Peter Schiff: We’ve Had a Sale on Gold for a Long Time; It’s About to End
The stock market has been rocked over the last week but gold has rallied. In his most recent podcast, Peter called gold “the real standout in the market.”
The price of gold finally woke up — or traders work up and notice how cheap gold is.”
As stocks tumbled precipitously last week, Peter said it may well be the beginning of the bear market. Of course, we saw similar drops in February. As it turns out, that was deemed a correction. But Peter said it was the beginning of a “stealth bear market.” He noted that more than 25% of the S&P 500 was already in bear territory before the most recent downturn.
You had generals making new highs, but the troops were in bear markets. Well, now those general, now they’re in the battle. They’re getting bloody too. Everything is going down. And so now I think the stealth bear market that started earlier in the year is now becoming a true bear market.”
Nevertheless, the mainstream still isn’t concerned. In fact, the consensus is this is merely another correction. Peter noted that while gold has rallied in recent days, it’s still relatively inexpensive. That indicates there isn’t a whole lot of fear out there.
To me, the fact that gold is still this cheap shows that there is tremendous complacency out there. Nobody is worried. Everybody says it is just a correction.”
But as Peter said in a recent appearance on Fox Business, we’re about to see a sequel to 2008 and like most sequels, it’s going to be bad. The levels of debt are even higher than they were leading up to the 2008 crash. The federal government just experienced the sixth largest increase in debt in the history of the US. Consumer debt is also at record levels. Corporations are leveraged up as well.
The only reason we’ve been able to survive with all this debt is because those interest rates have been kept so low. But now that those interest rates are rising it is exposing the problem that the debt is unserviceable.”
So, the recent move in gold is not a sign of panic.
Nobody is panicking. Believe me, by the time that happens, the price of gold is going to be much, much higher and it’s going to be moving up at a much faster clip.”
As Peter put it, we’ve had a sale on gold for a long time, but it’s about to come to an end.
If you were thinking about buying some gold, buy it.”
Peter also noted that while gold was rising about 3%, bitcoin was going the other direction. Listen to the entire podcast for his analysis on what’s going on with cryptocurrencies.
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