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Peter Schiff: Why Would Any Country Store Its Gold in the US? (Video)

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Last week, we reported that Poland added 100 tons of gold to its reserves through the first half of the year and that it plans to move at least half of that hoard out of London to National Bank of Poland vaults in Warsaw. Although officials haven’t said so publicly, Poland’s move to repatriate part of its gold holdings indicates that there is perceived risk in keeping the metal stored in London, exacerbated by England’s confiscation of Venezuelan gold.

Peter Schiff recently appeared on RT with Rick Sanchez to talk about the subject. And he said the US is an even more dangerous place for other countries to store gold than Great Britain.

Peter noted that the United Kingdom actually sold off a significant portion of its gold holdings when the price was under $300 per ounce – and the appreciation of gold in pounds since then has been even greater than it has in dollars.

So, you know, if Britain gets desperate and they don’t have any of their own gold, they may try to seize some of the gold that they do have. It makes sense that the Poles would want to get their gold back just in case.”

Peter said one of the good things about gold is that there isn’t any counterparty risk.

It’s not somebody else’s liability. But what risk you take is storing it with a third party, because what if they don’t give it to you when you need it? So, I think it’s that foreign central banks are wanting more gold because they’re preparing for a post-dollar world where gold is going to be the primary reserve asset backing up currencies, not dollars. But not only do foreign governments want more gold, but they want that gold in their own possession. They want to make sure they have it when they need it.”

Sanchez brought up Britain’s decision to keep Venezuela’s gold. He asked, “Should any country have the right to tell another country, ‘You put your gold here, but we’re just going to keep it because we don’t like your politics?'”

Peter said that’s what they call sovereign immunity. But there is a risk with any country taking this kind of position.

You run the risk of people not wanting to store their gold with you if you’re going to come up with excuses not to give it back.”

Peter went on to say he doesn’t understand why any country would store its gold in the United States.

I think that’s one of the most dangerous places to keep it. I think maybe it’s safer in the UK than the US. But a lot of countries have their gold here with us and they should really be trying to get it back.”

Peter said there is an extreme amount of political risk in the US.

I do think that we’re heading for a major currency crisis. I think the dollar is going to collapse, and so that’s going to take down the US economy. Our entire way of life has been built on the privilege of issuing the world’s reserve currency. And when the dollar loses that status, all hell is going to break loose here in the US.”

Peter said you never know what might happen when that occurs. The US could take desperate measures. And there is the possibility that socialists could be in control of the US government at that point.

They could declare some kind of national emergency. The US has a history of confiscating gold in the 1930s. We defaulted on our obligations to pay gold. You know, once upon a time, we told the world that if you had $35 we would give you an ounce of gold. That was an IOU, like a commitment, like a bond. And then we defaulted. So, we’ve done desperate things in the past when our backs were against the wall. So, if we have real economic chaos here, the US just might nationalize or seize any gold that it has custody of. So, I wouldn’t want to take that chance if I was a foreign government.”

This discussion highlights the importance of secure storage for your gold and silver. SchiffGold offers both safe and vault storage options for its customers. For details, call 1-888-GOLD-160 and talk with a SchiffGold precious metals specialist.

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