Peter Schiff’s 2014 Gold Prediction on GoldSeek Radio (Audio)

Chris Waltzek invited Peter Schiff onto GoldSeek.com Radio this last week to talk about the rebranding of Euro Pacific Precious Metals to SchiffGold. Peter explains the reasoning behind the brand change and why investors should avoid buying numismatic and collectible precious metals products. He then goes on to discuss his expectations for the US economy for the rest of 2014. He shares his 2014 predictions for the Federal Reserve’s monetary policy, as well as the price of physical gold. Enjoy the audio and full transcript below.

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Chris Waltzek: Thanks for choosing Goldseek.com as a trusted business and financial news source. Today’s special guest, Peter Schiff, from Schiffgold.com. Welcome, Peter Schiff.

Peter Schiff: Thanks for welcoming me on.

Chris Waltzek: Why don’t we start off with SchiffGold? Maybe you could tell listeners a bit more about the new company title and what the focus of your new venture is, please.

Peter Schiff: Well, it’s the same venture. It’s Euro Pacific Precious Metals. So nothing has changed except the name. So people can still get the same low prices on high-quality gold and silver products. I initially set up Euro Pacific Precious Metals because I have a brokerage firm, Euro Pacific Capital, and a lot of my clients are interested in precious metals.

I used to just refer them to find a reputable dealer, but too many of them were ending up finding un-reputable ones. I guess a lot of those companies would advertise, and then they would end up pushing people into these overpriced products. I heard a lot of horror stories.

So I decided just to set up my own company to make sure that people didn’t get ripped off, and they bought the right gold and silver products. If they’re really worried about inflation and the weak dollar, that they don’t get talked into becoming coin collectors and then overpaying for coins that don’t even have much in the way of collectible value anyway.

I started that a few years ago, and I decided to rebrand it to make it more of a clearly separate company than my brokerage firm, kind of have its identity unique to itself. As we continue to become a larger player in that market, hopefully we’ll continue to expand our market share. We have been doing that over the past few years and looking forward to continuing to take market share when the gold market starts to go higher.

Chris Waltzek: You’ve just been vocal in the area of, “Don’t waste money on numismatics. Focus your money and your capital on ounces.” I’d like to give you a chance just to tell people why this is so important for their portfolios.

Peter Schiff: Well, if you’re trying to buy just to have a store of value and a source of liquidity, you need to have coins that are easily recognizable, as far as their value, and are easily tradable and exchangeable. So if you’ve got an ounce of gold, everybody knows what an ounce of gold is worth. Or if they don’t, they will eventually. I mean, an ounce of gold is an ounce of gold. You don’t have to worry about what the grading of a coin is, how rare it may be. An ounce is an ounce. That’s the beauty of gold, that an ounce of gold is the same as every other ounce of gold.

So you’re just buying bullion products. If you have a one-ounce coin, you know what it’s worth, and you can sell it, or you can barter it. The person who’s buying it from you or accepting it will know what it’s worth. You want to have coins where the cost to buy and sell is as low as possible, the spread, the difference between what you buy for and what you sell at.

Now, when you get into numismatics and collectible coins, number one, you get into a situation where you have a big difference between the price you buy and the price you sell. You have a huge spread. So they don’t really lend themselves to liquidity or transactions. Of course, they’re all different. Each one has its unique value based on the coin, the date, the mint, the condition. It’s subjective. A lot of times, it needs to be evaluated. You need to have somebody look at it and then assign a rating to it.

A lot of people aren’t going to know what it’s worth, even if you know what it’s worth. Somebody else might not. If you have to explain to them and try to convince them that your coin is worth a certain amount of money, they might not want to transact with you.

So rare coins are for collectors. They’re for people who are trying to build a collection. They’re very knowledgeable, and they’re not buying just as an inflation hedge or to have some emergency funds in gold and silver, if they’re worried about a currency crisis. But unfortunately, too many people who are worried about these things get talked into buying these collector coins by salesman who are trying to make a lot of money.

Because the problem is the margins in gold, if you’re a legitimate gold dealer like me, you don’t make a lot of money marking up gold a percent or two, especially now, when not that many people are buying. So there’s even more pressure now for gold salesmen to try to push people into coins with 40, 50, 60, 100% markups because they’re not selling a lot of bullion, because the public’s interest is down.

The price is down, and these guys have rent to pay. They’ve got braces for their kids or whatever they’re spending money on. If they’re not selling as much bullion, they really have to pressure the few people that they have, the few clients they have, into these high-markup products, but it really isn’t the right choice for the investor.

I think what helps me out at SchiffGold is we don’t have any marketing expenses really. It’s mostly word of mouth. It’s mostly customers with repeat business or referrals. So we don’t have to pay for the marketing expense. So we can still charge these low commissions and cover our overhead and make a small profit, even with the volumes off as much as they are over the past year or two.

But hopefully when the situation comes around, I believe it will, we’ll be able to be more profitable as we do greater volume because more and more people will realize how important it is to buy gold and silver, and they’ll start buying.

Chris Waltzek: You know, there is an interesting flip side to this coin. The Australian Perth Mint, second-biggest producer, they announced this week that there’s an 89% increase in their sales. You know, the folks out here with money to spend, they recognize a bargain.

Peter Schiff: Yeah, although I don’t think [this is the case] in the United States. I think a lot of the coins or the bullion that the Perth Mint may be selling now [are not being sold to] retail investors in the United States. That is predominantly my client base at SchiffGold, is US citizens. I would say that last year, demand was probably off at least 40% from where we were a year ago.

So while you might be getting more buying coming out of India or China or South America, you’re not getting more buying out of the US. I think that’s going to come, but I think a lot of Americans are still fooled into believing that the dollar is sound. The dollar has actually risen recently against other fiat currencies, and that’s helped push gold prices below $1200. I think we’ve now come back above it, but we’re right around $1200.

I think that you’re going to need to see maybe $1400 or higher gold to get the retail interest to come back. I think it will. Again, right now, you still have a lot of false optimism that’s reflected in the stronger dollar. The optimism is centered on the US economy, its performance, and the Fed, and the belief that the Fed is going to stop the quantitative easing, unwind the balance sheet, raise interest rates, bring everything back to normal. All the problems have been solved, and we’re the only economy in the world that can say that.

Everybody else is still having problems, except America. Because America is alone in having solved these problems, we can now raise our interest rates and stop printing money, and everything is going to be great. All that is just a complete farce. Our problems haven’t been solved. They’ve actually been exacerbated. We have bigger problems than Japan. We have bigger problems than Europe. Not that Europe and Japan don’t have problems. They do. It’s just that ours are bigger and not smaller.

The Fed is not about to start raising rates, like people think. We’re getting ready for QE4. You know? Just like QE1 was followed by QE2, and QE2 was followed by QE3, QE3 is going to be followed by QE4. It doesn’t work. You know? Before they had QE3, they had Operation Twist. So maybe this is QE5, if you wanted to call that one a QE.

But the thing is every time the Fed juices the economy artificially, they always have to do it again. Because when you do that, you worsen the problems you’re trying to solve. So all of the problems are now worse because the Fed did QE3 than they would’ve been had they not done it. Because they’re worse, we’re headed for an even worse recession, unless we get QE4, which we will.

But the problem is, each time we do these QEs, all we do is kick the can down the road. Right? We postpone the pain until the next cycle. At some point, you reach the point where you can’t do it anymore. Now, you have no choice. I think that’s what’s going to happen after this next round. So I think this final round that’s coming is probably the last one because they’re going to crush the dollar, because the dollar is rallying because people think there’s no more QE.

When they realize there’s an even bigger one coming, and then they figure out that it’s a never-ending cycle, that if we can’t stop it after five years, if just the thought of raising rates sends us into recession and the Fed has put us right back on the QE life support, people will realize what they should have realized years ago, what I’ve been telling people for years, that there is no exit strategy, that it’s just QE infinity.

When they figure that out, then the bottom is going to drop out of the dollar, and people will be buying gold hand-over-fist. Who knows that the price will be by then, but it’s not going to be $1200. It’s going to be a lot higher.

Chris Waltzek: You know, you’re not thin-skinned. So you can handle the tough questions. I’m not going to sugarcoat this. We’ve got listeners who have been waiting three years for a market bottom. I know you look at the charts just like the rest of us here. Technically speaking, we could see further downside.

Peter Schiff: Anything could happen. I mean, it would be hard to say that gold can’t go down. It’s at $1200 now. Can it go to $1100? Can it go to $1000? I mean, sure. It could. I’m not going to say that you’re guaranteed not to buy the bottom. Otherwise, you could just go and buy options and make a bunch of money if this was a guaranteed floor. It’s not.

It doesn’t matter if you’re not buying options, if you’re not a leveraged speculator. If it goes to $1000 before it goes to $5000 or higher, how much difference does it make in the scheme of things? Well, I suppose it will make some difference if technically you could have timed it. You could have not bought at $1200, waited for $1000, gone all in at $1000. Then you’ll have even more gold when it hits $5000.

But what I tend to find is [the following]. Let’s say you don’t buy the $1200 because you’re waiting for $1000, and it never quite gets there. So you don’t buy it. Or maybe it does get to $1000, but then you lower your limit to $950 because you think, “Oh, this isn’t the bottom. It’s going even lower.” Then it might end up that while you’re trying to buy it cheaper, by the time you end up pulling the trigger, it could be $1300.

So there’s no guarantee, even if it goes below where it is, that you’re going to buy it there. The only way to guarantee that you buy it is just to go out and buy it. I think that, in the long run, if it ultimately goes to $5000, are you going to be mad that you bought it at $1200 and didn’t wait to $1000? I don’t think so. I think you’d be madder if it got to $5000, and you never bought it. Because then instead of going down to $1000, it went up to $1300 or $1400. You said, “Well, I’m going to buy a pullback. I’ll buy a pullback, back to $1300.” Then it goes to $1500 or $1600. Then you never get on board, and you just watch it go up.

So I think that the price is cheap. We encourage our clients to buy. Since most clients are still working and accumulating money, if you earn more money, and the next time you buy gold it’s cheaper, well then great.

Chris Waltzek: Everyone wants to know when the bottom is going to be there. So instead of focusing on something that we just can’t give folks, what I would like to do is hone in on this jobs report because really what we’re talking about here is a big game of Texas no-limits hold-em. All right. The Fed has the cards. What we’re trying to figure out – Are they bluffing? Now, you’re saying they’re bluffing. You’re saying that when the river card comes, there’s going to be nothing there and that we’ve got more QE. All we’ve got to do is hold on.

Peter Schiff: Oh, yeah. It just makes sense. Right? I mean, the reason that the past QEs were not followed by rate hikes, but more QEs, was because they didn’t work, because every time the Feds stopped the stimulus, the markets went down, and the Fed got nervous.

Remember, the recovery is built on the foundation of asset bubbles. It’s rising stock prices and rising real estate prices that are the foundation of the recovery, if you want to call it a recovery. The Feds have even admitted that that was their strategy. But the problem is, when you take the QE away, the stock market goes down. It’s already going down.

I mean, if you look at the market, particularly the Russell 2000 and many of the stocks in the index getting crushed so far in the year. This is with the Fed still doing QE. They’re still doing over $25 billion a month in QE. They haven’t even stopped yet.

So the market is already rolling over and dying before the Fed is finished taking away the punchbowl. There’s still punch left. But when they stop QE, as bad as the market has been and as bad as the real estate market has been in the past six months, and it’s been pretty bad, it’s going to get worse.

When the Fed starts to see these asset bubbles deflating and its hopes of recovery deflating along with it, we already know what they’re going to do. We have their playbook. When stocks and real estate go down and the economy slows, you do QE. I mean, they can’t cut rates because they’re already at zero. So the only thing they can do is QE.

This last jobs report that we got was just another weak jobs report that the media trumps up and says it’s strong, just because the number of jobs added started with a two. Right? We got 240,000, but big deal, because almost all those jobs were lower paying, temporary, or part-time jobs. The vast majority of them went to people who are 55 and older. Right? So younger people in their 20s, 30s, and 40s are still losing jobs.

The people who are taking jobs in their 50s and 60s, they’re taking the jobs that the 20-year-olds can’t get because they’ve got lots of experience, and they’re working for hardly any money. A lot of them are working part-time just to make ends meet. Meanwhile, the labor force participation rate in the jobs report we got last week just hit another 35, 36-year low. So more people left the workforce. Wages were flat, even though prices were rising. So real wages were falling.

The number of Americans who should be in the labor force, these are able-bodied men and women in their working years, the number of those people who are not working hit another all-time high. So that is not a strong jobs report. A strong jobs report doesn’t have a shrinking labor force. Right? It doesn’t have falling real wages.

If we really had a strong economy, people would be moving into the labor market to take advantage of all the new jobs that are being created. Wages would be rising, as people could quit their jobs, and they could take a good job.

One of the other reasons that we’re getting this big increase in the net number of jobs is because so many companies are still replacing their full-time workers with part-time workers in order to prepare for ObamaCare. So when you’re firing full-time workers and hiring part-time workers to replace them, you’re generally hiring more people than you’re firing because you have to make up for the lost hours.

So as you do that, as companies fire 50 full-time workers and hire 80 part-time workers, that counts as 30 new jobs, but they’re not netting it out or looking at what kind of jobs. [They’re not looking at] the quality of jobs that are being lost and the quality of jobs that are being gained. As long as there are more jobs created than destroyed, it’s a good number, even if we’re destroying high-paying jobs and replacing them with low-paying jobs. As long as the low-paying jobs created outnumber the high-paying jobs destroyed, they pretend it’s good news.

Chris Waltzek: Well, that’s a fantastic metric right there for a new index, for a whole new way of quantifying employment. What about the listeners scratching their heads, saying, “The unemployment rate did drop to a six-year low.”?

Peter Schiff: One of the reasons the unemployment rate went down is because the people who used to be unemployed left the labor force. So they’re not counted anymore. Then another reason is because people took part-time jobs because they couldn’t find full-time jobs. But here’s one thing that nobody is talking about, and this is probably one of the biggest reasons why the unemployment rate went down in 2014.

Until the end of 2013, Congress kept extending the extended unemployment benefits. So people were just taking these long vacations on unemployment, but they stopped extending the benefits at the end of last year. So millions of people, a couple million people at least, ran out of unemployment benefits this year. Therefore, they needed to take a job.

When they were still getting their unemployment benefits, if somebody offered them a minimum-wage job, they just would turn it down. I mean, they would either turn it down because they were holding out for something better or because it just didn’t make sense. They’d rather collect unemployment than collect a low paycheck and have to work.

When you have unemployment benefits, it creates an incentive for people not to take the low-paying jobs. I mean, they’ll take a good job if they can get it, but they’ll pass on a low-paying job. But once your unemployment benefits run out, now it’s either I get a low-paying job, or I starve, or I just get food stamps, and I have no other income coming in.

Now, you have a lot of people who are taking these $8, $9, $10 an hour jobs that they were turning down while they had an unemployment check. So it’s simply the changing the incentives. So these jobs were always available. People could have had these jobs last year. They just didn’t want them. So now, they’re taking them because their circumstances have changed, but it’s not because the economy is improving.

If anything, it shows that the economy is still so weak that people have to basically give up hope of a good job and settle for the job they got. That’s why if you look at the president’s approval ratings and look at congressional approval ratings, they’re making new record lows. So if the economy were really getting better, wouldn’t that show up in the polls? Wouldn’t the people express their optimism about their improving situation by being a little bit more confident in the leaders?

The fact that the popularity is plunging shows that people are not happy, because either they don’t have a job, their wages aren’t rising, but the cost of living is.

Chris Waltzek: Now, again, let’s return to the market analogy. Economists and market pundits and analysts, they cite the general equities markets as an indication maybe conditions aren’t as bad as we thought. The Dow are regularly making all-time, at least nominal, new highs. Are you discounting that as an inflation phenomenon?

Peter Schiff: Well, first of all, if you’re going to want to use the market, look at the broadest measure of the market, like indexes that have more stocks. Look at the Russell 2000. That index is at the same level it was in October of 2013. So over the past year, it has gone nowhere. It’s had zero appreciation, but that’s just the average.

Because if you take a look at a lot of the stocks that are in that index, lots of them are down 10%, 20% or more this year. The index, to me, looks like it’s breaking down. It’s already down about 8% from its peak back in July and August and April of this year. It’s about to break down.

I mean, I think that whole index is ready to go into a bear market. This index is more representative of the US economy because it doesn’t have the multinationals. It’s really domestically focused, US companies that derive all their earnings within the United States. That is the index that is the weakest. You would expect, with the dollar rising against other currencies, this index should be the strongest. It should be the big multinationals that are hurting, based on the fact that their profits that they earn abroad are going to translate into fewer dollars.

But no, you’re seeing the real weakness in the very index that is most indicative of the strength of the US economy. So while everybody is talking about the strong US economy, the Russell 2000 is telling you that the US economy is going into recession.

Chris Waltzek: It’s interesting you mention that because as we’re speaking here, it’s making fresh new lows not only on the week, but it’s threatening to break down to the lowest level of almost a year.

Peter Schiff: Yeah, look at the topping pattern, and we’re breaking. There is support around $1100, which we’ve really taken out. So I think the next level is around $1050, and then below that, maybe $1000. The high was above $1200. Once we break $1000, we’ll be officially in bear market territory. We can continue to drop, but here’s the thing.

See, this is why I don’t think the market is going to crash. I think we get a meaningful decline in the stock market. The Fed is coming to the rescue. I mean, Janet Yellen is going to come in, and she’s going to say, “More QE.” Then the market is going to rally, but the dollar is going to tank, and gold is going to take off much more than the stock market.

Chris Waltzek: And you do have to admit, I mean, she is the only Fed chair that I can recall that had anything constructive to say about the middle and working classes, generally concerned about the quality of jobs. We never heard anything like that.

Peter Schiff: That is the problem though, because Janet Yellen actually believes that the Fed can create jobs and prosperity if it just prints enough money. So when she starts to see the economy weakening or the markets weakening, and she sees it as a threat to the economy and employment, her instinct is we need to print more money. That is what makes her so dangerous, because money printing will only worsen the problems she’s trying to solve, but here is the self-perpetuating spiral.

When you believe that printing money solves your problems, and then you print money and the problems you’re trying to solve get bigger, what you do is print even more money. You can’t question. Janet Yellen is not going to question her entire life’s work. She is not going to admit that everything she’s believed for her entire life is wrong.

So she’s going to keep doing what she knows until it works. If it never works, she’ll never stop doing it. So it’s going to print, print, print, QE, QE, QE, until the dollar completely implodes. That’s the only thing that’s going to stop her, like a kid with a chemistry set, mixing all these chemicals together.

Chris Waltzek: Okay. Let’s talk though about the housing index, Philadelphia housing index. Rumors of its demise have circulated for over almost two years, but it continues to tread water. I want to know why you’re convinced that we might see lower lows here on a longer term base.

Peter Schiff: Look at all the numbers on existing home sales, construction. The housing market is rolling over. Look at the inventories. I’m reading all these articles now about how the builders are now having to throw in all kinds of incentives, free swimming pools, upgrades, stuff like that, just to try to move their merchandise. This is the same stuff that was happening at the peak of the last cycle.

We know that this most recent housing recovery was driven by speculators, not the same kind of speculators that drove the initial bubble. Those guys are out of the market. I mean, they’re broke. Homeownership rate among American individuals is at 20, 25-year lows. A lot of Americans who got burnt in the last housing bubble, they’re renting now.

This new crop of speculators was hedge funds and private equity funds who were enriched by QE, were taking some of their QE windfalls and buying up single-family homes to rent them with all cash. Well, those buyers are totally gone from the market now. They have bought all the houses they can handle. In fact, they’re getting ready to start selling.

The big question is: Sell to who? Because when the buyers want to sell, there are no buyers. The prices are still much too high for the average American to afford to buy a home. I don’t even think we’ve seen the lows. I think that even if the Fed does more QE, I think real estate prices are going down. But if they don’t do more QE, if they raise interest rates, real estate prices are going to crash below the 2009, 2010 lows.

What does that mean? That means big banks are going to fail. That means the budget is going to skyrocket as the losses mount. It’s going to mean that consumers are going to lose their home equity that they thought they were getting back. It means . . .

Chris Waltzek: The Fed is coming in with both guns blazing on QE.

Peter Schiff: We know what they’re going to do. It’s not like I got to figure it out. We already have their playbook. We know the plays they’re going to run. So many people out there now are of the false impression that everything is fine. We needed all the QE to get the economy going. Right? We needed the cheap money to stoke the housing market and the stock market, to get consumers spending. But now that we don’t need it anymore, we can take it away. So take away the QE, and it all implodes.

Chris Waltzek: Well, another aspect here that not many folks are commenting on is all this talk about the jobs number from the labor department. You know? Employment – that is a lagging or, at best, a coincidental indicator. So I mean, you would expect near a peak in the economy for jobs to have shown recovery.

Peter Schiff: Plus, a lot of the jobs are about psychology because you’ve got so many businesses, right, that believe all the hype about this recovery. They’ve been told, “The recovery is here. The recovery is here. It’s finally here.” So if you’re a businessman, you’re preparing for that recovery. You have seen that in the GDP numbers, where you had this big pickup in inventory. In fact, people think we’re going to have the best Christmas in many years. I think it’s going to be the worst Christmas that we’ve had.

But businesses are stockpiling inventories, and they’re holding on to their employees because they’re convinced that this recovery is coming. When it doesn’t happen, when the employers are disappointed by the promise of recovery that doesn’t materialize, then you’re going to see an avalanche of layoffs. Right?

Now, all of a sudden, “Well, you know what? I’ve been holding on to these workers. I guess I didn’t need them,” or, “I hired a few more people because I thought there was a recovery. You know what? It didn’t happen. So I don’t need these people.” So I think you’re going to see all this pent-up firing because people have been believing in something that isn’t going to happen, because they believe the news. They believe the forecasts of the economists. So they’ve been preparing for something that isn’t going to happen.

Chris Waltzek: So if that’s the case, what’s your big view for the rest of 2014 on the precious metals?

Peter Schiff: It takes a long time for people to figure out what I figure out quite quickly. So I don’t know. Will the market reverse before the end of the year? My guess would be that it would. Right? I don’t think that we’re going to make it through the end of 2014 without the Fed having to come out and either reversing the taper or just saying something that would indicate that QE is coming back.

This is a very weak year potentially for the stock market. It’s already starting out that way. How much is enough before Janet Yellen cries uncle on this and rescues the market? But we get 1000-point down bay in the Dow. That might do it.

Look, the Japanese are now maybe starting to wise up. The Japanese economy is now weaker than it’s been in years. That’s despite the fact that they printed all this money to base the yen. I actually think that the weak yen is hurting the Japanese economy, and I said that from the beginning.

I think some people are starting to wise up, that inflation is not the great thing that they thought it was. Because now, in addition to all the other economic problems that are now worse than they were before they started, now they have inflation on top of that. Now, the Japanese are complaining about how expensive everything is and how fast the prices are rising.

So maybe the yen has stopped falling. Maybe they’re going to stop printing yen. Right now, they’re trying to print a bunch of euros because they think that Europe needs more inflation. But if you look at all the opinion polls of all the people in Spain or Italy or France, it doesn’t matter what country it is, and you poll the public, and you say, “What’s your biggest problem,” it’s not healthcare. It’s not unemployment. It’s not the environment. It’s not immigration. It’s inflation. The people are complaining about inflation, the same as they are in America.

People all around the world are complaining that prices are going up. Meanwhile, the central bankers are complaining that they’re not going up fast enough. Right? They think the problem is that prices aren’t rising fast enough, when the public is already screaming that they’re rising too fast. So the central bankers are at odds with their own citizens because they want to create inflation, no matter how much pain it imposes on everybody else, because they somehow believe that the problem is that prices aren’t rising. Right? Although, nobody is saying the problem is that the prices aren’t going up fast enough.

Chris Waltzek: So they’re not worried about the goods and services that everyday folks have to deal with because, A, we have the debit food stamp cars for that and, B, their concern is in automobiles, homes, things where the large margins are that pads the bottom line of the financial institutions.

Peter Schiff: Yeah. I mean, what they’re really concerned about, and they hid in secret, is politicians in every country have promised well beyond the ability of the taxpayer to deliver. None of the politicians want to admit to the voters that they can’t have all the free stuff they’ve been promised. So rather than admitting that, they’re trying to inflate away all the obligations. That’s what they want. They want to wipe out their debts. They don’t want to do it honestly by default. They want to do it by inflation.

They also want to promise people higher wages. They want to pass minimum wage hikes, but they need to reduce the value of those wages, so that the people don’t lose their jobs. So it’s all about politics. It’s all about fooling the people, stealing their purchasing power, making them think they’re getting something when they’re getting nothing.

It’s all about keeping people in office and postponing the hard choices, because there are real problems in the world economy, but none of them are a function of a lack of inflation. They’re all a function of too much government, too much government spending, too much government regulating, too much government taxing. But as long as we rely on central banks, the problems will never be solved.

The central banks give the politicians cover to keep on regulating, to keep on taxing and spending and making the problems worse, while we think that what the central banks are doing are going to make the problems go away. Instead, they just numb us to the pain, while the problems get worse. Then the pain ultimately gets much worse.

Chris Waltzek: Why don’t you tell folks about SchiffGold, please?

Peter Schiff: Yeah. Look. If you want to get your gold, don’t worry about is the bottom at $1200. We know historically there is a lot of support around this $1200 level. The smart money is buying gold at $1200 or lower. This is not where you want to sell gold.

So don’t try to be a genius and figure out where the bottom is. There’s that expression about not looking a gift horse in the mouth, and that’s how I would look at any time you get a chance to buy gold around $1200, you just take the opportunity.

SchiffGold, that’s my company. I run it. It used to be Euro Pacific Precious Metals. It’s now SchiffGold. Schiffgold.com is the website. We’ve got among the lowest prices in the industry. We’re the most popular, the most liquid, widely known and accepted gold and silver and platinum products in the world. So if you buy through me, you’re going to get quality coins, and you’re going to get them just above the spot price.

You can never buy coins at spot because they have to manufacture them. There’s a cost to make the coin. So you’re always going to pay a premium. But when you buy them [from SchiffGold], the premium you’re going to pay is about as low as you’re going to find. That’s what you want. You want to maximize the amount of money that goes into gold and silver, not into the pocket of the person who sold you your gold and silver.

Chris Waltzek: You’re in good hands with SchiffGold. Peter Schiff, thank you for making time for us today.

Peter Schiff: Oh, any time.

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