Peter Schiff: Gold Is a Mispriced Asset and It’s Time to Buy (Video)
Despite all of the warning signs, the mainstream is still convinced the “economic boom” will continue and the Fed will keep pushing interest rates up. As a result, the price of gold has stayed relatively low. But as Peter pointed out in his most recent Gold Videocast, their complacency is ill-advised, and gold is a mispriced asset. Now is the time to buy.
Investors seemed to breathe a sigh of relief after the midterm elections. Even though the Republicans lost the House and people believe we may see some political gridlock, there seems to be a lot of optimism that the economic boom will continue for the next two years. The problem is – as Peter pointed out – they are confusing a boom with a bubble.
The air is obviously already coming out of this bubble but the problem is so few people actually understand that we’re in a bubble, they don’t understand that it’s popped and they don’t even hear the sound of the air coming out.”
And Peter doesn’t believe a divided Congress will necessarily mean gridlock either – especially as the economy slows down. He thinks Trump will be eager to reach across the aisle and work with the Democrats to pass the next round of economic stimulus. That will mean a lot more government spending and even bigger deficits. This may not be great news for the economy, but it is good news for gold and silver investors.
If we’re going to have even bigger deficits and an even more inflationary stimulus with a Democratic Congress, that means the move in gold and silver is going to be even larger.”
Federal Reserve rate hikes have kept the price of gold low. But people haven’t connected the dots between rate hikes we’re seeing today and the rate cuts that are coming tomorrow.
All of these hikes have simply pricked the mother of all bubbles.”
In fact, the bubbles now are even bigger than they were in 2008. Interest rates have been kept lower for longer. That means there is even more distortion in the markets.
Of course, the Fed will rush in and try to inflate the bubble again. Rates will go back to zero. We’ll probably see more quantitative easing.
This is not going to be the ‘third time’s the charm’ when it comes to the Fed and their monetary magic. It is, as I’ve been saying, three strikes you’re out. But if you want to avoid going down, you need to protect yourself. You need to preserve your wealth. You need to buy gold and silver, and you need to buy it now.”
As Peter put it, gold is a mispriced asset right now. It’s effectively on sale.
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