Last week, the yield curve inverted, with the yield on the 10-year Treasury falling below the yield on the 2-year for the first time in 12 years. This has historically been a good predictor of recessions. US stock markets sold off on the news, with the Dow shedding 800 points. As Peter Schiff noted in his most recent podcast, the mainstream also suddenly started talking about the possibility of an economic downturn.
As Peter put it, the media has flipped the narrative on Trump.
The gold market took a one-two punch on Tuesday as Trump made some concessions in the trade war and inflation numbers came in a bit higher than expected. Peter Schiff talked about it in his latest podcast, saying gold traders still don’t understand the gold rally.
Several currencies have been strong against the dollar over the last couple of days, but as Peter Schiff said in his podcast, the biggest gainer wasn’t a currency at all. It was real money – gold.
Gold hit six-year highs on Monday and set records in a number of currencies. It continued to move upward on Tuesday. Overnight, the yellow metal pushed briefly above $1,500.
The Federal Reserve’s modest rate cut last week disappointed President Donald Trump. He wanted more and he was quick to criticize Powell and Company. The very next day, the president trumped the Fed by slapping down the tariff card.
Peter Schiff talked about the president’s move in a recent podcast.
The Federal Reserve cut interest rates for the first time in over a decade Wednesday. And Jerome Powell left the door open for future cuts.
Peter Schiff broke it all down on his most recent podcast, saying this is the first interest rate cut on the short road to zero.
We got the first Q2 GDP estimate on Friday. Economic growth slowed to 2.1%, but the number came in slightly better than economists had projected.
In his most recent podcast, Peter Schiff broke down the GDP report. As he put it, when you actually look beneath the numbers, the quarter was a disaster.
This was a horrible quarter for GDP.”
Gold has pushed much higher in recent weeks, breaking through the $1,400 level and holding. Silver has also rallied and has started to close the gap with the yellow metal. In a recent podcast, Peter Schiff said we are seeing signs that the investment world is starting to catch on. The psychology has shifted and investors are started to realize that the gold bull-run is for real.
A lot of it has to do with the anticipation of more easy money from the Federal Reserve. Fed-speak continues to boost anticipation of an interest rate cut. The only thing dampening expectations is the possibility of higher inflation. Peter said that doesn’t matter. Inflation or not, the Fed is cutting rates.
The silver-gold ratio has been way out of whack for months. In recent weeks, it has been above 90-1 and approached 93-1. The modern average over the last century is around 40:1. This tells us that silver is significantly undervalued compared to gold.
Peter Schiff has described this as silver on sale.
Silver has never been this cheap in terms of gold … Meaning that it’s a great time to be buying silver.”
Peter talked about the silver market in his most recent podcast. Could the white metal be joining gold’s party?
Markets reacted strongly to the June jobs report on Friday. Stocks fell. Bonds and gold got clobbered. The dollar got a boost.
In his latest podcast, Peter Schiff said the markets overreacted to the report. In fact, he said the jobs numbers were “no big deal.”
Gold dropped well below $1,400 on Monday. Mainstream analysts said sell-off was because hope for a resolution in the trade war interjected some optimism into the markets, pumped up risk sentiment and put a damper on safe-haven buying. But that optimism apparently faded fast. On Tuesday, gold began to rally again and pushed back above $1,400.
The fact is economic realities don’t support optimism.
In his latest podcast, Peter Schiff said he sees a lot of days with big moves up for gold in the future because the yellow metal has a lot of catching up to do.