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

Peter Schiff: If You Understood What This Means, You Would Be Buying Gold as Fast as You Can

  by    0   0

Gold has risen to six-year highs in recent weeks as the Federal Reserve has pivoted back toward an easy-money monetary policy. Markets widely anticipate a Federal Reserve interest rate cut this week and the economy appears to be slowing.

Peter Schiff recently appeared on RT Boom Bust to explain why he believes this is the beginning of a much bigger long-term rise in the price of gold. And it’s not just because the Fed is cutting rates.

In fact, they are going to cut rates next week and this is going to be the first step on the road back to zero. And the Fed is also going to return to quantitative easing. But we just found out that Donald Trump is cutting a deal with a Democrats to basically throw out any progress Republicans made back in 2011, thanks to efforts of the Tea Party, to at least try to rein in the increase in government spending. So, they’re throwing caution to the wind. We are going to see deficits going through the roof over the next several years, and that’s even without the recession, which I believe is coming and which is going to make them much, much worse.”

Consider that in the midst of what is supposed to be a strong economy, we’re already seeing record-setting deficits. As Peter pointed out, bigger deficits mean more money-printing and that means more inflation.

All of this is very bullish for gold … If you understood what all of this means, you would be buying gold as fast as you can.”

The host asked Peter where he sees the price going in the near future. He said he doesn’t see much resistance in the price of gold until you get up around $1,800 or $1,900 – the vicinity of the 2011 highs. Peter pointed out that gold came off that peak just as Congress was taking some steps to rein in deficit spending.

Well, now that we’ve eliminated those steps, it makes sense that gold would break out.”

Peter said given the conditions, he doesn’t think we will even see a whole lot of resistance at $1,900 and that he thinks the price of gold will shoot past those 2011 highs.

Peter was also asked about Fed board nominee Judy Shelton’s support for the gold standard while simultaneously calling for a rate cut. He called it hypocritical.

If anybody actually believes in a gold standard, then they believe that the market, not the Fed, should be setting rates. And if the Fed were to allow the market to set rates, rates would be much higher. The only reason rates are as low as they are is because the market is anticipating how the Fed is going to react in the next recession, which is quite imminent. So, I think it’s wrong. If Judy Shelton really wants to return to a gold standard, then she wants higher interest rates, because higher interest rates is what we would get if we went back on a gold standard.”

Peter said that would be a good thing because that’s what the economy needs.

We don’t have enough savings. We don’t have enough capital investment. We have too much borrowing on all levels. And that’s because the Fed has held interest rates artificially low.  So, if the Fed can no longer do that, then rates are going to rise, at least in the short run.”

Peter said that in the long run, we would get lower interest rates because we would have sounder money, less inflation and higher savings.

But the government has been able to manipulate interest rates artificially lower to boost the GDP, to prop up the stock market and other asset bubbles. But all of that is going to blow up and interest rates are going to go sky-high.”

WhyBuyGoldNowBanner.070815.590

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

Artificially Low Interest Rates? So what?

The Federal Reserve has held interest rates artificially low for decades. Even after pushing rates to zero in the wake of the 2008 financial crisis, “normalization” only managed to raise rates to 2.5% — hardly “normal.”  The central bank began cutting rates in 2019, even before the coronavirus pandemic. But what difference does it make? […]

READ MORE →

Peter Schiff: What’s Going on With the Price of Gold?

Gold has been rangebound of late, bouncing between $1,750 and $1,800 an ounce for several months. Given the inflationary environment, one would expect gold to be soaring. So, what’s going on with the yellow metal? And when will the price of gold go up? Peter Schiff tackled this question during a recent Q&A session on […]

READ MORE →

Peter Schiff: There Is Only One Type of Inflation

When talking heads and politicians talk about inflation, they tend to make distinctions between “food inflation,” or “energy inflation,” or “wage inflation.” In this clip from his podcast, Peter Schiff explains that this isn’t the right way to look at inflation. In fact, there’s only one type of inflation. And the Federal Reserve is the […]

READ MORE →

What’s the Difference Between Naturally and Artificially Low Interest Rates?

We know that the Federal Reserve pushes interest rates artificially low by manipulating the federal funds rate (the target interest rate that commercial banks borrow and lend their excess reserves to each other) and using monetary policy maneuvers such as quantitative easing. But could we have low interest rates without Fed intervention? In this clip, […]

READ MORE →

Peter Schiff: The Debt Ceiling Is Really a Debt Floor

We have a temporary truce in the debt ceiling fight. On Thursday, President Biden signed a bill increasing the federal debt limit by $480 billion. But this isn’t an end to the debt ceiling fight. Congress just kicked the can down the road. The increase is only expected to keep the US government solvent until […]

READ MORE →

Comments are closed.

Call Now