Peter Schiff: When Everything Blows, Gold Is Going Ballistic

Peter Schiff appeared on RT Boom Bust last week to talk about gold and silver. He said the time to buy is right now! Precious metals are going up in the long run and the long run may be here sooner than people think.

Bart Chilton started the interview off asking Peter about JP Morgan traders who recently pleaded guilty to manipulation in the precious metals markets. (Mike Maharrey talked to Chris Powell about this subject in a recent It’s Your Dime Interview.) Peter acknowledged that there was probably some manipulation in the gold and silver market, but that’s not why we’ve seen falling prices of late.

I think people are just completely clueless with respect to what’s actually going on in the world. They don’t understand the US economy; they don’t understand the Fed. But they’re about to get a rude awakening and the smart money is buying gold, whether it’s being manipulated or not in the short run, gold and silver are both going way up in the long run. And the long run may be here much sooner than people think.”

As Maharrey covered in last week’s Friday Gold Wrap podcast, gold was down significantly early last week after the Fed indicated it would hold steady on its rate increase course. But the yellow metal rebounded later in the week. So, are we looking at a significant upside in gold?

Peter noted that both the stock market and bond market look pretty week.

You want to talk about manipulation? It’s the central banks that have been manipulating bond prices and interest rates, far more than traders were able to manipulate gold and silver. But I think the air is coming out of that bubble. And as this US stock market implodes, as more and more people realize that a massive recession that is even bigger than what we now call the Great Recession of 2008 is actually around the corner — and this credit bubble is far bigger than the one that popped in 2008, that one produced a financial crisis. This one is going to produce something much worse — So as people actually figure this out, they’re going to be buying gold and they’re going to be buying it in a big way.”

Chilton asked Peter where he thought gold would be in a year. Peter said he couldn’t predict an exact price.

I think it’s going to be higher. It could be a lot higher. I mean, it could be $1,000 higher. I don’t know. It all depends on how this thing blows up. I think it’s going to blow up in a big way. It’s a huge credit bubble. We’re going to see waves of foreclosures and insolvencies and bankruptcies.”

Peter noted that it’s not just companies. Individuals are burdened by debt, as well as municipalities and state governments  — not to mention the federal government.

All of this stuff is coming to a head and it all depends on when it blows And when it does, gold’s going ballistic.”

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