SchiffGold’s It’s Your Dime features “straight talk” interviews with movers and shakers in the world of precious metals, investing and economics.
In this episode, host Mike Maharrey talks with SchiffGold managing director Matt Malleo. They discuss a wide range of topics including the current state of the precious metals market and what potentially lies ahead. They also discuss asset bubbles, the national debt, the potential upside for silver, the future of the dollar, and how gold and silver have historically preserved wealth. Finally, Matt provides you with a quick precious metals Investment 101 lesson.
At the moment we are at the turning point towards a gold bull market. The macroeconomic and geopolitical factors support this tendency. One of the things we notice across the bull markets of the past 50 years is that, even in its weakest period of increase, gold gained more than 70%. This record supports our optimism for future developments. From our point of view, stronger inflation tendencies or the abandoning of the rate-hike cycle in the US could trigger an increase in momentum of the gold price. We regard these scenarios as realistic.”
As Peter Schiff said during his recent speech at the Cambridge House International Mining Investment Conference, “Everything feels good until the party’s over. Nobody wants to question it. Nobody wants to rain on the parade.”
But every once in a while, you might overhear a more sober party-goer suggest, “Hey, isn’t it getting close to time to go home?
Border Capital CEO Michael Howell is that guy. During an interview on CNBC’s Squawk Box, he said investors should sell stocks because a correction is coming. He’s raised a rare voice of concern among a mainstream still caught up in party mode.
Warren Buffett has never been a fan of gold and has publicly disparaged the yellow metal on more than one occasion. During his annual shareholders meeting earlier this month, he compared investing in gold and stocks, arguing that over the long term gold is an “unproductive asset” that “doesn’t produce anything.” So, why have it, unless you just want something to “fondle.”
But is Buffett really making an accurate comparison? Or is this a proverbial apples and oranges scenario?
The mainstream keeps telling us the economy is great. Unemployment is low. The stock market is high. There’s nothing to worry about. So, when we do express concern and argue that maybe things aren’t so great, the mainstream writes us off as contrarians or old-fashioned “gold bugs.”
Of course, there has been a certain negativity toward precious metals investing for years. as SRSrocco put it, “There’s a very interesting notion put forth by many commenters that the precious metals analysts and dealers are the frauds and charlatans, not Wall Street or the central banks. I imagine they believe this because gold and silver prices haven’t performed as forecasted or compared to the insanely inflated stock, real estate, and crypto markets.”
But no matter what they might think, there are important reasons to buy gold – especially now while everything is supposedly great.
Net inflows of gold into gold-backed ETFs hit the highest level in more than a year last month.
Global gold-backed ETF holdings collectively added 72.2 tons of the yellow metal in April, according to data released by the World Gold Council. Overall, gold-backed ETFs increased their holdings to 2,481 tons worth an estimated $104.6 billion.
Ron Paul recently appeared on CNBC Futures Now and said the stock market is destined to go down – perhaps as much as 50%.
Because of the enormous amount of debt and monetary manipulation foisted upon the economy by the government and the Federal Reserve.