Last year at the Vancouver Resource Investment Conference, Peter Schiff bet Brent Johnson a gold coin that the Fed’s next move would be a rate cut. At this year’s conference, Peter collected his gold coin.Brent and Peter went on to debate the future of the US dollar. Brent says the dollar will go up this year. Peter thinks it’s going down. Peter put his money where is mouth is and went double or nothing against the dollar. [embedded content]Peter’s Highlights from the Discussion“The central bankers are going to continue pursuing this policy as long as they can do it without some type of a crisis that intervenes. But the problem is the longer they do it the worse it’s going to be.”“I don’t think it can go on that much longer. Decades – no way! I mean, can it go on four more years.Read More »
Articles by Schiff Gold
Investors poured into safe-havens last week as the coronavirus continued to create worry about the global economy. Bond yields hit all-time lows with the yield on the 30-year US Treasury dropping below 2%. Meanwhile, stocks tumbled Friday, with every major index showing losses. The Dow was down 227 points.Peter Schiff talked about what’s going on in the markets in his podcast on Friday. He said despite what the mainstream is telling us, the bond market is a great big bubble.Peter said that stock prices would have dropped even further had it not been for the rise in the bond market helping to support the valuation of US stocks. The lower interest rates fall, the higher everybody can pretend the fair value of the US stock market is. Peter reiterated that it’s not just about safe-havens.Read More »
The interwebs are a strange place. We can learn about virtually anything with a few keystrokes. We have all kinds of information right at our fingertips.Unfortunately, a lot of it is utter BS.For instance, there was a video that went viral that made some people scared of gold.Back in the day, the theory was that people weren’t dumb. The problem was a lack of access to information. The internet ostensibly solves that problem. But I think the internet is actually making dumb people dumber.The problem is that there are a lot of people out there who believe pretty much anything they hear, no matter how absurd. They have no ability to think critically and distinguish BS from truth. These were the people that led PT Barnum to say, “There’s a sucker born every minute.” (On a quick side-note,Read More »
Gold broke out this week. The yellow metal pushed through the $1,600 level and continued to climb. Conventional wisdom tells us this is all about safe-haven buying due to fear that the coronavirus will stunt global economic growth. That is certainly a factor. But could there be more to it than that? On this week’s Friday Gold Wrap podcast, host Mike Maharrey talks about what he thinks is at the root of this gold breakout. He also gets into the subject of inflation. There’s more out there than the standard government numbers tell us.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 economicRead More »
Which will outperform in 2020? Gold? Or Equities?Peter Schiff joined a moderated debate on the subject at the Orlando Money Show. Peter teamed up with Rick Rule to argue for gold, against Louis Navellier and Jeffrey Saut, who contend the stock market is still the place to be. Mark Skousen moderated the debate. [embedded content]Interestingly, even Navellier admitted that the stock market is getting “a little bubbly.” He said it looks like ’99 all over again – the year before the dot-com bubble popped. But he still thinks there’s money to be made.Skousen set up the gold argument by bringing up the fact Mark Mobius says buy gold at any price because interest rates are so low and gold is relatively cheap.Rule said the gold vs. stocks debate is a little bit silly. It’s not necessarily oneRead More »
In his most recent podcast, Peter Schiff talked about coronavirus and the impact that it is having on the markets.Earlier this month, Peter said he thought the virus was just an excuse for stock market woes. At the time he believed the market was poised to fall anyway. But as it turns out, coronavirus has actually helped the US stock market because it has led central banks to pump even more liquidity into the world financial system.All this means more liquidity — central banks easing. In fact, that is exactly what has already happened, except the new easing is taking place, for now, outside the United States, particularly in China.”[embedded content]Although the new money is primarily being created in China, it is flowing into dollars — the dollar index is up — and into US stocks. LastRead More »
Peter Schiff recently appeared on with Mark Bunting to talk about the stock market bubble. He said it’s the same type of bubble as 2008, only bigger.The source is the same. It’s artificially low interest rates. It’s quantitative easing. The central bank, the Federal Reserve, is responsible for the rise in the stock market.”Peter pointed out that in 2019, corporate earnings actually declined slightly even as the stock market was up some 30% and making record highs.That’s all the Fed. If we really had a good economy, you would have expected corporate earnings to reflect that. But they didn’t.”[embedded content]Bunting noted that one of the Fed governors admitted that the Fed’s interjection of liquidity in the money markets was a sort of “QE light.” Peter said it’s not QE light.It’sRead More »
Silver will shine in 2020 with higher prices supported by expanded physical investment and industrial demand.This is the projection of the Silver Institute in its 2020 Market Forecast.The Silver Institute believes that macroeconomic and geopolitical conditions will remain broadly supportive for precious metals, encouraging investors to stay net buyers of silver overall, a development that should lift silver prices higher this year. Additionally, we see continued growth in physical silver investment, and forecast silver’s use as an industrial metal will rise in 2020.”Last year, the price of silver was up about 4%. This marked the first increase in four years. The price was underpinned by loose central bank monetary policy. According to the Silver Institute, the silver bull market willRead More »
Subprime auto loan delinquencies have exploded, taking the overall delinquency rate to Financial Crisis levels. But the economy is supposedly great. What is causing this spike in delinquencies?According to the latest data released by the New York Fed, serious delinquencies (90 days or more past due) surged by 15.5% in the fourth quarter of 2019 to a record high of $66 billion.Seriously delinquent auto loans now make up 4.94% of the record $1.33 trillion in total loans and leases outstanding. This may not sound like a huge number, but it is higher than the delinquency rate was in Q3 2010 when the auto industry was collapsing in the midst of the worst unemployment crisis since the Great Depression. The delinquency rate peaked in the fourth quarter of 2010 at 5,27% of outstanding loans.Read More »
A bill introduced in the Wyoming House would establish a precious metals bullion depository in the state. It would not only create a safe place to store precious metals; it could also facilitate the everyday use of gold and silver in financial transactions in Wyoming and set the stage to undermine the Federal Reserve’s monopoly on money.A coalition of nine Republicans introduced HB198 on Feb. 11. The legislation would create the Wyoming Bullion Depository.“The depository is established to serve as the repository for and to safeguard and administer bullion and specie that may be transferred to or otherwise acquired by the state or an agency, political subdivision or another instrumentality of the state.”The use of the Wyoming depository would not be limited to state agencies.Read More »
The US government posted another massive deficit to start out calendar-year 2020.According to the latest data released by the US Treasury Department, Uncle Sam spent $32.6 billion more than it took in last month. That compares with an $8.7 billion surplus in January 2019. Analysts had projected an $11.5 billion shortfall in January.That brings the total deficit in FY2020 to $389.2 billion. So far, the deficit in fiscal 2020 is about $79 billion bigger than it was at this point in FY2019.According to the Congressional Budget Office, the federal budget shortfall will hit $1.02 trillion in FY 2020 and rise into the foreseeable future. The CBO warns that the ballooning national debt poses a “significant risk” to the economy and financial system.Overspending continues to drive theRead More »
Psst… It’s Valentine’s Day.
You forgot, didn’t you?
Well, if Valentine’s Day did slip your mind, and you happened to stumble across this post early enough, you’re welcome. Now get out there before it’s too late.
And if it too late, well, I’m sorry for your pain. Hope the couch is comfy.
Of course, I’m assuming you have a Valentine to shop for. The easiest way to avoid the pressure of the holiday is to just stay single. But that’s a subject for a different Fun on Friday.
So, here’s the question: now that I’ve reminded you, what do you plan to buy your Valentine? I know you have something in the cards because despite grousing about the holiday, Americans spend a lot of money on it – somewhere in the neighborhood of $20 billion.
Yes. Billion. With a B.
Now, you could just go with a
Jerome Powell went to Capitol Hill this week. During his testimony before a congressional committee, the Fed chair insisted, “There is nothing about this economy that is out of kilter or imbalanced.” In this episode of the Friday Gold Wrap Podcast, host Mike Maharrey takes issue with Powell’s assessment and points out some things that are, in fact, way out of kilter.” He also touches on coronavirus and the markets, consumer debt, and Donald Trump.
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
Last week, Peter Schiff gave a speech at the Orlando Money Show and made the case that all the hype about the greatest economy in history is just that – hype. Nobody should be taking credit for the economy. We should be asking who is to blame.
During his State of the Union Address, President Trump talked up the economy. He said we are now experiencing an economic boom, unlike anything the world has ever seen. But Peter said we have seen it before — just before he was elected during Obama’s second term. There’s basically no substantive difference, Peter said to a smattering of boos.
But Peter has facts to back up his assertion. For one thing, the budget and trade deficits are bigger now than they were when Trump was elected.
If America’s economy was in decay because of trade deficits
As you may know, several years ago, Peter Schiff relocated to Puerto Rico. Have you ever wondered why? What are the advantages? And what can his move teach us more generally about economics and politics?
Peter recently appeared on the Puerto Rico ICON Podcast and answers some of those questions.
The primary reason Peter moved was the tax benefits of operating a business in Puerto Rico. He’s not subject to federal income tax, which is a huge economic incentive. As Peter put it, the more expensive they make it to stay in the US, the more attractive they make it relocate to Puerto Rico.
Peter discussed the possibility of Puerto Rico statehood. He said he thinks it’s a bad idea. For one thing, it would take on part of the federal government’s $23 trillion debt.
During the Vancouver Resource Investment Conference, Peter Schiff joined Frank Holmes (US Global), Rick Rule (Sprott US), and Grant Williams (Vulpes Investment Management) on the “Ultimate Gold Panel. Daniela Cambone moderated the discussion.
Gold charted its best year since 2010 last year. The price increased by 18.4% in dollar terms. The yellow metal also reached record highs in every G10 currency except the dollar and the Swiss franc. Can this bull-run can continue into 2020?
Peter noted that he was on a gold panel the year before and he was the only person who thought gold was going to go up. Many were predicting the yellow metal would fall back to $1,000.
I thought that was very improbable. And now you’re throwing around could it go back down to $1,300. Look, it’s possible, but
Americans are driving the US economy along with borrowed money. The question is how much longer can it last?
Consumer debt surged once again in December as Americans charged up their credit cards for the holidays. Total consumer credit grew by $22.1 billion in December, according to the latest data released by the Federal Reserve. That represents an annual growth rate of 6.3%. Total consumer debt now stands at a record $4.197 trillion.
The Fed consumer debt figures include credit card debt, student loans and auto loans, but do not factor in mortgage debt.
A big jump in credit card balances drove the big rise in consumer debt in December. Revolving credit was up 14%. Americans have run up nearly $1.1 trillion on their plastic. The big jump in credit card debt reversed a trend of
ETF gold holding reached another record high in January, according to the latest data from the World Gold Council.
Gold-backed funds added 61.7 tons of gold last month, boosting holdings to an all-time high of 2,947 tons. This continues a trend we saw in 2019 when gold holdings in ETFs grew 19% and eclipsed all-time highs.
With the price of gold increasing by nearly 5% in dollar terms in January, ETF assets under management grew by 8%. Total AUM is now less than 2% away from the all-time highs of 2012 when the price of gold was 11% higher.
European funds saw the greatest growth, adding 33 tons of the yellow metal in January. British funds led the way as investors continue to flock to gold as a safe-haven hedge in the midst of Brexit. UK-based funds continue to gain regional and
Macy’s department store has announced plans to close 125 stores and cut around 2,000 corporate employees. Along with the store closures, the company will shutter its Cincinnati headquarters and tech offices in San Francisco.
Even with the cuts, sales projections for the next three years “look abysmal.” According to CNBC, same-store sales, on an owned plus licensed basis, are forecast to be down 1% to flat.
“The changes we are making are deep and impact every area of the business, but they are necessary. I know we will come out of this transition stronger, more agile and better fit to compete in today’s retail environment,” Macy’s CEO Jeff Gennette said in a statement.
The woes at Macy’s are a symptom of deeper problems in the retail sector. This is not good news for the broader US
This week I went to the SchiffGold office.
Now, you might think, so? I mean, you run the SchiffGold website. What’s the big deal?
Well, it was a big deal because this was the first time I’ve ever actually been to the office. And it’s the first time I’ve met the SchiffGold crew in person.
When you think about it, this reveals what an amazing world we live in. I mean, when I was flying up, I logged into high-speed internet on an airplane at 30,000 feet. I texted my wife and said, “What an amazing world we live in.”I can live in Florida and work with guys in New York City every single day without actually having to be in New York City.
And this is a good thing because I’m pretty sure I couldn’t live in New York City.
Don’t get me wrong, I like the city. I love the fact that I can get
Gold took a hit on Tuesday but held a key support level and rebounded as the week went on, even as stocks set new records. Why does gold continue to keep showing strength even with all the headwinds? Is it just coronavirus? Or is something else going on? Host Mike Maharrey talks about it in this week’s Friday Gold Wrap podcast.
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.
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What About the
Last October, the Federal Reserve relaunched quantitative easing. Of course, Fed Chairman Jerome Powell insists it’s quantitative easing. But as Peter Schiff pointed out in a recent tweet, that debate is really just semantics.
The argument over whether the current Fed balance sheet expansion constitutes QE is pointless. QE was always just a euphemism for debt monetization. The Fed monetized debt in the past, its monetizing more debt in the present, and it will monetize even more debt in the future!”
A close look at what is going on at the Treasury Department and the Fed makes it pretty clear the central bank is, in fact, monetizing the debt.
Last month, the Treasury Department announced it will begin issuing 20-year Treasury bonds in order to help fund the ever-growing deficits.
The silver-gold ratio has ticked back up to historically high levels of late.As I write this article, the ratio stands at just over 88:1. That means it takes 88 ounces of silver to buy an ounce of gold. To put that into perspective, the average in the modern era has been between 40:1 and 50:1.In simple terms, historically, silver is extremely underpriced compared to gold.Last summer, the ratio climbed to nearly 93:1 as gold rallied. Silver closed the gap in the fall and the ratio dropped into the low 80s’ to one. But in recent weeks, we’ve seen the gap widening once again.In 2019, the silver-gold ratio averaged 86:1. That ranks in the top 2% all-time, dating back to 1687. Only two years in the era since the US government unpegged the dollar from gold have seen higher ratios – 1991 andRead More »
More and more Americans are struggling to pay their rent.According to a report from the Joint Center for Housing Studies of Harvard University, one in four renters are paying more than half their income on housing. This equates to 10.9 million renters.And millions of additional renters are categorized as cost-burdened, meaning they pay 30% or more of their income on rent.More and more of these over-burdened renters come from the ranks of middle-income earners. Nearly 56% of renters earning between $30,000 and $45,000 a year were cost-burdened as of 2018, up 5.4 percentage points from 2011. Among those in the $45,000 to $75,000 annual income earners, the share of overburdened increased 4.3 percentage points to 27%.Why are so many Americans struggle with rent when this is the greatestRead More »
Corporate debt has blown through the roof over the last several years. So much so that the Federal Reserve has issued warnings about the increasing levels of corporate indebtedness.Borrowing by businesses is historically high relative to gross domestic product (GDP), with the most rapid increases in debt concentrated among the riskiest firms amid weak credit standards.”But as Brandon Smith of alt-market.com noted in an article published at LewRockwell.com, this is a subject the mainstream media “seems specifically determined to avoid discussing these days when it comes to the economy.Smith called corporate debt “the key pillar of the false economy.”It has been utilized time and time again to keep the Everything Bubble from completely deflating, however, the fundamentals are starting toRead More »
Those peddling the narrative that the US economy is great keep pointing to the stock market. Indeed, stocks have continued to push higher, setting records along the way. But Peter Schiff has been saying that stocks aren’t being driven higher by a great economy. In a recent interview on , Peter said that if you look at the economic fundamentals, stocks should be coming down.The only thing really supporting it is the Federal Reserve and all the money they’re printing with their stealth QE program, although it’s not stealth really. Everybody knows they’re doing it. They just refuse to admit it. But there’re no earnings behind this. There’s no strong economy behind this. This is an inflation-driven bubble, but the air should be coming out.”A recent article at makes the same point.Since theRead More »
The Dow Jones fell 603 points on Friday and was down about 1% through the first month of 2020. As Peter Schiff pointed out on his latest podcast, if the old saying “so goes January, so goes the year” turns out to be the case, 2020 could longest bull market in history could be at its end.The S&P 500 also had a big 1.8% drop on Friday and is slightly in the red in 2020. The Nasdaq fell Friday, but remains the only index that is positive on the year. The Russell 2000 is down about 3.3% on the year.[embedded content]As Peter has pointed out, the Russell 2000 is the only index that did not set a record high in 2019.That is the index that is most sensitive to the US economy, and despite all the talk about how great the US economy is, that is the index that is the weakest.”The mainstreamRead More »
In the most recent Friday Gold Wrap podcast, Mike Maharrey talked about the fact that the Federal Reserve has increasingly engaged in more and more extraordinary monetary policy. As he put it, extreme has become the norm. Despite what pundits insist is a “great” economy, interest rates are extremely low by historical standards and the Fed is engaging in quantitative easing to the tune of $60 billion a month.While stock markets continue to make record highs and the economy continues to grow, the question is how long can this last?Peter Schiff has been saying that this is an inflation-driven bubble and it’s going to pop. But even Peter admits that the Fed has managed to keep the bubbles inflated a lot longer than he expected it could.Some in the mainstream have suggested that the era ofRead More »
If some guy was trying to talk you into buying gold, would the fact he was an ATF agent make you more comfortable with the transaction?I’m just going to say upfront, my answer is an emphatic no.Maybe it’s just me, but “federal agent” doesn’t inspire a sense of trust. In fact, if some guy came along selling gold with an ATF badge around his neck, I would immediately assume it was some kind of sting. And I don’t know about you, but I don’t want to go to jail.But apparently, my distrust of the Feds isn’t necessarily widespread.A New Jersey man was busted a charged with impersonating an agent and bringing counterfeit coins and bars into the US.According to an NJ.com report, Jonathan A. Kirschner pleaded guilty to the charges. The fact that he was caught with a fake ATF badge and fake goldRead More »
The Federal Reserve held its first FOMC meeting of 2020. It was mostly met with yawns as the Fed held rates steady, and despite a somewhat dovish tone, indicated that it probably wouldn’t make any moves on interest rates this year. We’ve grown so used to low interest rates that it barely registers that the Fed is actually engaged in extreme monetary policy. Extreme has become the new normal. In this week’s Friday Gold Wrap podcast, host Mike Maharrey talks about it. He also touches on the Q4 GDP report and some interesting gold supply and demand trends.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 ofRead More »