Wednesday , February 24 2021
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Articles by Schiff Gold

US Treasury Department Set to Unleash Another Tidal Wave of Inflation

1 day ago

The Federal Reserve increased the money supply at a record rate in 2020. And a move recently announced by the US Treasury Department will mean even more money flooding into the marketplace. In other words, another tidal wave of inflation.The Treasury plans on drawing down the $1.6 trillion balance in its Treasury General Account (TGA) at the Federal Reserve. According to the announcement, the Treasury plans to cut the accounts balance in half by April and draw it down to $500 billion by the end of June as the Biden administration ramps up spending even more in the coming month.The TGA holds funds coming into the federal government from both taxes and the sale of Treasury bonds. The amount of cash in that account has skyrocketed in recent months as the Treasury has borrowed to pay for

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The Fed Just Keeps Getting More and More Dovish

1 day ago

Is Jerome Powell the most dovish Fed chair yet?Peter Schiff said he wasn’t when he first took the position and was raising interest rates. But he is now. The minutes from the January FOMC meeting released last week bear this out.“We’re all doves now. That is the problem, the Fed gets progressively more dovish,” Peter said in a recent podcast.An economy built on a foundation of debt needs more and more monetary accommodation to keep it going.Whatever preconceived notions Powell had when he first took the job, he’s now been faced with reality. And the reality is it’s going to hit the fan unless you keep printing money. And that’s exactly what they’re going to do.”That’s exactly what the January minutes revealed. It’s clear the central bankers think the economy is going to take longer to

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Peter Schiff: Uncle Sam Funds Christmas in January

3 days ago

After three straight months of sagging retail sales, American consumers flush with stimulus money went on a spending spree last month. Retail sales surged 5.3% to start the year, significantly beating expectations. In his podcast, Peter Schiff called it Christmas in January.[embedded content]The Christmas season was a disaster for retailers. Sales dropped in October and November and then fell again in December. In fact, the Commerce Department revised December sales down from a 0.7% drop to a 1% decline.The expectation for January was a 1.1% gain, so 5.3% was a huge beat. And when you take out automobile sales and gasoline, the gain is even bigger – 6.1%. Peter called these “big, big numbers” with Americans spending a lot of money.Spending on electronics and appliances was up 14.7%.

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Translating Fed-Speak: SchiffGold Friday Gold Wrap Podcast Feb. 19, 2021

5 days ago

The Federal Reserve released the minutes from its January meeting this week. It featured some pretty thick Fed-speak. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey translates and tells you what the Fed is telling you about inflation. He also talks about why he thinks gold and silver are both struggling in an economic environment that should be bullish for precious metals. 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 and Stitcher.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

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Jerome Powell Says We Must Sacrifice – But for What?

6 days ago

Last week, Federal Reserve Chairman Jerome Powell called for a “society-wide” commitment to reaching full employment. As Peter Schiff put it, Powell basically handed the US government a blank check in order to achieve this “maximum employment goal.” We’re told we shouldn’t even worry about the massive deficit spending and additional debt this will incur. It’s all hands on deck and everybody needs to sacrifice. But what exactly does the Fed mean by “maximum employment?” What are we to sacrifice for?Nobody knows. Not even the Fed.As Robert Aro put it, “The Fed cannot reach this lofty goal, as they are unable to articulate exactly what the goal is.”But we must sacrifice to get there!Keep the definition of “maximum employment,” as explained by the Federal Reserve, forever in mind; and

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Four Key Reasons Gold Can Enhance Your Portfolio

7 days ago

Why buy gold?The report released by the World Gold Council offers four reasons to add gold to your portfolio. What makes gold a strategic asset in the first place? The World Gold Council provides a quick summary of gold’s qualities.Gold benefits from diverse sources of demand: as an investment, a reserve asset, jewelry, and a technology component. It is highly liquid, no one’s liability, carries no credit risk, and is scarce, historically preserving its value over time.”The WGC offers four key ways gold can enhance an investment portfolio.ReturnsDiversificationLiquidityPortfolio PerformanceGlobal investment demand has reflected this, growing by an average of 15% per year since 2001. The gold price has increased almost seven-fold over the same period.Most people think of gold primarily

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Peter Schiff: Inflation Is Good for Gold; High Inflation Is Better for Gold

7 days ago

The bond market is getting clobbered. Long-term interest rates are rising and that is putting significant pressure on gold. Peter Schiff talked about rising rates and the gold market in a recent podcast. He said the rise in long-term yields is a function of inflation and people seem to forget that inflation is good for gold. On Tuesday, the yield on the 10-year Treasury was just under 1.3%. It was just last month that the yield hit 1% for the first time since COVID. In other words, the 10-year yield is up 30% in just one month. That is a huge move in the world of bonds. Meanwhile, the yield on the 30-year Treasury hit 2.09%. It just eclipsed 2% on Friday.But even with this big rise in interest rates, the only markets that seem to be feeling the effects are gold and silver. On Tuesday,

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$30 Silver Is Quite a Bargain

8 days ago

Silver enjoyed a moment in the spotlight when the Reddit Raiders turned their attention to the white metal. The online investors weren’t able to pull off a short-squeeze in the silver market, but we’ve said all along that there are fundamental reasons to be bullish on silver.  Given the supply and demand dynamics coupled with the prospect of inflation, $30 silver is likely quite a bargain.In fact, a portfolio manager at Crescat Capital told Kitco News that sub-30 dollar silver “is the most attractive macro-economic asset in the world.”Tavi Costa is also bullish on gold, primarily due to central banks flooding the world with easy money and unprecedented stimulus. He thinks this excessive liquidity will push inflation pressure even higher.Investors are already starting to see that

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When Government Spends You Pay — One Way or Another

8 days ago

The US government is spending money at a torrid pace. Uncle Sam blew through $547 billion in January. That brings total spending through the first four months of fiscal 2021 to $1.92 trillion.And the spending spree is only going to increase. Congress continues to debate another $1.9 trillion stimulus package and there’s already talk of an infrastructure spending bill in the pipeline after that.This raises the $1.9 trillion question: how is the government going to pay for all this?Americans seem to have lost sight of an old truth – there is no such thing as a free lunch. Eventually, somebody has to pay the bill. As Peter Schiff explains in this short clip from his talk at the Virtual Money Show, there are really only three ways the government can pay its bills. And ultimately, the money

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US Government Runs Another Massive Budget Deficit in January

9 days ago

After running the biggest December budget deficit in history, the US government followed up with another massive budget shortfall in January.According to the Monthly Treasury Statement, the January deficit came in at $162.83 billion. That’s nearly five times bigger than the January 2020 shortfall.That brings the total deficit for fiscal 2021 to $735.73 billion in just four months. To put that into perspective, that is slightly higher than the 2014 deficit and would rank in the top-10 highest deficits ever run.Uncle Sam spent $547 billion in January. That brings total spending through the first four months of fiscal 2021 to $1.92 trillion. Spending in January was up 26% year-on-yearFederal receipts came in at $384.7 billion, a 3% y-o-y increase.As of Feb. 11, the national debt stood at

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Peter Schiff: Signs of Inflation

9 days ago

Last week, Federal Reserve Chairman Jerome Powell said he wasn’t worried at all about inflation. But there are signs that inflation is heating up everywhere, from surging commodity prices to rising bond yields. In his podcast Friday (Feb 12) Peter Schiff talked about increasing inflation and the unreasonable expectations Wall Street has when it comes to the Fed’s willingness or ability to do anything about it.[embedded content]Commodity prices and bond yields continue to climb. On Friday, oil closed over $59 a barrel, a new post-COVID high. Peter said he thinks after some consolidation around $60, oil could make a beeline to $80.I think we have a good chance of seeing $100 oil before the end of the year.”The last time we had $100 oil was in 2014. But a lot has changed since then.The US

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Economics Is a Thing: SchiffGold Friday Gold Wrap Feb. 12, 2021

12 days ago

With Joe Biden in the White House and Democrats controlling both houses of Congress, it seems pretty certain we’re going to get a federal $15 an hour minimum wage. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey discusses the economic ramifications of minimum wage laws. Hint — they are not good. He also talks about Fed Chair Jerome Powell’s comments this week and why they should make you even more bullish on gold.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 and Stitcher.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

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Indian Gold Market Continues to Show Signs of Revival

13 days ago

Last month, we reported on signs of revival in the Indian gold market. Gold imports hit a 19-month high in December.That revival has continued into 2021. Gold imports in January were up 72% year-on-year, and some shifts in government policy could give demand another shot in the arm.India ranks as the second-largest gold consuming country in the world, second only behind China. But over the last couple of years, the gold market in India has languished. The pandemic crushed demand, particularly for gold jewelry, but record-high gold prices in rupee terms and government policy put a drag on the gold market even before COVID-19.There were signs of a turnaround late last year and it continued through the first month of 2021.India imported 62 tons of gold in January, according to an anonymous

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Peter Schiff: The Federal Reserve Has Handed the US Government a Blank Check

13 days ago

On Wednesday, Federal Reserve Chairman Jerome Powell called for a “society-wide” commitment to reaching full employment, calling for “contributions from across government and the private sector.” He said getting people back to work would require “continued support from both near-term policy and longer-run investments.” He also dismissed concerns about debt saying the focus needs to be on the economy’s immediate needs. As Peter Schiff put it in his podcast, Powell handed the US Treasury a blank check.Peter said Powell’s comments were among some of the most dovish he’s ever heard.I know I’ve said that before, except every time Powell speaks, he exceeds his prior level of dovishness. So, he’s getting more and more dovish as time goes by.”[embedded content]The markets didn’t show much

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Silver Demand Projected to Rise 11% in 2021

14 days ago

Silver got a brief boost when the Reddit Raiders turned their attention to the white metal. The online investors weren’t able to pull off a short-squeeze in the silver market, but we’ve said all along that there are fundamental reasons to be bullish on silver, the attention of Reddit Raiders notwithstanding.New demand projections for silver in 2021 bear this out. Silver demand is expected to rise 11% this year and reach 1.025 billion ounces, according to the Silver Institute’s forecast.If demand meets this projection, it will mark an 8-year high.The Silver Institute forecasts both investment and industrial demand will rise in 2021.Investment demand hit a 5-year high in 2020. The projection is that it will top that in 2021, hitting a six-year high of 257 million ounces as investors

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What’s the Problem With Stimulus Checks, Trade Deficits and the Minimum Wage?

14 days ago

So, what’s wrong with stimulus, money printing, trade deficits, and the minimum wage? Peter Schiff appeared on Meet Kevin to tackle these questions and more.If price declines are normal, why not run the printing presses and hand out those stimulus checks? Simply put, it stops prices from falling and that represents a tax.Now people are denied the benefit of those lower prices.”Peter pointed out that if something becomes less expensive, it frees up purchasing power. You can buy more things – or save for the future.That’s going to result in economic growth in other areas, employment in other areas. So, we miss out on all that if the government inflates away those gains.”[embedded content]Last year, the US ran the biggest trade deficit ever. Why does that matter?Peter said in the

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The Inflation Tax Is Lowering Our Standard of Living

15 days ago

In a podcast, Peter Schiff said it smells like stagflation is on the horizon. Inflationary pressures are becoming more and more apparent. Labor costs, commodity prices and bond yields are all pushing upward – clear signs of inflationary pressure. And of course, defined correctly – as an increase in the money supply – there is no denying inflation is rampant. We saw a record increase in the money supply last year. The only time that even comes close was the stagflationary period of the 1970s.But what does this really mean for you and me?As Peter explained during a talk for the Virtual Money Show, inflation is really a tax.  Economist Karl-Friedrich Israel recently broke down data that show how this form of taxation has impacted Germans in an article published by the Mises

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Peter Schiff: All of This Smells Like Stagflation

15 days ago

We ended last week with some weaker than expected economic data – particularly the jobs numbers, but the stock market continues to go up. These days, the mainstream reacts to everything as good news. No matter what the data suggests, everybody seems to think things will come up smelling roses because of stimulus. But in a recent podcast, Peter said all of this smells more like stagflation.[embedded content]Peter said at this point, it doesn’t really matter whether the economic data is good, bad, or indifferent. The markets just keep going up.Everybody knows that the Fed is on hold indefinitely at zero percent rates. They’re not even thinking about thinking about thinking about raising interest rates. Wall Street knows that.”The Fed could also be considering another round of QE. After

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ETF Gold Holdings Back on the Upswing in January

16 days ago

After two consecutive months of outflows, gold-backed ETFs became net buyers of gold again last month. Gold-backed funds added 13.8 tons of gold to their holdings globally, driven by inflows in Europe-based funds, according to the latest data from the World Gold Council.Gold-backed ETF assets under management (AUM) globally now stand at 3,765 tons totaling $226 billion. That’s about 4% below the intra-month record of $3915.8 tons set in early November.In 2020, gold-backed ETFs recorded record net inflows of gold. Funds added nearly 231 more tons in 2020 than they did during the previous record year of 2009 (646 tons).European funds accounted for the bulk of the global inflows in January, with gold holdings rising by 17.5 tons. UK-listed funds led the way, adding 9.4 tons, followed by

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Fun on Friday: A Golden Tongued Mummy

19 days ago

Over the years, I’ve done a number of Fun on Friday posts about eating gold. You can have gold on your steak, on your desert, and even in your beer. Well, apparently some ancient Egyptians wanted the taste of gold in their mouths for all eternity. Archaeologists recently discovered a 2,000-year-old mummy with a gold tongue at an ancient Egyptian site called Taposiris Magna. Yes, I said gold tongue.And yes – it looks as creepy as you might imagine.But I should be clear – it wasn’t an actual tongue. It was gold foil shaped like a tongue and placed in the mouth.So, why would the living leave a golden tongue with the dead? Archeologists speculate that it was to enable the deceased to speak in the afterlife.I’ve heard of a “silver-tongued devil.” Maybe this mummy is a golden-tongued

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Fundamentally Speaking: SchiffGold Friday Gold Wrap Feb. 5, 2021

19 days ago

It’s been a crazy, volatile week for precious metals. The Reddit Raiders pushed silver to over $29 an ounce and the white metal took gold up with it. But the run was short-lived and we saw a big sell-off in both metals later in the week. In this episode of the Friday Gold Wrap, host Mike Maharrey tries to cut through all the smoke and mirrors and talks about the underlying fundamentals in both the gold and silver markets.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 and Stitcher.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

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US Mint Reports “Exceptional” Demand for Gold and Silver Coins in January

20 days ago

Last year’s surge in demand for investment gold and silver continued into January if sales at the US Mint are any indication.American Gold Eagle bullion coin sales were up 455% in 2020 and the selling continued through the first month of 2021. The mint called the current market demand for precious metals coins “exceptional.”Demand for physical gold and silver surged last year as smart investors sought safe haven from a record-breaking expansion in the money supply, record federal budget deficits, and quantitative easing set to infinity. While overall demand for gold was down on the year, investment demand hit record levels, according to the World Gold Council. Globally gold coin sales reached a record high of 297.6 tons last year. That was 10% above the previous high of 271 tons set in

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Peter Schiff: When Kashkari Talks, Smart People Buy Gold

20 days ago

Minneapolis Federal Reserve Bank President Neel Kashkari has been making the rounds. Peter Schiff talked about Kashkari’s recent comments on his podcast.Kashkari ranks as arguably the most dovish Fed president. Peter called him the “uber-dove” saying he basically wants to print as much money as possible.  During an online seminar put on by Montana’s Bureau of Business and Economic Research, Kashkari said the Fed needs to do even more to boost the economy and he’s not worried about overdoing it.“Right now I’m not concerned about it – this is like wartime spending,” he said, adding, “We have the capacity to do what we need to do.”The key now is for the Federal Reserve to keep our foot on the monetary policy gas until we really have achieved maximum employment as we call it. And I think

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Peter Schiff: You Can’t Compare GameStop and Silver

21 days ago

On Monday, Feb. 1, Peter appeared on NTD Business to talk about the attempted short squeeze on GameStop and silver. He said we shouldn’t compare GameStop stock to silver. Unlike GameStop, there are fundamentally sound reasons to buy silver, with or without the endorsement of the Reddit traders.When the Reddit Raiders turned their attention to silver, Peter tweeted that they were getting smarter. “Silver stocks are actually cheap and represent good investment value. The fact that some investors were foolish enough to short these stocks makes their trade even better.”[embedded content]So what’s the difference between GameStop and silver? Peter said it’s a “completely different story.”Silver is undervalued. I mean, it is way undervalued. Recently, it was historically cheap in relation to

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Focus on Fundamentals: Gold Supply Dropped Sharply in 2020

22 days ago

Total gold supply fell 4% year-on-year in 2020 to 4,644 tons. It was the largest annual decline since 2013, according to data from the World Gold Council.The decline was primarily driven by disruptions in mine production due to the COVID-19 pandemic. Gold mine output fell 4% on the year. More significantly, it marked the second straight yearly drop in mine production and continued a trend of flatlining gold mine output.The supply of recycled gold was up about 1% in 2020, but recycling was also impacted by coronavirus restrictions. With gold prices at record levels, recycling would have likely been much higher absent travel restrictions and mandated business closures. Even so, recycled gold came in at 1,297.4 tons in 2020, the highest level since 2012.Peru saw the biggest drop in gold

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Peter Schiff: SchiffGold Becomes SchiffSilver

22 days ago

The Reddit Raiders turned their eyes toward silver over the weekend. Interest in the white metal sparked a surge in retail demand and pushed the spot price of silver briefly over $29 an ounce. As Peter Schiff put it, the Reddit Riders were riding silver instead of piling into heavily shorted stocks.But how should we look at this recent run-up in silver? And where might it go from here? Peter talked about it in his podcast.[embedded content]Over the weekend, many of the big online retailers stopped selling silver and put messages on their website about shortages. But as Peter noted, there wasn’t actually a shortage of silver. These online companies don’t hold a lot of inventory. They buy silver from wholesalers and resell on the retail market. Since wholesalers were generally closed over

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The Fed’s Fiat Money System: Economically and Socially Destructive

23 days ago

The COVID-19 pandemic put Federal Reserve easy-money policy on hyperdrive. But make no mistake, the Fed was already forcing interest rates artificially lower and engaging in quantitative easing long before coronavirus arrived on American shores. In fact, there was no plausible exit strategy from this policy after the 2008 financial crisis and there is no exit for it today.It’s important to understand this isn’t just about rescuing the economy from a crisis. What was once considered “extraordinary” monetary policy is now the status quo and it’s necessary just to keep the economy chugging along.But as economist Dr. Thorsten Polleit writes, the unbacked paper-money system run by government bureaucrats and central bankers around the world “is an economically and socially destructive

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Three Reasons to Be Bullish on Silver With or Without Reddit Raiders

23 days ago

Silver is getting a lot of attention right now thanks to the so-called Reddit Raiders. But as Peter Schiff pointed out in a recent podcast, silver is a fantastic buy right now even absent the attention of message board investors. In fact, silver was poised to go up even before the Reddit crowd looked its way.Overall, the fundamentals are extremely bullish for silver in the long-term, without or without a push from the Reddit Raiders.Silver the Monetary MetalIn the first place, silver is at its core a monetary metal. Silver has been used as money for thousands of years. As government fiat currencies devalue, silver and gold both tend to hold their value as the prices increases in dollar-terms. Currently, the Federal Reserve and other central banks are creating money like never before.

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Peter Schiff: Reddit Raiders Ride Silver

23 days ago

As of Monday morning, the Reddit Raiders had driven silver to a 6-month high of over $29 an ounce. Peter Schiff talked about what’s going on in the silver market on his podcast Friday. He said that silver is a great buy right now, with or without the attention of the Reddit message boards.Peter opened the show noting that all the major stock indices were down on the week, and both the S&P 500 and the Dow Jones were down on the month.There’s an old Wall Street saying about the January effect: so goes January, so goes the year. And if that’s the case, we’re in for a rough year because we had a very rough January.”[embedded content]The hedge funds were hit particularly hard. This was in large part due to the fact that a lot of the stocks that the hedge funds shorted went up the most. It

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A Real Game Stopper: SchiffGold Friday Gold Wrap Jan. 29, 2021

26 days ago

If you follow the markets at all, you’ve heard about the big surge in GameStop stock driven at least in part by retail investors informed by social media. Now the Reddit investors have turned their eyes to silver. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey breaks down the GameStop phenomenon and argues that there are good reasons to be bullish on silver – not just the attention of the Reddit crowd. He also touches on this week’s Fed meeting and gold demand dynamics.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, Stitcher and Google Play.Tune in to the Friday Gold Wrap each week for a recap of the week’s economic and political news

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