Peter Schiff: Gold Soars Before Inflation Resumes

On Friday’s episode, Peter tackles an exciting week for gold, in which the metal saw an intraday high of $2,583. This price action comes less than a week before the Fed is expected to announce rate cuts that would resume the inflationary policy of the last two decades. Peter also hits briefly on the anniversary of 9/11, and he comments more formally on the Trump-Harris debate from last Tuesday (check out his initial reaction here).

Peter recaps the week, noting that gold still has a lot of upside in 2024:

“Gold hit a new record high pretty much every day this week. It closed at a new closing high for a day, for a week. Gold closed, I believe the settlement price was 2,578. … The high of the day, intraday that I saw, was 2,583. Gold is now up 25% on the year. That’s a big year. And the year is not even over yet. Now, let’s contrast that to what’s going on in the stock market because a lot of people are talking about stock markets being strong.”

Gold indexes also enjoyed a lift last week, with GDX and GDXJ up 9.3% and 13.6%, respectively, on the week. Peter thinks they’re both still at bargain prices:

“But the indexes are still extremely cheap. And I still think that people should be buying these stocks as fast as they can come Monday morning, regardless of where they are. Obviously, you need to be a speculator. There’s risk in these stocks. But as far as I’m concerned, they may as well be giving them away in Cracker Jack boxes. That’s how cheap they are. And gold’s still going up. Silver, almost back to $31 above $30 today. Up percentage-wise, that was a bigger move than gold.”

With inflation supposedly tamed by modest rate hikes, the Fed is signaling a celebratory pivot back to cheap credit, which is a huge mistake:

“Cutting rates actually is the catalyst for a surge in inflation. So, the very victory celebration is what causes defeat, although they lost anyway, but there’s the irony of the whole thing. And that is what the markets don’t understand, is that we’re going to get this huge pop in inflation and we’re going to get a recession, right? Now, the markets are thinking, ‘We’re not even going to have a recession, right? We’re going to have a soft landing, and inflation is coming back down to 2%.’”

Last week also saw the 23rd anniversary of 9/11. The initial attack was devastating enough, but as Peter explains, the permanent damage from 9/11 was the political shift to a surveillance and warfare state that threatens to deprive Americans of their liberties:

“So, the real threat wasn’t coming from foreign terrorists, but our own legislature, our own Congress, our senators, our representatives, and the president, right? They took advantage of what happened. And that’s, you know, the reason and I’ll get into a little politics later. But that’s why I’m so fearful, certainly of a Harris administration when this economic collapse happens because they will take advantage of that to try to bury what’s left of capitalism.”

Meanwhile, the national debt keeps setting new records:

“The US government ran a budget deficit in August, one month, of 380.1 billion dollars. That’s one month. That used to be an entire year. In fact, I remember when 380 billion was a bad deficit for a whole year. That was a big number to run 380 billion in one year. We just did it in one month. This is the biggest deficit we’ve ever run as a nation in the month of August. That includes 2020 during the COVID pandemic.”

Peter also gives his thoughts on the moderation of the presidential debate last week. ABC disgraced itself by neglecting to confront either candidate on entitlements and inflation:

“ABC didn’t ask a single question on inflation, or price controls, or any of that, but nothing on inflation, nothing on the deficits, nothing on the interest cost that’s skyrocketing to service the deficits, nothing about entitlements. I mentioned that now for the first time under any administration, Social Security is running a deficit. They’re collecting $100 billion a year less than they pay out. So where’s the question about the insolvency of Social Security?”

One thing’s certain: Kamalanomics and inflationary policy are not the way forward for America.