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Mike Finger

Michael Finger

Mike started his marketing career at Euro Pacific Capital and has been involved with SchiffGold from its founding in early 2010. A student of philosophy, politics, and economics from an early age, Mike is driven by SchiffGold's mission of helping people diversify out of fiat money and its derivatives.

Articles by Michael Finger

UBS Says It’s Time to ‘Warm Up’ to Gold

September 25, 2015

September 25, 2015  by Mike Finger  0   0

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For months, Peter Schiff has argued that the Federal Reserve cannot and will not raise the interest rate.
Most recently, Peter told CNBC Asia the Fed is pulling a “long con” on the global markets when it comes to its monetary policy. The Fed wants people to believe that a rate hike is coming, but Peter argues that we will actually see a fourth round of quantitative easing.
Now we’re beginning to hear echoes of Peter’s position on interest rate hikes from other global analysts.

In a recent note to investors, UBS advised the time has come to “warm up” to gold, arguing that interest rates won’t rise to the level most have predicted.

UBS models suggest that US equilibrium real rates may settle lower versus previous cycles and versus current market expectations.”

Mineweb reported the news emphasizing interest rates will likely remain far lower than the mainstream pundits have anticipated.

UBS sets the scene of gold’s decline, noting ‘The prospect of Fed normalising policy has been the main driver for gold’s correction over the past few years.’ But UBS takes the position that the market has gone too far, punishing gold ahead of presumed (and now delayed) rate hikes. In this, UBS sees a new – and lower – world order of interest rates coming to bear less than might be expected, which could be seen as good for gold.

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Peter Schiff at Jackson Hole Summit: The Monetary Roach Motel (Video)

September 24, 2015

September 24, 2015  by Mike Finger  0   0

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In August, Peter Schiff was a guest speaker at The Jackson Hole Summit, a gathering of free-market activists warning of the dangers of overreaching central banks and irresponsible monetary policies. The Summit coincided with the official central bank conference held every year in Wyoming.
Peter’s speech was titled “Monetary Roach Motel: There Is No Exit from the Fed’s Stimulus”, and he reprises his consistent message of how the Federal Reserve created the economic problems it is pretending to solve. Peter also spent some time exposing Janet Yellen’s terrible track record as an economic forecaster.
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Highlights from the speech:
“I’ve been saying for years that the Fed has been bluffing about raising interest rates, because the Fed wants to pretend that its policies were a success. If it raises interest rates, it will prove that they were a failure… When the financial crisis took just about everybody by surprise, the conventional wisdom was, ‘Okay, the US economy has been crippled by this crisis, and we need the Fed to save us, to provide us with some kind of crutches that we would use temporarily until we got over the pain.’ Of course, that puts aside the fact that it was the Fed that crippled us in the first place, but everybody thought that the Fed was going to save us.

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Irwin Schiff’s Life Sentence and America’s End Game (Video)

September 24, 2015

September 24, 2015  by Mike Finger  0   0

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Alex Jones spoke with Peter Schiff for an entire hour on InfoWars yesterday. They had a wide-ranging discussion, including the tragic plight of Peter’s father Irwin, a political prisoner held in poor conditions. They also talked about the Federal Reserve’s monetary policy, the next round of quantitative easing, the Pope’s economic message and visit to America, and the complicated refugee problems in the Middle East.

I think this thing started to unravel in 2008… This is the unwinding of the massive bubble that began in 1971, when we went of the gold standard… Guys like my dad were criticizing it back in the ‘70s. He saw it coming from a mile away… If you go back and read my dad’s book ‘The Biggest Con’, which came out in 1973, 1974… It’s amazing how far into the future my father saw, and how much of what he wrote in that book has happened since he wrote it…”

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Highlights from the interview:
“It was so hard just to see him there all by himself, withering away. Maybe 140 pounds. He’s skin and bones. He’s not eating. He’s all by himself. He’s starting to lose his mental capacity, probably dementia. Meanwhile, everybody I’ve talked to – the people in the prison want him out. But he’s still not out. The bureaucracy – the wheels turn so slowly we can’t even get a dying man out of prison.

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Whole World Has Been Fooled by the Fed’s Con (Video)

September 24, 2015

September 24, 2015  by Mike Finger  0   0

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CNBC Asia spoke with Peter Schiff last night. The anchors acted surprised when Peter suggested the Federal Reserve is pulling a “long con” on the global markets when it comes to its monetary policy. The Fed wants people to believe that a rate hike is coming, but Peter argues that a fourth round of quantitative easing is what we will actually see. How should investors prepare? Buy non-dollar investments and hard assets, like gold and silver.

I’ve been positioning myself in non-dollar investments… I think gold looks like it has probably put in a bottom. We’ll have to see… I do expect a spectacular reversal when people figure this out. It took a while for the people who were buying subprime mortgages to realize that what they were buying was worthless. But eventually the bottom dropped out of the market, and I expect the same thing to happen again when people figure out the truth behind the US economy and what the Federal Reserve is actually going to do – not what they’re pretending they’re going to do.”

[embedded content]

Follow along with this transcription of Peter’s responses:
“The US economy is slowing considerably, and earnings have been under pressure. My guess is they will continue to be under pressure. The real story, of course, is the Federal Reserve.

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Want Stable Purchasing Power? Buy Gold and Silver

September 24, 2015

September 24, 2015  by Mike Finger  0   0

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Gold represents stability.
Historically, gold holds its value. It also maintains a relatively constant level of purchasing power, especially when compared to the US dollar.
In 1976, University of California Professor Roy Jastram completed a long-term analysis of gold’s purchasing power stretching all the way back to 1560 and published his finding in The Golden Constant: The English and American Experience, 1560-1976. He found gold’s purchasing power remained remarkably stable over that period, as reported by the London Telegraph.

Professor Jastram found that, over a period of more than 400 years, gold had proved an effective store of value and an ounce would usually buy a good, but not luxurious, outfit of clothes.”

Jill Leyland updated the book in 2009. Of course, there have been peaks and valleys, most pronounced after the US went off the gold standard. We saw two significant spikes in purchasing power since 1971, along with some dips. But overall, the precious metal has maintained a remarkably stable level of purchasing power over time.
This becomes particularly evident when placed in context with the purchasing power of the US dollar. The greenback has done nothing but drop since the creation of the Federal Reserve.
Since 1913, the purchasing power of $1 has dropped to less than 5 cents, a nearly 96% decrease.

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Silver Is Significantly Undervalued – A Terrific Buy (Video)

September 23, 2015

September 23, 2015  by Mike Finger  0   0

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Kitco News turned to Todd “Bubba” Horwitz for a technical trader’s opinion on buying gold and silver right now (scroll down for full interview).

SchiffGold avoids technical analysis of the metals markets, because stock and options traders are generally at odds with our long-term strategy of physical precious metals bullion. However, most technical traders also buy into the economic narrative promoted by the Federal Reserve. Horwitz does not. He appears to agree fully with Peter Schiff that the Fed won’t raise rates anytime soon:

I have never expected a rate hike for 2015. I think we’ll be lucky now if we see one in 2016. I am expecting a QE4, though, because I believe the Fed has lost their way. I believe they have no clue of what to do. I think the best news for them was China and Greece news that allowed them to continue to push the can down the road and ignore the real problem. They need to raise rates, but I don’t think they’re going to do so.”

While Horwitz believes that the United States dollars currently remains a safe haven asset for investors worried about both the domestic and global economies, he also thinks now is a terrific buying opportunity for precious metals – especially silver.

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Drop in Gold Output Expected as Mining Companies Lose Money

September 23, 2015

September 23, 2015  by Mike Finger  0   0

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With many mining companies in the red, analysts expect gold production to drop for the first time since 2008.
According to a Bloomberg report, the anticipated drop in production follows a global surge. Gold output jumped 24% in a decade to a record 3,114 metric tons in 2014, according to data from industry researcher GFMS.

About 10 percent of the world’s mines are losing money, according to London-based researcher Metals Focus Ltd. Output will start declining as soon as next year, said the chief executive officers at Randgold Resources Ltd. and Polymetal International Plc. Gold Fields Ltd.’s CEO expects a ‘big dip’ from about 2018, while HSBC Holdings Plc predicted the drop will be 25 tons this year.”

Approximately 65% of mined and recycled bullion is used in jewelry and industrial items. Investors buy the rest.
According to James Sutton, a portfolio manager at JPMorgan Chase & Co.’s $2 billion Natural Resources Fund, on average, the industry needs about $1,200 per ounce to break even, taking into account all costs.
Profit margins for the 15 largest producers have dropped as much as 45% since 2011, while their debt has doubled to about $34.7 billion, according to an analysis by Bloomberg Intelligence.
Barrick Gold Corp. ranks as the world’s largest gold producer.

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Russian Central Bank Continues Gobbling Up Gold

September 23, 2015

September 23, 2015  by Mike Finger  0   0

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The the Bank of Russia bought 1 million ounces of gold in August alone. That boosted the country’s gold reserves to 42.4 million ounces as of Sept. 1, according to an announcement by the bank last Friday. The value of the central bank’s holdings rose to $47.68 billion from $44.96 billion a month earlier.
The Russian central bank’s gold purchases in August topped the 30.5 tons it purchased in March, and was the highest amount in six months.

Russia ranks as the seventh largest holder of gold reserves in the world behind the US, Germany, the IMF, Italy, France and China. Russia has more than tripled its reserves since 2005
In June, the Bank of Russia chairwoman announced plans to boost its depleted international reserves to $500 billion to hedge the crisis-struck economy against capital flight and new shocks, according to the Wall Street Journal.

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.

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CNBC’s Scott Nations vs Peter Schiff: Round 2 (Video)

September 22, 2015

September 22, 2015  by Mike Finger  3   0

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On CNBC this afternoon, Peter Schiff got into another heated confrontation with Scott Nations about the Federal Reserve. Peter defended his record concerning Fed rate hikes, as well as his long-term advice to buy physical gold. Meanwhile, all Nations could turn to as proof of a coming rate hike in 2015 were unemployment figures. But as Peter has consistently pointed out, the phony unemployment data has been constantly improving – so why hasn’t the Fed raised rates?
Peter and Nations refer back to their last encounter in July – click here to watch it now.

I was telling people to buy gold when it was under $300, and it’s still over $1100. Gold has outperformed the US stock market since I made that call. Yes, gold is off the highs. So is the stock market. Gold is down less than the stock market today. I still think it’s going a lot higher, and probably Scott’s not going to buy any…”

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Highlights from the interview:
“I don’t think Janet Yellen ever intended to hike rates. That was the point I was making the last time I was on [CNBC]. They use the excuse of global markets or the global economy, but that had nothing to do with the Fed’s decision. That was simply their excuse not to do what they never had any intention of doing, because they can’t – and that is raise interest rates. We are stuck at zero.

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New Silver Applications as Physical Supply Heads to Deficit

September 22, 2015

September 22, 2015  by Mike Finger  0   0

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The demand for physical silver rose through the first half of 2015.
The need for silver in manufacturing, its expanding use in health applications, and increased demand for silver jewelry all helped drive the surge.

According to GFMS Thomson Reuters, the precious metals consultancy, imports of silver into the United States jumped 11% through the end of May, as reported by the Silver Institute.

The United States is the largest importer of silver jewelry, measured in dollar terms, and this demand impacts silver trade across Asia. US imports from Thailand were up 18.5% through the end of May while China showed an increase of 14% in the same period. GFMS estimates that silver jewelry will grow 5% worldwide in 2015.”

Industrial use drove the surging demand, accounting for about 60% of increase. GFMS estimates a 2% growth rate in industrial applications of silver over the next year, driven by increasing solar panel production.

In the renewable energy industry sector, the demand for silver by solar panel producers is expected to increase 8% to 65 million ounces this year. The rise reflects increased solar cell production and a higher number of installations. The increase is pegged to the US, which saw a 76% increase in solar installations in the first quarter of 2015 compared to the same period last year.

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Debt, Manipulation, and the Gold Standard

September 22, 2015

September 22, 2015  by Mike Finger  0   0

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Our readers often ask tough questions about the economy, monetary policy and precious metal markets. During a recent interview, Gold Standard Institute USA president Keith Weiner provided some insightful and clear-cut answers to some of the complex issues facing us today.

Weiner was first asked to pinpoint the root of today’s economic mess. He summarized it in one sentence.

The short answer is: rising debt. It’s not only rising, but rising exponentially—the debt doubles about every eight years.”

Weiner then breaks the question down with medium and long term analysis.

In 1971, President Nixon defaulted on the US government’s gold obligations. This plunged us into a worldwide regime of irredeemable paper currency. Gold was banished from the monetary system, no longer allowed to fulfill its function as extinguisher of debt. The dollar was turned into a mere IOU. You cannot pay off your debt by issuing IOUs, as you cannot get out of a hole by digging deeper. At the same time, the interest rate was unhinged. It was free to shoot the moon, as it did until 1981. It was equally free to fall into the black hole of zero, which it has been doing since 1981. Falling interest causes massive, but mostly hidden, capital destruction.

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If This Is a Recovery, We Don’t Want to See the Next Downturn

September 21, 2015

September 21, 2015  by Mike Finger  0   1

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Thus far, the so-called economic recovery has done little to improve the lives of everyday Americans.
In yet another sign that the recovery is an illusion, figures released last week and reported by Reuters show American’s household income lost ground last year.

The data released by the U.S. Census Bureau on Wednesday, which showed the inflation-adjusted median income slipping to $53,657 last year from $54,462 in 2013, offered a reminder of the tepid nature of the economy’s recovery.”

Putting the number into a broader perspective reveals an even grimmer reality. According to US Census Bureau researchers, “In 2014, real median household income was 6.5 percent lower than in 2007, the year before the most recent recession.”
The recovery has also done nothing to lift Americans out of poverty. The rate remained virtually unchanged at 14.8%.
Despite the rosy spin government official put on economic data such as the unemployment rate, Americans aren’t buying it. Their expectations about the economy are sinking along with their household income. Bloomberg reported that economic outlook dropped to a four-month low in August.

The measure tracking the economic outlook declined to 44.5 this month from 46 in August, data from the Bloomberg Consumer Comfort Index showed Thursday.

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Yellen Admits Interest Rates Could Stay at Zero Forever (Audio)

September 18, 2015

September 18, 2015  by Mike Finger  2   2

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Just as Peter Schiff predicted, the Federal Reserve did not raise interest rates yesterday. In fact, in the press conference following the Federal Open Market Committee meeting, Janet Yellen admitted to a reported that it is not impossible that the Fed might hold rates at zero forever.
Peter discusses this news, the movement of the gold price, and the latest economic data in his podcast published yesterday.

Janet Yellen actually believes that if the Fed wanted to keep interest rates at zero forever that they actually could. I’m willing to rule out that possibility. There is no way that interest rates are going to be at zero forever. Not even close. They’re not even going to stay at zero until the end of this decade. There is going to be a currency crisis that forces the Fed to raise rates…”

[embedded content]

Highlights from the podcast:
“Today we got the official answer from Janet Yellen [regarding a rate hike], and the answer was, ‘No.’ For the 54th consecutive time, the Federal Reserve has left interest rates unchanged at zero. What I think is even more amazing than the Fed left them at zero, but that in the Q&A that immediately followed the official announcement, Janet Yellen admitted that she could not rule out the possibility that interest rates would stay at zero forever.

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There Is No Way the Fed Will Raise Rates Significantly Today (Video)

September 17, 2015

September 17, 2015  by Mike Finger  4   4

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Marc Faber spoke with Bloomberg TV this morning to explain why he thinks the Federal Reserve will take no significant steps towards raising interest rates when its meeting concludes today. Like Peter Schiff, Faber predicts the Fed will not commit to any steady schedule of rate hike increases and that a fourth round of quantitative easing is just around the corner.

They cut interest rates to zero in December 2008, so in three months time we will have the anniversary of almost seven years of almost zero interest rates. What I’m saying is that this has created a lot of distortions in the system, and I believe we’re going to pay for it…”

What has seven years of zero-percent interest rates done to the US economy? Find out in our free special report: Why Buy Gold Now?

Highlights from the interview:
“I know exactly what they [the Fed] will do today. They will either leave rates where they are, or increase a quarter of a percent. I think they will probably do nothing… Number two, I think the damage has already happened. People simply don’t remember that Greenspan deliberately created the Nasdaq bubble. Then the bubble burst, then deliberately – and this is written in statements – created the housing bubble in the US, built on credit.

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Fed Rate Hike: Will She or Won’t She? (Audio)

September 16, 2015

September 16, 2015  by Mike Finger  0   0

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Peter Schiff reviews the latest economic data ignored by the mainstream media and maintains his forecast that the Federal Reserve will not raise interest rates this week. Peter also explains why mainstream analysts are all wrong, whether they argue for or against a rate hike.

What does the Fed have to hang their hat on? All the economic data is pointing towards a decelerating economy, towards recession. All they can do it point to the jobs numbers and say, ‘Well, but we have a low unemployment rate.’ So what? First of all, employment has already been a lagging, rather than a leading, indicator. Companies don’t lay people off, and then we have a recession. That’s not how it works…”

[embedded content]

Highlights from the podcast:
“I still think the odds are that they [the Federal Reserve] won’t do it – that they’re going to leave interest rates at zero. But everybody is discussing whether or not the Fed will raise rates, or if they should raise rates…
“Here’s what nobody talks about. The official target for the Fed Funds Rate right now is between zero and 0.25 basis points. So the Fed is targeting a range. The low end of that range is zero. The upper end of that range is 0.25.

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Peter Schiff Was Right: Federal Aid Inflates College Tuition (Video)

September 16, 2015

September 16, 2015  by Mike Finger  0   0

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Here’s another story for the “Peter Schiff was right” archive and another testament to just how clueless mainstream economists can be.
Three years ago, it was already becoming clear that ballooning student debt defaults were becoming a major problem. CNBC reported that the loan “industry underestimated defaults by a whopping $225 billion.” We wrote earlier this week about the latest White House data revealing just how much worse the defaults have become.
In the summer of 2012, Peter appeared on CNBC to debate why the federal government should get out of the student loan business. Diana Carew, an economist with the Progressive Policy Institute (PPI), appeared alongside Peter to defend the need for federal college funding.

You can watch the video below, in which Carew counters Peter’s economic arguments with straw men, suggesting that Peter wants to “get to decide who goes to college.” Carew used the same emotional rhetoric employed by politicians:

Investment in human capital is never a waste of money. Of everything the government can spend its money on – entitlement programs, subsidizing the housing sector – human capital should never be sacrificed.”

They both agreed that college degrees are no longer worth as much as they cost, but they disagreed on the root cause.

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The Fed Is Waging Jihad Against Savers and Retirees (Video)

September 15, 2015

September 15, 2015  by Mike Finger  2   0

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David Stockman, former Budget Director under President Reagan, appeared on Fox Business to warn that the United States faces a financial “time bomb” of $19 trillion of ballooning debt. This debt load will eventually become unsustainable when interest rates rise, which is an inevitability. Stockman points to the same historical data as Alan Greenspan – interest rates are traditionally 2-4% above the rate of inflation, and no amount of manipulation by the Federal Reserve can suppress them forever.

The 2% [inflation] is totally a made up target that conveniently allows them to shovel free money into Wall Street. It never does get to Main Street. The whole idea of zero interest rates is to get consumers and households all jiggy, and get them borrowing and spending. But that doesn’t work anymore, because we’re at peak debt. Households have $13 trillion of debt. “

Stockman’s warnings about debt are one of the key reasons investors should consider buying gold now.

Watch the latest video at video.foxbusiness.com

Highlights from the interview:
“[Debt] is the time bomb. It’s the heart of the issue. I’m talking about the Fed and the upcoming decision. I’m arguing that the jig is up. 80 months of ZIRP – zero interest rates – is crazy enough.

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White House Reveals Student Loan Default Rate

September 14, 2015

September 14, 2015  by Mike Finger  0   0

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At the end of 2014, the New York Fed reported a surprisingly high delinquency rate for student loans – 11.3%. Now the latest data released by the White House reveals that number may in fact be dramatically higher. As the Wall Street Journal reports:

New figures covering more than 3,700 schools were released as part of the White House’s College Scorecard, which allows consumers to explore data about debt and degrees. The average repayment rate among almost 1,200 for-profit schools—meaning these students were actively paying off loans—was 61%, the lowest of any sector. The average repayment rate among all colleges was 73%.”

If 73% of college loans are being repaid, that means about 27% are not, which is far more than double the 11.3% the Fed reported last year.
And that’s just the average. 347 of the schools in the White House’s report (almost 10% of the institutions) reported that more than half of their students have defaulted or never made a payment on their loans after 7 years.
Learn about the dire effects this trend will have on the United States economy in our free special report – The Student Loan Bubble: Gambling with America’s Future.
Why are so many students simply not paying back their loans? One key reason is that they simply cannot afford the payments.

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Perception Is the New Truth: Physical vs. Paper Gold (Video)

September 10, 2015

September 10, 2015  by Mike Finger  1   1

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Bloomberg Business interviewed Peter Hambro, Chairman and Co-Founder of Petropavlovsk – one of the largest gold mining companies in Russia. Hambro presented physical gold to the Bloomberg anchors, who seemed genuinely dubious as to its value, insisting that gold is for “speculators.” Hambro clarified that “paper gold” is for speculators, and he believes the Comex futures market is going to come crashing down eventually – something we wrote about yesterday.
As an industry insider, Hambro shared invaluable insights into the physical gold market, especially when it comes to Asian demand:

In the Shanghai market, which is the only big physical market, recently introduced by the Chinese – year on year, they delivered 55 million ounces from August to August. That’s 65 billion dollars worth of physical gold. That is about half of the world’s mine supply.”

Hambro also shared Peter Schiff’s opinion that the Federal Reserve is not going to raise interest rates. Rather, all the Fed has to offer are economic bedtime stories to influence market perception. Click here to learn why you want to buy gold when perception becomes more important than reality.

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The US Economy Is One Giant Bubble (Audio)

September 10, 2015

September 10, 2015  by Mike Finger  0   1

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Last weekend, Peter Schiff spoke with Free Talk Live, a nationally syndicated radio show. They discussed the growing student debt bubble, Peter’s imprisoned father Irwin, and the reasons why American businesses are moving to Puerto Rico. You can download the free report they discuss here: The Student Loan Bubble: Gambling with America’s Future.

The bubble in student loans is actually a small part of what is going on. The government has managed to reflate the housing bubble, the stock market bubble. We have a bond market bubble, a dollar bubble, a consumer loan bubble. The whole US economy is one gigantic bubble at this point. That’s all we got left…”

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Highlights from the interview:
“This is another example of government creating a problem before attempting to solve it. But you know, before the government got involved, college was not that big an expense. Kids could easily work their way through school. If your parents didn’t have the money to pay your tuition, like my dad – my dad’s parents didn’t have any money, so he worked his way through school. He was a waiter over the summer… Almost all my dad’s friends did the same thing. They all worked their way through college. They didn’t have any debt.

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Empty Vaults Serve as a Warning: Keep Your Gold Close

September 10, 2015

September 10, 2015  by Mike Finger  1   0

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An apparent gold scam recently uncovered in Austin, Texas, serves as reminder for investors to use caution when dealing with small, unknown companies.

According to the Austin American-Statesman, the vaults belonging to an Austin company claiming to store millions of dollars in precious metals for its customers turned up virtually empty.

By the time auditors and lawyers got access to Bullion Direct’s 14th-floor offices six weeks ago, there were only a handful of gold and silver coins in an office safe. A second vault it had recently rented held only slightly more. An estimated $30 million in cash, metal bullion and valuable coins, meanwhile, had vanished.”

Some investors reportedly lost hundreds of thousands of dollars.
Bullion Direct filed for bankruptcy on July 20. Several days earlier, the company abruptly shut down its operations and terminated all of its employees. Some believe the company’s founder and owner, Charles McAllister, set it up as a scam from the beginning. Ron Barbala said his 437 ounces of gold, silver, palladium and platinum simply vanished from Bullion Direct’s safes.
“He saw all of us coming a mile away, and played his cards very well,” he said. “If you steal bullion, unless you’re caught in the act, it’s impossible to trace.

Read More »

Comex Update: Plunge in Available Gold for Delivery

September 9, 2015

September 9, 2015  by Mike Finger  5   1

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The latest update from CME Group shows a huge outflow of gold held for delivery by Comex. There are now less than 6 tons of registered physical gold available for delivery. For every 207 ounces of gold claimed by paper contracts on the Comex market, there is only one ounce of physical gold in Comex vaults. This is the lowest “coverage” ratio in the history of the Comex.

What exactly does this mean for precious metals investors? The price of paper gold versus the price of physical gold is experiencing one of its biggest disconnects ever, because those paper gold contracts are so diluted. There’s never been a worse time to judge the strength of the fundamental strength of the physical gold market based upon Comex futures contracts.
If even a small fraction of Comex contracts were called in for delivery right now, there would not be nearly enough bullion to fulfill the orders. Major defaults on those contracts would occur, and the price of paper gold could collapse.
On the other hand, those left holding actual physical bullion would be find themselves part of a very prestigious minority.

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US Mint Silver Shortage – An Inside Look (Audio)

September 9, 2015

September 9, 2015  by Mike Finger  0   1

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SilverDoctors.com interviewed Tom Power, the CEO of Sunshine Minting. Sunshine is one of the biggest suppliers of silver blanks to the United States Mint, which the Mint uses to strike the American Silver Eagle coins. Sunshine also also supplies gold and silver blanks to producers around the world, and has its own line of very popular privately minted products.
This interview provides an inside look into the precious metals industry, which is currently gridlocked with huge demand and supply shortages. Power explains the mechanics behind these shortages, and why Sunshine Minting is experiencing demand that far exceeds that of 2011.

We’re running 24/7, and we have been running 24/7 literally since 2009 to meet the demands of the market… The kind of growth we’ve seen is that in 2007, 2008, our total annual output of finished product was in the neighborhood of probably 25-30 million ounces a year. We thought 2011 was our best year ever at 55 million ounces. We’re on track to exceed 75-80 million ounces this year…”

[embedded content]

Highlights from the interview:
“Sunshine has a long history supplying into the silver markets. We have the benefit of 30 plus years of history here… What we’re seeing right now is reminiscent of what happened 2009 through 2011. I actually think it’s even stronger now than it was back then.

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Don’t Let a Little Debt Get in the Way of Learning (Video)

September 8, 2015

September 8, 2015  by Mike Finger  0   1

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When Alexis meets Scott Govinsky (“Everybody calls me Gov”), she’s ready to drop out of college and pursue a small business that has been making her money. Gov convinces Alexis to not only stay in school by taking out a loan, but to go into even more debt than necessary by traveling abroad in Italy.
Gov tries to brush reality under the rug when he says, “Don’t let information get in the way of learning.” What exactly is the information Gov ignores? The same information we share in our new white paper – The Student Loan Bubble: Gambling with America’s Future. Students aren’t the only ones who have to worry about college loans – the entire US economy is going to feel it when this bubble bursts.
Enjoy the video below, then click here to download SchiffGold’s free white paper.
[embedded content]
This is the first part of a short comedy series published by The Independent Institute – “Love Gov”. The series pokes fun at the many problems of big government, personified by Gov. Sometimes reality is so bad, the only way to grapple with it is through humor. However, while “Love Gov” might make you smile, the Orwellian arguments coming from Gov sound all too familiar:

That’s what loans are for – when you don’t have the money for it. Sounds like someone needs an education. I know some people.

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Stock Volatility Is a Precursor to Recession (Video)

September 4, 2015

September 4, 2015  by Mike Finger  0   0

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Early last week, Newsmax TV interviewed Peter Schiff and Steve Beaman, Chairman of The Society to Advance Financial Education. The had a friendly conversation about the factors that triggered the dramatic fall in Chinese and US stocks. Surprisingly enough, Beaman agreed with much of what Peter said about the Federal Reserve, though he still maintained that investors need not worry about a looming recession.

Productivity has been falling. The first quarter of this year and the fourth quarter of last year we had big drops in productivity. Corporations have already spent all that cash in record share buybacks, and of course they bought back all that stock at much higher prices. That was cash they should have used to invest in plant and equipment, which is the oldest it has been in over 60 years. Whatever cash they have left, they’ve borrowed. I think corporate balance sheets are a mess. So are individual balance sheets. Everybody in this country is loaded up with debt, including the federal government.”

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Highlights from the interview:
“The Chinese stock market is about unchanged on the year, slightly down. The US market is down a lot more in 2015 than the Chinese market. The Chinese market did spike up earlier in the year, but it simply reversed that spike.

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Gold Is Money, Not a Commodity; If You Want Money, Have Some Gold (Video)

September 4, 2015

September 4, 2015  by Mike Finger  0   0

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Jim Rickards defended holding 10% of your portfolio in gold on Fox Business this week. Dagen McDowell aggressively challenged his argument that gold is the equivalent of an insurance policy for your wealth, but Rickards pointed to thousands of years of history supporting his investment strategy. Rickards also stuck with his forecast for the gold price to hit $10,000 per ounce sooner than later.

When people say gold is up, I don’t think of it as up. I think the dollar is down. In other words, you get less gold for your dollar, so the dollar is really down. If gold went to $10,000 an ounce – which I do expect – I wouldn’t think of it as a rise in gold, I would think of it as an 80% collapse in the dollar…”

Watch the latest video at video.foxbusiness.com

Highlights from the interview:
“I definitely do [recommend buying gold]. For a long time, I’ve recommended about 10% gold. Don’t go all in… It’s kind of like insurance. It’s like fire insurance on your house. Nobody wants their house to burn down, but heaven forbid if it does, you’re glad you have the insurance. So have a slice of gold, along with stocks and bonds and cash and other assets…
“As far as gold is concerned, people say it has no yield. Take a dollar bill out of your purse or wallet.

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Foreign Central Banks Yanking Gold Out Of Fed’s Vaults

September 4, 2015

September 4, 2015  by Mike Finger  0   1

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Foreign central banks want their gold back and they are pulling it out of Federal Reserve bank vaults.
According to a recent Federal Reserve report on its foreign official assets, physical gold holdings fell 9.6 tons last month to 5,950 tons. Total foreign physical gold held by the Fed now sits at just over $8 billion, down more than $67 million since January. If that figure sounds low to you, it is. Since 1973, the Fed has valued its gold based upon a statutory $42.22 price per ounce.

Federal Reserve foreign gold holdings dropped every month this year except June, when they held steady. Put in broader perspective, foreign central banks have withdrawn 192 tons of gold over the past year, and 246 tons since the January 2014.
This reflects a continuing trend of foreign gold repatriation.
In early 2013, the German central bank (Bundesbank) announced it would begin the process of repatriating massive amounts of its physical gold reserves back into the country. The Bundesbank repatriated 120 metric tons of gold in 2014. In the fall of that same year, the Netherlands followed suit, taking delivery of some of its physical gold holdings from the New York Federal Reserve Bank. The Dutch central bank increased its domestic holdings of physical bullion from 11% of total gold reserves to 31%.

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Peter Schiff Defends His Forecasts and Rails Against College Propaganda (Audio)

September 3, 2015

September 3, 2015  by Mike Finger  1   0

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In his latest podcast, Tom Woods talks with Peter Schiff about Peter’s track record of forecasting, past and present. Peter defends the performance of his investment strategy, explaining why he thinks mainstream naysayers will soon be proven wrong. After that, Peter and Tom discuss the terrible and absurd condition of college education and the looming student loan bubble. You can download a free white paper on that topic here: The Student Loan Bubble: Gambling with America’s Future

Government wanted to make college more affordable. They made it more expensive. And at the same time, they destroyed the value of the degree. It costs more to get a degree, and the degree is worth less, because everyone now has one. If you actually want to differentiate yourself, you got to get a master’s degree. You got to get a PhD. A college degree means nothing. I think a college degree today has less marketable value than a high school diploma did before the government started subsidizing college. This whole bubble is going to burst…”

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Highlights from the interview:
“I think China is going through a bit of a transformation. I have been forecasting this for many, many years. I wrote about it in my original book Crash Proof.

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Gold Will Take Off as Fed Loses Credibility (Video)

September 2, 2015

September 2, 2015  by Mike Finger  4   0

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Peter Schiff shared his perspective on the gold market with Kitco News yesterday. Other guests on Kitco have insisted that the Federal Reserve has no choice but to raise interest rates in September, or else the Fed won’t be able to deal with a looming recession. Peter counters this by pointing out how a small rate hike immediately followed by quantitative easing and an rate cut would completely undermine the Fed’s credibility. What about the price of gold? It will rise when the markets wake up to the fact that the Fed’s biggest easy money days are yet to come.

It’s the strength of the dollar and the anticipation of future strength of the dollar [that is driving gold right now]. So many people misunderstand the true strength of the US economy. They don’t understand that it’s a bubble, not a recovery. They’ve misinterpreted what they believe the Fed is going to do. They think the Fed is going to be raising rates, shrinking its balance sheet. That is not what it’s going to be doing. It’s going to be expanding its balance sheet faster than ever before. It’s going to be holding interest rates at zero as long as it can…”

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Highlights from the interview:
“I don’t think the Fed ever really seriously considered raising rates in the first place. I think they wanted to create that impression.

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Frightening Data Points to Potential Market Panic & Fed Inaction

September 2, 2015

September 2, 2015  by Mike Finger  2   0

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Yesterday, the Arms Index (TRIN) spiked dramatically to levels not seen since 2011 and nearly twice as high as last week’s “Black Monday.” The Arms Index is a way of measuring how balanced the stock market is, with higher values suggesting the market might head in a bearish direction sooner than later. As ZeroHedge describes it:

A sudden surge in the TRIN indicates a jump in trader lack of confidence, as everyone scrambles to either go long the 2-3 rising stocks, or to sell or short the biggest decliners, ignoring the bulk of the market.

Of course, the Arms Index is a purely technical indicator that stock speculators watch closely, but it coincides with a growing mountain of data pointing to frightening volatility in American stocks and major cracks in the rosy mainstream narrative of an economic recovery in the United States. International banks, investment firms, big-name fund managers, and everyday technical analysts have all been sharing insights into terrible data and trends the financial media has largely ignored.
The spike in the Arms Index is accompanied by a giant surge in the Chicago Board Options Exchange Volatility Index (VIX) last week, which shot up to levels not seen since the financial crisis.

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