Thursday , August 22 2019
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Peter Schiff: The Media Has Flipped the Narrative on Trump

19 hours ago

Last week, the yield curve inverted, with the yield on the 10-year Treasury falling below the yield on the 2-year for the first time in 12 years. This has historically been a good predictor of recessions. US stock markets sold off on the news, with the Dow shedding 800 points. As Peter Schiff noted in his most recent podcast, the mainstream also suddenly started talking about the possibility of an economic downturn.As Peter put it, the media has flipped the narrative on Trump.All of a sudden, a media, which was pretty much buying the booming economy narrative, now is questioning whether the economy is actually strong.”[embedded content]Pater said Trump is now accusing the media of being involved in some kind of conspiracy to make the economy look bad. He’s basically saying that all of

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Peter Schiff: Now Is a Great Time to Get Into Gold

20 hours ago

Markets have been yo-yoing and analysts have been debating what it all means. Peter Schiff appeared on on Aug 19 to talk about what’s going on in the global economy and more specifically in the gold market. Peter said now is an ideal time to get into gold.Peter started out the interview asserting that all of these interest rates that we’re seeing from central banks around the world aren’t going to help the economic situation.[embedded content]The problem in the global economy is not that interest rates are too high. It’s that the amount of debt is too high. And the reason there is so much debt is because central banks have already kept interest rates too low. And lowering them even more doesn’t solve the problem. It actually makes the problem bigger because it encourages even more

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Uncle Sam Is Spending Like We’re In Recession; What Happens When We Really Are?

2 days ago

Last week we got the updated federal budget deficit numbers. At $867 billion, the 2019 fiscal year budget shortfall has already eclipsed last year’s deficit of $779 billion.The out of control spending and spiraling deficits are concerning enough on their own terms, but they become absolutely horrifying when you consider that these budget shortfalls are happening during an economic expansion. You would normally expect numbers like this during a major recession.That raises an important question: what’s going to happen when the recession hits?Ryan McMaken parsed out the numbers in a recent article on the . The last time the deficit was this high was in fiscal 2012 when the budget shortfall reached nearly $1.1 trillion. At the height of the Great Recession-stimulus-panic, the deficit

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Mobius: Buy Gold at Any Level!

2 days ago

Last week we reported that the mainstream is turning bullish on gold, and in recent months, a number of prominent investors including Paul Tudor Jones, Thomas Kaplan and David Roche have all talked up the yellow metal. This week, we have another well-known veteran investor saying buy gold.During an interview with , Mark Mobius said that at this point investors should buy gold “at any level.”I think gold long-term prospect is up, up, and up.”Why is Mobius bullish on gold? As he put it, central banks are going to be printing lots of money in the near future.The reason why I say that is the money supply is up, up, and up. You know, with the efforts by these central banks to lower interest rates they’re going to be printing like crazy.”The Federal Reserve cut rates for the first time in

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Peter Schiff: There’s No Way Out and It’s Political Disaster for Trump

3 days ago

Peter Schiff appeared on Fox Business last week after the yield curve inverted and the Dow dove 800 points. Peter said the looming economic disaster for the US will turn into a political disaster for Pres. Trump.Peter started out the interview asserting that everything the Federal Reserve has done since the 2008 financial crisis was a mistake.[embedded content]All they did was succeed in making all the problems that caused that crisis worse. Now, they covered it up by inflating an even bigger bubble than the one that popped in ’08. But by trying to normalize interest rates, by trying to shrink their balance sheet, they pricked that bubble and now we’re going to complete the economic crisis that they interrupted in 2008. Except the back half is going to be much worse than the front

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Negative Interest Rate Absurdity and How It Screws Up the Economy (Video)

3 days ago

Negative-yielding debt surged to over $15 trillion earlier this month. This pile of negatively-yielding paper includes government and corporate bonds, along with some euro junk bonds.In a recent episode of the , Wolf Richter called this “NIRP absurdity.” And it could be coming to America.Negative interest rates started out as a short-term emergency experiment during the Great Recession. Now it has turned into the new normal. How will this end?[embedded content]Last week, the European Central Bank began hinting at another, “shock and awe stimulus package,” as Richter called it. In an interview with the , Finnish central bank governor Olli Rehn raised the prospect of new easing measures. He said, “It’s important that we come up with a significant and impactful policy package in September.

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Fun on Friday: Politicians Are Liars Edition

6 days ago

Politicians are liars.I’m sure you don’t need me to tell you this. Let’s just call it a friendly reminder.I was reminded of this fact as I wrote an article about the anniversary of Richard Nixon slamming shut the gold window for the Tenth Amendment Center. Yup. That anniversary was yesterday (Aug. 15). Bet you didn’t see anything about that in the mainstream media. It’s not a day in history that the mainstream fixates on too much. Because, you know, the results have been less than ideal.If you don’t know what I’m talking about, 48-years-ago yesterday, Nixon ordered Treasury Secretary John Connally to uncouple gold from its fixed $35 price and suspended the ability of foreign banks to directly exchange dollars for gold. In effect, he severed the last tie between the dollar and the gold

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Recession Warning! SchiffGold Friday Gold Wrap Aug. 16, 2019

6 days ago

The bond market flashed a major recession warning sign as the yield curve inverted this week. Meanwhile, Trump whipsawed markets when he appeared to blink in the never-ending trade war with China. That made for an interesting week for gold. In this week’s Friday Gold Wrap podcast, host Mike Maharrey breaks down the events of the last few days and their impact on precious metals. He also remembers an important day in history that went mostly unnoticed in the mainstream.The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.Tune in to the Friday Gold Wrap each week for a recap of the week’s economic and political news as it relates to gold and silver, along with

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Peter Schiff Wants to Go Double or Nothing on His 2006 Bet With Art Laffer (Video)

7 days ago

Economist Art Laffer owes Peter Schiff a penny after losing a 2006 bet.Now Peter is ready to go double or nothing.Peter won the penny on a bet he made with Laffer on Larry Kudlow’s TV show back in 2006. Peter said the economy as going to crash. Laffer said the economy was doing great and there was nothing to worry about.As we know, Peter was right.Laffer is at it again, claiming that the economy is strong. After the 10-year/2-year Treasury yield curve inverted Wednesday, Laffer told he doesn’t think a recession is imminent because the Trump administration won’t likely deviate from the policies that are making the economy hum.Peter said Laffer is as wrong now as he was then and he’s willing to go double or nothing on that penny bet.Check out Peter’s 2006 exchange with Laffer. It’s

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Yield Curve Inverts Flashing Recession Warning; Stocks Plunge

7 days ago

The yield on the 10-year Treasury fell below the yield on the 2-year for the first time in 12 years, stoking recession fears and tanking stock markets.Yield curve inversions have preceded all nine recessions since 1955.  This was the first time the 10-year Treasury yield has dropped below the 2-year yield since June 2007 – the cusp of the Great Recession.We saw other yield curves invert earlier in the year. In March, the yield on 10-year Treasurys fell below the yield on 3-year bonds for the first time since 2007, and global bond yields actually inverted last summer. At the time, the  called a yield curve inversion “Coco Chanel’s proverbial ‘little black dress’ of economic indicators.”The slope made up of bond yields of various maturities has a record of predicting recessions that would

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Peter Schiff: The World Will Drown in an Ocean of Inflation; Gold Is Going Ballistic

8 days ago

The gold market took a one-two punch on Tuesday as Trump made some concessions in the trade war and inflation numbers came in a bit higher than expected. Peter Schiff talked about it in his latest podcast, saying gold traders still don’t understand the gold rally.[embedded content]Stock markets surged as gold and silver dropped after US trade representatives said they would delay some of the additional tariffs recently announced by President Trump. The Dow closed 372 points higher. Meanwhile, the price of gold dropped below $1,500 briefly before rallying back above that key number.Gold actually began selling off before the trade war news when the Consumer Price Index number came in hotter than expected. Peter said he knew that would happen.That is the way the lemmings trade, because

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China Adds 10 More Tons of Gold to Its Hoard

8 days ago

China bought gold for the eighth straight month in July, adding another 10 tons to its rapidly growing hoard.The recent purchases boosted the People’s Bank of China’s gold reserves to 62.26 million ounces – about 1, 945 tons.  China has added about 94 tons of gold to its stash over the past eight months.The Chinese continue to add gold to their reserves in an effort to reduce their exposure to the dollar. As one analyst told , “It is important for the country to diversify away from the US dollar. Over the long run, even relatively small-scale gold purchases add up and help to meet this objective.”But China’s gold purchases, along with the buying spree in other countries, including Russia, also aim toward a broader geopolitical objective. They want to undermine dollar hegemony and reduce

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The Fed Has the US Economy on Life Support

9 days ago

The Federal Reserve has the US economy on monetary life support and managing editor Brian Maher says it will never again breathe on its own. As hedge fund manager Kyle Bass put it, the economy is trapped within the inescapable tractor beam of zero percent interest rates.As we have all learned, once an economy falls into the tractor beam of zero rates, it’s almost impossible to escape them… Growth numbers are going to come down and real growth might go to zero. We’re probably never going to go away from zero rates.”Peter Schiff often compares the US economy to a heroin addict and the Fed to its supplier. Easy money is the drug. The economy is hooked. And the Fed can’t cut off the drug without killing the addict.Maher uses an equally poignant analogy.Like a man hooked to a respirator,

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2019 Federal Budget Deficit Already Above 2018 Number

9 days ago

The federal government continues to spend America into a black hole and has already topped last year’s budget deficit with two months left in the fiscal year.The US budget deficit in July came in at $120 billion thanks to a surge in spending, according to data released by the Treasury Department.Uncle Sam spent $371 billion in July. That was 23% more than the government spent in July 2018. The Treasury brought in $251 billion. That number was up 12% compared to July 2018.The total budget deficit for fiscal 2019 now stands at $867 billion. That compares to a $684 billion deficit through the same period in fiscal 2018. With two months remaining in the fiscal year, the federal government has already topped the 2018 deficit, which was the largest in six years.And there is no end in sight to

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Is the Mainstream Turning Bullish on Gold?

10 days ago

In a podcast a couple of weeks ago, Peter Schiff said we now have all the elements of a gold bull market. Well, it looks like the mainstream might be starting to catch on. A headline at on Friday proclaimed “Hedge Funds Go All-In on Gold.”According to the report, hedge funds increased their gold net-long position by 23% to 285,082 futures and options, this according to US Commodity Futures Trading Commission data that was published on Friday. This figure measures the difference between bets on the price of gold going up and bets on a decline. It was the highest since July 2016. Meanwhile, long-only holdings also hit a three-year high. Short wagers dropped for a third straight week.In another sign that institutional investors are turning to the yellow metal, gold-backed ETFs are also

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American Consumers Propping Up Economy With Money They Don’t Have

10 days ago

Consumer debt is driving American economic growth.Total outstanding consumer debt surged over $4.1 trillion in the second quarter of 2019, according to the latest data released by the Federal Reserve.American indebtedness grew by 4.9 over the year, and the quarterly gain from Q1 to Q2 came in at $60 billion — the biggest second-quarter increase since Q2 2016.  Over the last 12 months, American consumers have piled on an additional $208 billion of debt.The consumer debt figures include credit card debt, student loans and auto loans, but do not factor in mortgage debt.As Peter Schiff noted in a podcast after the Q2 GDP number came out, this notion that the US economy is strong is “fake news.” Consumer spending increased by 4.3% and contributed nearly all of the GDP growth. Many of the

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Fun on Friday: Close Your Vault

13 days ago

I want Fun on Friday to be, well, fun. But I also want to provide a public service to you, my dear readers. Today, I have a really good pro-tip for you.Close your vault.And lock it.Because do you know what happens when you don’t close and lock your vault? Somebody will steal your gold.Now, I don’t just throw speculation at you fine folks. I bring you real-world examples to back up my assertions. As evidence that closing and locking your safe is good advice, I bring you the Mexico federal mint.Now you would think that a mint that deals with millions of dollars worth of gold coins would be pretty savvy about closing and locking vaults. And you would think wrong.According to news reports, three armed robbers got away with more than 1,500 gold coins worth about $2.5 million. The coins were

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Gold’s Record Week! SchiffGold Friday Gold Wrap Aug. 9, 2019

13 days ago

The price of gold surged this week, breaking all-time records in a number of currencies. It also did pretty well in dollar terms, hitting six-year highs and pushing above the key $1,500 level. Meanwhile, silver had its best single day in over three years. What drove this week’s precious metals rally? And can we expect it to continue? Host Mike Maharrey talks about it in this week’s Friday Gold Wrap. The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.Tune in to the Friday Gold Wrap each week for a recap of the week’s economic and political news as it relates to gold and silver, along with some insightful commentary.LISTEN[embedded content]You Can Also Listen on

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ETF Gold Holdings Hit Highest Level Since March 2013

14 days ago

Gold holdings in gold-backed ETFs globally surged to the highest level in over six years in July.Gold-backed ETFs added 52 tons of gold last month, with net inflows totaling $2.6 billion, according to the latest data released by the World Gold Council. This follows on the heels of a June increase that totaled 127 tons.Globally, gold-backed funds now hold 2,600 tons of gold. That’s the highest level since March 2013.The WGC says a combination of economic concerns, trade tensions and geopolitical risks, along with global monetary policy shifting to a more accommodative stance, all helped drive inflows of gold into ETFs.Gold flowed into ETFs in every region of the world in July. North American funds led the way, adding 43 tons of the yellow metal.European listed funds brought in 7.5 tons

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Silver Charts Biggest Single-Day Gain Since 2016

14 days ago

Gold pushed above $1,500 again Wednesday (Aug. 7) and silver joined the party, charting its biggest single-day gain in nearly three years.Silver surged 73 cents on the day for a 4.4% gain, closing above the key $17 level for the first time since January 2018. Silver has gained about 9.3% on the year.Continued trade war woes and more central bank easing helped drive both gold and silver higher.New Zealand’s central bank cut interest rates by 50 basis points to 1.50%. According to a report, the move caught markets off guard. As a result, the Kiwi plunged as much as 2.1% against the US dollar. The Reserve bank of India dropped rates for the fourth straight meeting, and Thailand’s central bank also initiated a surprise rate cut.Meanwhile in the US, Chicago Fed President Charles Evans

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Peter Schiff: We Have Global Currency Weakness; They’re All Losing Value When Priced in Gold

15 days ago

Several currencies have been strong against the dollar over the last couple of days, but as Peter Schiff said in his podcast, the biggest gainer wasn’t a currency at all. It was real money – gold.Gold hit six-year highs on Monday and set records in a number of currencies. It continued to move upward on Tuesday. Overnight, the yellow metal pushed briefly above $1,500. Any talk you hear in the media about the strong dollar simply by measuring it against some currencies … You don’t have a strong dollar when the price of gold is rising the way it is. We have a weak dollar. It’s just that we also have a weak yuan and we have a weak euro and we have a weak yen, because all these currencies are falling against gold.”[embedded content]Peter noted the all-time record highs for gold in countries

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A Race to Hell: Negatively Yielding Debt Tops $15 Trillion for First Time Ever

15 days ago

Negative yielding debt has exceeded $15 trillion globally for the first time ever.This pile of negatively yielding paper includes government and corporate bonds, along with some euro junk bonds. called it a “race to hell.”As the  put it last month, negative bond yields were once considered to be “economic lunacy.” Now they are economic normalcy.The Federal Reserve could have at least slowed the race down this road to hell with ist normalization project, but that didn’t go very far. The amount of negative-yielding bonds has grown precipitously since the Fed did a monetary policy 180 with the Powell Pause earlier this year. The European Central Bank poured fuel on the fire when it hinted at new rate cuts and even another round of quantitative easing.The Fed has now taken another step in

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Peter Schiff: Trump Trumps Fed With Tariff Card

16 days ago

The Federal Reserve’s modest rate cut last week disappointed President Donald Trump. He wanted more and he was quick to criticize Powell and Company. The very next day, the president trumped the Fed by slapping down the tariff card.Peter Schiff talked about the president’s move in a recent podcast. [embedded content]Trump took to Twitter right after the Fed announced its 25-basis point rate cut, tweeting, “What the Market wanted to hear from Jay Powell and the Federal Reserve was that this was the beginning of a lengthy and aggressive rate-cutting cycle which would keep pace with China, The European Union and other countries around the world. As usual, Powell let us down, but at least he is ending quantitative tightening, which shouldn’t have started in the first place.”The next day,

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Gold Hits Record Highs!

16 days ago

Gold hit record highs in a number of currencies on Monday as trade war worries, geopolitical uncertainty and expectations of a slowing economy drove investors to seek safe haven.During a recent interview on Fox Business, Peter Schiff said the trade is to get out of the dollar and look at gold. As if to prove him right, gold shot up about 1.5% Monday in dollar terms, hitting a six-year high. The yellow metal pushed to $1,469,60 before some profit-taking stalled the rally.Silver also made a strong showing,  rising 1.3% to $16.42 per ounce.But it was in other currencies that gold really shone. The price hit all-time records in a number of currencies including the British pound, the Indian rupee and the Japanese yen.Record Gold PricesBritish pound – £1,209.55 Indian rupee – Rs

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Peter Schiff: The Trade Is Get Out of the Dollar and Look at Gold (Video)

17 days ago

Right before the Federal Reserve raised interest rates for the last time in December 2018, Peter Schiff predicted the next move would be a rate cut. At the time, Fox Business anchor Liz Claman promised she would bring Peter back on if he was right.He was. And she did.The Fed cut rates for the first time in over a decade last week. Peter appeared on to talk about the cut, reiterating that it will not stop the coming recession. He also offered some advice to investors.[embedded content]Of course, Peter said he wasn’t surprised by the cut. After all, he predicted it was coming. He also said Fed Chair Jerome Powell wasn’t being honest about the reason for the cut.He’s trying to pretend it’s because of concerns about the overseas economy. It is really the US economy that is driving the Fed.

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Gold Demand Hit Three-Year High Through First Half of 2019

17 days ago

Gold demand jumped to a three-year high through the first half of 2019, driven by central bank gold-buying, inflows of metal into ETFs and a resurgence of Indian jewelry demand.Gold demand totaled 2181.7 tons through the first half of the year, according to the World Gold Council Gold Demand Trends Q2 2019 report. It was the strongest gold demand through the first half of a year since 2016.Global demand for the yellow metal was up 8% year-on-year in the second quarter, coming in at 1,123 tons.Record-breaking central bank buying was a major driver of Q2 demand. Globally, central banks bought 224.4 tons of gold in Q2. That brings the total on the year to 374.1 tons. China and Russia have been the biggest buyers as they continue efforts to diversify reserves, undermine dollar hegemony and

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Rate Cut! Tariff Hike! ShiffGold Friday Gold Wrap August 2, 2019

20 days ago

The Federal Reserve came through with its first interest rate cut in more than a decade this week. But with Jerome Powell trying desperately to convince everybody that this wasn’t the beginning of a long cutting cycle, the stock markets weren’t pleased. And neither was President Trump. So, he decided to put his own fingerprint on the markets, announcing new tariffs on Chinese products. In this week’s Friday Gold Wrap podcast, host Mike Maharrey breaks it all down and explains how it impacted the gold market.The SchiffGold Friday Gold Wrap podcast combines a succinct summary of the week’s precious metals news coupled with thoughtful analysis. You can subscribe to the podcast on iTunes.Tune in to the Friday Gold Wrap each week for a recap of the week’s economic and political news as it

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Peter Schiff: First Rate Cut on the Road to Zero

21 days ago

The Federal Reserve cut interest rates for the first time in over a decade Wednesday. And Jerome Powell left the door open for future cuts.Peter Schiff broke it all down on his most recent podcast, saying this is the first interest rate cut on the short road to zero.[embedded content]During his press conference after the FOMC meeting, Fed Chairman Jerome Power tried to straddle the fence. In the process, he ended up mixing his messages.Powell called the 25 basis point cut a “mid-cycle adjustment.” When asked about future cuts, the Fed chair left that door propped open, saying “As the committee contemplates the future path of the target range for the federal funds rate, it will continue to monitor the implications of incoming information for the economic outlook and will act as

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Watch Out America: China and Russia Are Coming After the Dollar

21 days ago

We’ve reported extensively on the central bank gold-buying spree that has been going on for nearly two years. Russia and China have led the way, along with several other countries including Turkey, Kazakstan, India and Poland.Central banks are buying gold to diversify reserves and minimize exposure to the dollar. This has been the mainstream narrative and it’s true. But China and Russia have a bigger geopolitical objective. They want to undermine dollar hegemony and reduce the United States’ ability to weaponize the dollar as a foreign policy tool.By-and-large, the mainstream has ignored this narrative.But some people in the mainstream appear to be catching on. An article recently published by by Brett Arends warned America to “watch out” because Russia and China are stockpiling gold

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Peter Schiff: Gold Will Go Much Higher Than $5,000 (Video)

22 days ago

In a podcast last week, Peter Schiff said we have all the elements of a gold bull market. This week, he appeared on Kitco News and talked with Daniela Carbone about what’s going on with gold. Peter said he thinks we’re at the beginning of a breakout from the consolidation we’ve seen in the market since it peaked at $1,900 back in 2011. He also said he thinks gold will push well-above $5,000.As he has been doing for months, Peter honed in on Federal Reserve monetary policy as the big driver.[embedded content]First of all, I do think the Fed cutting rates is part of the reason that gold is going to be rallying. It is the monetary policies and the mistakes that are being made, not just by the Federal Reserve, but by central banks all around the world, that is driving the narrative for

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