Peter Schiff & CNBC Battle Over Gold (Video)

Peter Schiff appeared on CNBC’s Futures Now this afternoon to defend his record on gold. Things got heated, because it seems the stock traders can’t wrap their heads around the strategy of holding physical gold and silver bullion as a long-term hedge against inflation in a well-diversified portfolio. Instead, they’re intent on blasting Peter for not being able to exactly predict when the precious metal will reach new highs.

Of course, Peter is basing his predictions on a fundamental analysis of the American economy and not on short-term technical indicators. Investors who buy gold for a quick profit don’t understand the reason for holding gold in the first place. At the end, Peter tries to point out that history is going to repeat itself – just as the traders missed the 2007 financial crisis, they’re going to be blindsided by the next crash. Enjoy a full transcript of Peter’s responses below the video.

Trader takes on Peter Schiff from CNBC.

Here are Peter’s responses to their interrogations:

“I’ve been consistently telling people to buy gold since it was under $300. And people who have been following my advice for the past thirteen years and have bought gold, are actually doing better than people who have just bought stocks. But I’ve also advised people to buy stocks. I haven’t told people to only buy gold. I’ve told people to have gold as part of a portfolio. So you have to look at my overall investment strategy…

I’m wrong a lot less often than almost everybody else who comes on CNBC. All you do is parade people who are wrong. Think of all the bulls who you brought out here on the stock market when the NASDAQ was at $5,000. Every time they come on… do you tell them how wrong they were? Hey, you told people to buy stocks back in 2000, and look – the NASDAQ is still lower. I’m the only one that you talk about. And you guys put these time horizons on. I never came on the show and said, “I guarantee in two years, gold is going to be $5,000.” I don’t know for sure…

You’re asking me when. I don’t know exactly when it was going to happen. How long was I coming on CNBC, talking about the housing bubble and you guys were laughing at me when I was forecasting the financial crisis? Go to YouTube. Why don’t you look at Peter Schiff in 2005 and 2006 and 2007? I’m the only person who was on CNBC and got it right…

I am wrong far less than every other guest who comes on this program, bar none. But you don’t give them a hassle for when they’re wrong. I generally get things right and all you’re saying is, “Wait a minute, you said gold would be here at a certain date and it’s not there.” You pressed me for a date and I said, “I don’t know. A couple years, two or three years.” And so what, it hasn’t happened yet. If you look at the broad picture, I’m the only one who knew that QE wouldn’t work. In fact, I predicted the Fed would do QE before it even did QE1. While everyone thought it was going to work, I knew that it wouldn’t. The structure of the economy has been weakened dramatically by the Fed. The problem is, you guys don’t know that. You’re so fooled by the phony economy before the financial crisis, and you’re just as fooled now. You have no idea what was wrong with the economy then, you don’t know what is wrong with it now. That’s why you think the Fed’s cure worked… When you get blindsided by this next crisis, hopefully you’ll apologize to me, because you didn’t do it last time.

A lot of people are making money on paper and they’re going to lose it all back. But again, we’re not sitting in cash. We’re invested in things, we’re invested in stocks, we’re invested in precious metals. I understand that cash is not going to work out, bonds are not going to work out. People are going to lose a lot of purchasing power. A lot of the jobs, in fact almost all of the jobs that are being created this year are being created for the elderly. People in their 60s and 70s have got jobs, even though they don’t want them. Because they’re losing so much purchasing power, because of all the inflation the Fed is creating to prop up the asset bubbles and to keep monetizing government debt. So yeah, if you’re holding cash, you’re holding nothing. You have to hold assets. But you have to recognize that if you’re going to be in the stock markets, there are much better markets in the world to be invested in than in the US. Because we have some real serious structural economic problems that we have yet to deal with because of the Fed, and because the Fed has delayed the day of reckoning so long, it’s going to be that much more painful to deal with these problems.”

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!