Physical Gold Best Protection from Financial Asset Bubble (Video)
Renowned investors like Bill Gross and Carl Icahn have warned Fox Business that a bubble is forming in financial assets. Icahn told Fox:
[In] the financial markets, I believe that there really is a bubble brewing. Interest rates now are at a low that in the history of the Federal Reserve, they’ve never been held down this long. I don’t think anyone will deny it’s unchartered territory. It could be very, very destructive.”
Fox followed up with Marc Faber to get his take in the interview below. Faber warned of a destructive bubble in even stronger terms and recommended investors turn to gold mining shares, as well as physical precious metals for protection. He advocates storing your gold and silver internationally, for fear of confiscation from the federal government.
Peter Schiff doesn’t necessarily agree the government would take such a drastic course of action. The government doesn’t have the same incentives to seize physical gold nowadays. However, if you are interested in storing your gold and silver abroad, SchiffGold’s Precious Metals Specialists can help you find a safe and trustworthy custodian.
Highlights from Faber’s interview:
“I think Carl Icahn just said that it could be very destructive. I would say that it’s not that it could be destructive. It will be destructive. The question is obviously when. Because it’s not just the Fed that has fueled the bubble. It’s the other central banks, the ECB, that have fueled the bubble, mostly with sovereign debt… As they bailed out Greece repeatedly, the problem became bigger and bigger and bigger. This is the problem of central banking today. They do not solve problems, they postpone problems. Then you have this whole suppression of individual risks that then become one day colossal, systemic risk…
“Basically we are six years into an economic recovery. I am aware that some economists and strategists think that the economic expansion will just continue to go along. But there are huge distortions in the market, where basically financial assets have been going up very substantially, and real wages for the typical household or the real household income has been either flat or down. So it creates a huge market distortion…
“It will be very difficult to hide [from the coming crisis], because even bank deposits may not be safe. Relatively inexpensive are gold mining shares, silver mining shares, and physical gold and silver. But you have to hold it physically and preferably outside the US… Because in the US, and even in Europe and Switzerland, there is a threat that if things go bad, the central banks will blame gold holders for the disaster…“
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