Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Peter Schiff: Silver Has a Long Way to Go

  by    0   3

On July 21,  we reported that silver had powered above $20 an ounce and was at a six-year high. The very next day, the white metal blasted through $21 an ounce and was approaching $22. So what does silver’s breakout really mean? Peter Schiff talked about it in his podcast.

Peter opened up the show talking about soaring stocks. NASDAQ in particular is booming. But most of the money is going into a handful of stocks that have benefited from coronavirus — as Peter called them, the stay at home stocks. But Peter said these companies are still going to be affected by COVID-19.

Because so many of their customers are about to be broke. Just because people have access to your products doesn’t mean they’re going to be able to buy your products. Just because they can buy your products from home doesn’t mean they’re going to do it if they don’t have any money.”

Peter said what investors should be doing is looking at gold, silver, gold stocks, and silver stocks.

Those are the real COVID plays because the way the government is trying to prop everything up and bail everybody out is by creating inflation. And the best hedge against inflation is not an overpriced social media company but extremely undervalued mining companies that are mining the money that the Federal Reserve can’t print, and the money that is likely to replace the US dollar in the global financial system as the primary reserve asset for central banks — and that is gold.”

The real action over the last few days has been in the gold and silver markets – particularly in silver. Peter has talked about the potential for silver for some time. But though silver has made a big move of late, Peter said this is not the big move that he’s been forecasting.

What I think is going to happen is going to be much bigger than today’s 7% gain at the peak.”

The white metal ended up closing up about $1.30 on July 21, and it eclipsed the $21 per ounce level. But keep in mind that silver was close to $50 in 2011.

That is the next stop. Believe it or not, that’s where the real resistance is and that’s where we’re going.”

But Peter said it won’t stop there. Once silver breaks through $50, he said it will go “much, much higher.”

Silver actually has a double-top around $50. It first got to that level in 1980 and then again in 2011.

Fifty-dollars looms very large. But there’s an old saying about these double-tops. I think they’re made to be broken, and silver is going to break this double-top. And the fact that it’s been there for so long means that when it does break — look out!”

Consider how far silver dropped. You could buy silver for $11 or $12 in March. Peter said he bought some silver coins himself.

Once 50 goes from being resistance to being support, it’s going to be massive support. And it is going to provide kind of like a launching pad for a massive move up in the price of silver.”

The silver-gold ratio has been historically high for months. It was well over 100-1 back in March. It’s dropped to about 84-1, but that is still high by historical standards, meaning silver remains undervalued compared to gold. Peter said he thinks we’re starting to unwind that spread and the unwinding of this silver-gold trade is important.

Once they’re finished unwinding, that bit of selling pressure on gold is going to be gone, but all the selling pressure on silver is going to be gone because no one’s shorting it anymore. They’re just going to be buying it. And silver has a long way to go.”

Peter said silver’s breakout is a good sign for gold too.

The fact that silver was never confirming the gold bull market, some people saw that as a non-confirmation, and so another reason not to believe in the gold bull market because silver wasn’t participating. Well, now it is. So, you can’t say that anymore.”

So what is the rally in silver telling us? It’s a prelude to the dollar collapse Peter has been predicting for a long time. And he said we don’t have a lot of time.

The bottom is going to drop out of the dollar any day. Gold could go through the roof any day. And so, this is really a race – a race to beat the clock and get people out of the dollar.”

So, what does the silver and gold rally mean? Peter called it a canary in the coal mine.

And the canary is dropping dead.”

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Peter Schiff: Biden Takes the Helm of a Sinking Ship

Joe Biden was inaugurated on Jan. 20, becoming the 46th president of the United States. And as Peter Schiff put it in his podcast, he took the helm of a sinking ship.

READ MORE →

Peter Schiff: Economic “Rescue” Plan Like Throwing a Drowning Man an Anchor

President-elect Joe Biden unveiled his massive stimulus plan last week touted as the “American Rescue Plan.” In his podcast, Peter Schiff said it was more like throwing a drowning man an anchor.

READ MORE →

Peter Schiff: Commodity Boom Isn’t About Economic Growth; It’s About Inflation

Commodities are booming. A lot of people seem to think this is a sign of pending economic growth. But in his podcast, Peter Schiff said it’s really a sign of inflation. Most of the investment world continues to focus on the stock market and they’re not really paying attention to what going on in the […]

READ MORE →

Peter Schiff: Congress Is the Real Threat, Not Protests

Somewhat lost in the chaos of the DC protests was the fact that Democrats won both Georgia Senate runoff races. That effectively gives the Democrats control of both houses of Congress. In his podcast, Peter Schiff made the case that Congress is the real threat to America, not the protesters who broke into the Capitol […]

READ MORE →

Peter Schiff: Are Global Financial Markets Beginning to Decouple?

The first trading day of 2021 was, as Peter Schiff put it, “atypical.” In his first podcast of 2021, Peter analyzed the unusual day on Wall Street and explored a significant question: are we beginning to see the decoupling in the global financial markets that he’s been predicting for years?

READ MORE →

Comments are closed.

Call Now