. 9
9. X22 Report: Next Crisis Will Be Much Harder on All Americans, Jan. 5
10. Peter Schiff Says Wild Ride on Wall Street Will Continue Until Fed Admits the Truth, Jan. 5
11. CCTV: Peter Schiff: Puerto Rico Bailout Immoral; Bankruptcy a Better Solution, Jan. 4
This article was submitted by Addison Quale, SchiffGold Precious Metals Specialist. Any views expressed are his own and do not necessarily reflect the views of Peter Schiff or SchiffGold.
Check out this article on an absolutely mind-boggling phenomenon taking place in Switzerland. Apparently Local Cantons (what states are apparently called over there) are actually telling taxpayers not to send the money they owe in to the government – at least not right away. They’re saying just hold on to the cash until the deadline.
What could possibly be a good reason for Leviathan to not want its food/funding ASAP? Well, when you live in a land of negative interest rates, things get a bit tipsy turvy. I guess it’s a bit like bizarro-world from that episode of Seinfeld – where up is down and bad is good.
China’s largest bank is buying the lease on a huge gold vault in London, another sign of gold’s continuing shift from West to East.
As the Telegraph put it, acquisition of the 1,500 ton vault will enlarge ICBC Standard Bank’s footprint in the city’s bullion market:
The Chinese and South African lender is aiming to fill the gap left by Western banks, which are retreating from commodities to cut costs and reduce regulatory burden.”
The flipping of the calendar to 2016 has not dampened the demand for silver bullion coins.
The US Mint announced its first weekly allocation of American Silver Eagles for 2016 and the number was quadruple the amount rationed during each of the last five months of 2015.
Sales have been brisk, according to Reuters:
Peter Schiff has been saying for months that the US economy isn’t nearly as good as Federal Reserve and government officials want you to believe.
Mainstream analysts and pundits seem to be doing their best to toe the line and paint a rosy picture, but we are starting to see a lot of cracks in the narrative. It’s becoming increasingly difficult to ignore the signs of real trouble in the economy.
A recent CNN story warning us to brace for a “rare recession in corporate profits” as fourth quarter earning begin coming in over the next week serves as a case in point:
In the weeks leading up to the Federal Reserve’s interest rate hike announcement, almost every mainstream analyst and pundit was predicting doom and gloom for gold.
Everybody, that is, except Peter Schiff. He predicted good things for gold, and it’s looking more and more like he nailed it.
Conventional wisdom was that a rise in interest rates would indicate the US economy has recovered and is continuing to improve. If this were true, gold would lose its appeal as a safe haven and investors would begin dumping the yellow metal, driving its price down.
SchiffGold has just acquired a very limited quantity of mint-condition, uncirculated 1979-1982, 1-ounce Maple Leaf Gold Coins. These 99.9% purity coins are the perfect opportunity to buy gold near the market bottom. SchiffGold has not seen Maple Leafs priced this low since we began business.
This sale will end when our supply runs out.
China added another 19 tons of gold to its reserves in December, continuing a buying spree analysts expect will continue through 2016.
Since announcing its reserves for the first time in six years last summer, the People’s Bank of China (PBOC) has steadily added to its hoard. The PBOC added 14 tons in October, 15 tons in September, 16 tons in August, and 19 tons in July. It accelerated the pace in November, purchasing 21 tons, and continued to buy gold at a steady clip last month.
