Tuesday , November 24 2020
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Stealing Our Savings: SchiffGold Friday Gold Wrap Nov. 20, 2020

4 days ago

The stock market continues to climb on coronavirus vaccine hopes. But why should it? After all, it didn’t sell off because of the pandemic. It’s at record levels despite COVID-19. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey explains why this really isn’t about a vaccine. He also talks about one of the pernicious effects of this super-loose monetary policy – the theft of our savings.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 as it relates to gold and silver, along with some insightful

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Inflation Is Daylight Robbery

5 days ago

As central banks continue to inject trillions of dollars created out of thin air into the financial system, the mainstream generally sits backs and shrugs. But a few lonely voices in the wilderness continue to warn about the potential for price inflation and its nefarious effects on the average person.In a recent podcast, Peter Schiff warned that prices are going to surge because “the Fed is not going to take away the punch bowl.”Inflation is the elephant in the living room that nobody wants to acknowledge that they see. But it’s there. It’s staring us in the face. And it’s going to become more and more obvious as 2021 really begins to play out.”In fact, when defined correctly, we already have massive levels of inflation. But according to official CPI numbers, it hasn’t shown up in

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The Fed Now Holds a Record Percentage of US Debt

5 days ago

The US government has borrowed $4.2 trillion in the last 12 months, pushing the total national debt to over $27 trillion. In order for Uncle Sam to borrow, somebody has to lend. So, who is buying all of these government bonds?Foreign and domestic investors, commercial banks and US government entities all buy US debt, but increasingly, the Federal Reserve is backstopping the market and making this borrowing binge possible.In Q3, the Fed bought $240 billion in US Treasuries. That brought its total Treasury holdings to $4.44 trillion. The central bank now holds a record 16.5% of the US debt load.In the last 12 months, the Fed has doubled its holdings of Treasuries, adding a staggering $2.4 trillion in US government bonds to its balance sheet – most of that since March. The Fed’s total

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Silver Investment Demand Expected to Hit Five-Year High

6 days ago

Physical silver investment is expected to surge by 27% this year, according to the latest data released by the Silver Institute.Demand for investment silver is projected to come in at 236.8 million ounces in 2020. That would mark a 5-year high.Silver coin and silver bar sales in the US have driven the big gains in investment demand. Retails sales are projected to rise by 62% on the year. This will more than offset the drop in silver investment demand in India – the world’s second-largest silver market.The rising price of silver has helped drive investment demand. As of Nov. 13, the white metal was up 38% on the year.Global holdings of silver in silver-backed ETFs have also surged this year, pushing past 1 billion ounces for the first time ever. Year-to-date gains through Nov. 13 reached

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Peter Schiff: We’ve Sold Our Monetary Souls to the Devil

6 days ago

Stocks continue to surge upward thanks to optimism about a coronavirus vaccine. Of course, stocks have been on a bull run ever since their big March drop at the beginning of the pandemic. This led Peter Schiff asks a poignant question during his podcast: if COVID-19 didn’t hurt the stock market, why should a vaccine help?This week Moderna announced success in a coronavirus vaccine trial, adding to the optimism that an effective vaccine could be out soon. Stocks were up and gold sold off, but not to the extent that we saw with the Pfizer announcement last week. Peter asked, “Why is the market even rallying on a COVID vaccine?”I know it is good news. If we get a COVID vaccine, then more people can go back to work. More people will feel comfortable traveling and doing all sorts of things

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The Fed Has No Way Out

7 days ago

We have argued that the Federal Reserve has no exit strategy from this extraordinary monetary policy. In fact, it never could extricate itself from the extraordinary monetary policy it launched during the Great Recession. Today, we’re merely witnessing the same policy on hyperdrive. And there is still no way out.After blowing up its balance sheet to over $4 trillion during the Great Recession, the Fed tried to pull back. Through quantitative tightening, the Fed managed to get it down to just over $3.7 trillion before the stock market tanked in late 2018 and the central bank abandoned its plans to normalize monetary policy. At that point, it ended balance sheet reduction and dropped interest rates three times the following year. Not only that, it relaunched quantitative easing,

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US Government Runs Biggest October Budget Deficit in History

8 days ago

If you thought maybe the federal government would try to rein in the spending after running a recorded budget deficit of $3.13 trillion in fiscal 2020, you were sorely disappointed. Uncle Sam has not kicked his spending habit.October was the first month of FY 2021 and the federal government kicked off the year with a $284.1 billion budget deficit, according to the latest Monthly Treasury Statement. It was the largest October budget shortfall in American history.The federal government spent $522 billion last month. That was up 37.3% over October 2019.Meanwhile, government receipts were down 3.2% compared to last year.There is a bit of a caveat. With Nov. 1 falling on the weekend, the Treasury pushed outlays for military active duty and retirement, veterans’ benefits, Supplemental

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Peter Schiff: Can America Really Take a Paid Vacation Funded by Uncle Sam?

8 days ago

Michael Osterholm is one of the doctors advising Joe Biden on the coronavirus. He has said the US needs to impose a complete lockdown for four to six weeks. Osterholm claims this won’t be a problem because the US government can just pay everybody. In other words, Uncle Sam would give every American a paid vacation.In his podcast, Peter Schiff explained why this proposal is ridiculous.Osterholm has actually suggested that the lockdown would be good for the economy in the long run.Shutting down the economy for four to six weeks, according to this guy, would really let us jumpstart the economy because we’d really eradicate the disease — even though there’s really no proof that a lockdown is really going to do anything. But what this genius is proposing is that, well, it’s not really going

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There’s No Immunity from the Fed: SchiffGold Friday Gold Wrap Nov. 13, 2020

11 days ago

Gold and silver sold off big and the Dow surged Monday on the announcement the Pfizer had successful coronavirus vaccine trials. But Friday Gold Wrap host Mike Maharrey says investors should maybe tap the brakes on thinking that a coronavirus vaccine is a cure-all. In this episode, the looks a little deeper at the long-term ramifications of a vaccine. He also breaks down the newest budget deficit numbers.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 as it relates to gold and silver, along with some insightful commentary.LISTEN[embedded

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Could the Dollar Price of Gold Go to Infinity?

12 days ago

This summer, Peter Schiff and Jim Rickards discussed the possibility of $15,000 gold. In a recent interview. economist Rafi Farber took this line of thinking to the next level, arguing the dollar price of gold could eventually hit infinity – meaning simply that the value of the dollar will go to zero.During the interview featuring Schiff and Rickards, Peter said the world is ultimately going to sever its relationship with the dollar. It will go off the dollar standard and back on the gold standard.And I think this is going to be a more precipitous drop in the dollar’s value than it was in the 70s, so we could see something equally impressive in the price of gold.”Rickards was willing to put a number on it. He projected $15,000 gold by 2025. He extrapolated some data to make his point.

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American Retirees Drowning in Debt

12 days ago

American retirees are buried in debt.Between 1999 and 2019, the total debt burden for Americans over age 70 increased by 543% and totaled $1.1 trillion according to data compiled by the Federal Reserve Bank of New York. Debt grew by 471% over the same period for those in their 60s and totaled $2.14 trillion at the end of last year. Retirement often turns out to be more expensive than planned. As a result, retirees turn to credit cards to make ends meet.Surprisingly, many seniors are also burdened by student loan debt. Over the last few years, Americans in the age range between 60-69 saw student loan debt increase by 71.5%. Some took out student loans later in life in order to get advanced degrees, but many took on debt to help put their children through school.It’s easy to brush off

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Gold Is a Lifeline for Many Indians During Pandemic

13 days ago

Gold has helped Indians weather the economic storm caused by the coronavirus pandemic.The government response to COVID-19 has ravaged the Indian economy. As a result, many banks are reluctant to extend credit due to fear of defaults. In this tight lending environment, many Indians are using their stashes of gold to secure loans.Using gold as collateral for loans has a long history in India. For generations, farming communities and rural households used gold as a means of financing, often pledging it as collateral to raise funds to plant the following year’s crops. Today, Indians in urban settings often use gold loans to meet expenditures for healthcare, business, education, and marriage.According to a recent report by the World Gold Council, demand for gold loans, both through banks and

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Student Loan Debt Continues Its Upward Climb

13 days ago

Student loan debt continues to surge despite falling college enrollment.In Q3, student loan balances rose by $23 billion from the second quarter, according to the latest Federal Reserve data. Forty-five million Americans now owe $1.7 trillion in student loan debt. Total outstanding student loan balances have surged by $54 billion year-on-year.Enrollment in colleges and universities dropped by over 231,000 students to a total of 17.97 million between 2018 and 2019. The drop in enrollment between those two years continued a trend we’ve seen since university enrollment peaked in 2011. That year, 20.14 million students were enrolled in colleges and universities. Since then, enrollment has dropped by 10.8%.One of the reasons student loan debt continues to increase despite falling college

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Fed Issues Warning About High Debt and Overvalued Asset Prices

14 days ago

While the markets were giddy about the prospects of a coronavirus vaccine, the Federal Reserve was warning of more economic chaos on the horizon.The Fed released its biannual Financial Stability Report Monday. The report warned we could see a wave of defaults and “significant declines” in asset prices in the near future.The biggest concern outlined by the Fed is the surging levels of debt in the economy. “As many households continue to struggle, loan defaults may rise, leading to material losses,” the Fed report warned.It also expressed concern about the rising levels of business debt.Debt owed by businesses, which was already historically high relative to gross domestic product (GDP) before the pandemic, has risen sharply as businesses increased borrowing to weather the period of weak

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Peter Schiff: There Is No Vaccine For What Ails the Economy

14 days ago

Stocks soared, and gold and silver sold off Monday after Pfizer announced success in stage III coronavirus vaccine trials.During his podcast, Peter Schiff talked about the crazy day in the markets and suggested we might want to tap the brakes when it comes to the excitement about a COVID vaccine because there is no vaccine for what actually ails the economy.Gold suffered its biggest decline since June 2013, falling nearly $100 at one point. Despite the selloff, gold did manage to hold support at $1,850 and pushed back to about $1,865 by the end of the day. Silver also dropped, losing 5.5%.Meanwhile, the Dow gained 834 points while the NASDAQ sold off into the close, primarily due to investors dumping the “stay-at-home” stocks such as Netflix and Zoom. The Dow also sold off from its

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ETF Gold Holdings Rise for 11th Straight Month, Set New Record

16 days ago

Global ETF gold holdings rose for the 11th straight month in October, setting yet another new record at 3,899 tons valued at $235 billion.Gold-backed ETFs added another 20.3 tons in October, bringing the total inflows for 2020 to a single-year record of 1,022 tons, according to the latest data from the World Gold Council. The previous yearly inflow record was 646 tons set back in 2009.Eleven straight months of gold inflows also tied the record for consecutive positive months set in April 2006.European funds led the way in October with an increase in gold holding of 20.2 tons. North American funds had inflows of 1.8 tons. Asian funds saw their gold holdings increase by 1.1 tons. Other regions, including Australia, saw outflows of 2.8 tons.The World Gold Council sees investment demand for

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Peter Schiff: The Inflation Tax Will Decimate Many Portfolios

16 days ago

Last week, Peter Schiff appeared on The Claman Countdown on along with Mark Matson, founder and CEO of Matson Money, to talk about where to invest with this overpriced stock market.Peter said the big danger is inflation and it will decimate a lot of portfolios.Peter called the big gains in the stock market in the wake of the election a “head fake.”I think the market is substantially overvalued and it is headed lower.”[embedded content]He also pointed out that not every segment of the market boomed during the post-election rally. The regional bank index sold off nearly 7%. And the Russell 2000 was negative.Peter noted that it wasn’t all good news for the Democrats given that the Senate will likely stay in Republican hands.But unfortunately, that’s not enough to save the economy from

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Meanwhile Back at the Fed: SchiffGold Friday Gold Wrap Nov. 6, 2020

18 days ago

All eyes have been on the presidential election this week. It’s still not clear who will win – although it’s looking more like a Biden victory. Meanwhile, the Federal Reserve held its November meeting this week. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey offers some analysis of both the election and the Fed meeting. And he argues that what’s going on over at the Eccles Building might be more significant than who ends up in the White House.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 as it relates to gold and

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Russia’s Second-Largest Bank Betting on Gold

19 days ago

Russia’s second-largest bank is betting on gold to boost profits in the midst of the COVID-19 pandemic and global economic slowdown.According to a report, VTB Bank has prioritized gold trading in addition to lending to gold mining companies. VTB Bank First Deputy Chairman Yuri Soloviev said precious metals mining – gold, along with silver, platinum and palladium – is one of the few sectors to benefit from the pandemic. And he expects strong support to continue as central banks keep on creating money and pumping it into the global economy.In fact, the Federal Reserve has already promised it will keep interest rates at zero for years to come. It will continue QE infinity. It has made clear it plans to ignore any inflation threat. And there is no exit strategy from this extraordinary

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Peter Schiff: People Should Be Buying Gold as a Response to the Election

19 days ago

It looks like Joe Biden will ultimately win the presidential election, although it will likely be weeks before all of the official votes are in and the legal wrangling could go on even longer. One thing that is clear is that the polls were horribly wrong. They were projecting a Biden landslide. If Trump did lose, it was barely.In his podcast, Peter Schiff offered some post-election analysis and said investors are as clueless as the pollsters.The projected “Blue Wave” never materialized. It not only looks like the GOP will maintain control of the Senate, they also picked up seats in the House. As Peter put it, the Blue Wave was barely a splash.Joe Biden barely squeaked in with the narrowest of margins, assuming that the challenges don’t hold up.”[embedded content]Before the election,

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More Bad News for the Labor Market

20 days ago

More bad news for the labor market.Nearly 1-in-10 companies are planning layoffs in the next three months. That’s on top of the more than a quarter of US companies that have already let workers go in Q4. Last month, companies announced tens of thousands of layoffs. Disney announced plans to lay off 28,000 employees. US airlines are poised to let up to 50,000 workers go. Allstate plans to cut around 3,000 jobs. Royal Dutch Shell will eliminate around 9,000 jobs globally. German auto-parts supplier Continental AG announced it will cut or shift some 30,000 jobs worldwide. Halliburton plans to eliminate an entire layer of management. Marathon Oil is set to launch round two of job cuts, shedding another 2,000 jobs. And Goldman Sachs said it will cut its workforce by about 400 jobs.But that’s

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Silver Investment Demand Surges and Other Silver News

21 days ago

Silver investment demand surged through the first three quarters of 2020, according to the latest issue of published by the Silver Institute.Global silver Exchange Traded Product (ETP) holdings rose by 297 million ounces through the third quarter of this year, nearly tripling the growth in the comparable period last year.Global ETP holdings continue on an upward trajectory in the 4th quarter, according to the report. As of Oct. 23, they were over 1.045 billion ounces, slightly off the high registered in August.Demand for physical silver was also strong through Q3. The demand for silver bullion coins was up 65%. Silver bar demand rose sharply through the first three quarters of the year as well.There were also indications of a partial recovery in global industrial demand during the

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The Debt Monster Is Loose

22 days ago

The debt monster is loose.S&P Global Ratings projects the global debt-to-GDP level will swell to a record 265% this year. It also expects insolvencies and defaults to rise to levels not seen since the 2009 crisis. Higher leverage and “a more challenging operating environment” has led S&P Global Ratings to downgrade 22% of corporate and sovereign debt issuers globally — “particularly speculative-grade borrowers and those suffering most from COVID19’s economic effects.”According to the report, default rates could double by mid-2021.Corporate bankruptcies are already surging in the US and many overleveraged small businesses are simply shutting down.  A total of 509 companies had gone bankrupt this year as of Oct. 4, exceeding the number of filings during any comparable period since 2010.A

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Peter Schiff: The Worst Pre-Election Stock Market Ever

22 days ago

The US stock market is coming off its worst week since March. It was also the worst pre-election stock market in history. In his latest podcast, Peter talked about the market, the election and what’s likely ahead.A weak stock market right before election day doesn’t bode well for President Trump’s reelection, given that he’s touted the stock market as his great accomplishment. Peter has said he doesn’t think Trump will win and that the stock market would ultimately sell off on the reality of a Biden presidency – that it would be “buy the rumor, sell the fact.”Well, apparently they’re not waiting for the fact and they’re selling on the rumors. They bought on the rumor Biden was going to win and now they’re selling on the rumor that he’s going to win, because a Biden victory is not good

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GDP Reality Check: SchiffGold Friday Gold Wrap Oct. 30, 2020

25 days ago

Gold and silver have had a tough week. So have stocks. In a lot of ways, it looked like March all over again, with worries about increasing COVID-19 cases and new lockdowns.  But then we got the Q3 GDP number and that injected a dose of optimism. In this episode of the Friday Gold Wrap podcast, host Mike Maharrey talks about the dynamics in the markets and provides a little reality check on that big GDP number.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 as it relates to gold and silver, along with some insightful

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Peter Schiff: The Fed Has Never Been Right

26 days ago

Peter Schiff delivered a key-note speech at the Virtual Investor Day Conference. He walked through the history of the Federal Reserve’s monetary policy over the last several decades and explained the inevitable outcome. Peter’s recap of Fed history leads you to an undeniable conclusion: the Federal Reserve has never been right. And it has set us up for an even bigger crisis.Peter opened his talk saying that he thinks we are entering the final chapter of the book Alan Greenspan started to write.And I have a feeling he had an understanding of how badly it was going to end. But unfortunately, a lot of people who have been adding pages or chapters to that book since Greenspan resigned really don’t have any idea what’s coming.”[embedded content]Greenspan started the book by unleashing the

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Millions of Americans Struggling to Pay Their Bills

27 days ago

We read a lot about the big-picture impacts of the economic meltdown caused by the government response to the coronavirus pandemic. We hear about the millions thrown out of work, the surge in corporate bankruptcies and small businesses shutting down, and the specter of surging inflation. But how has all of this impacted the average American?In a nutshell, it has been devastating.Data gathered by doxoINSIGHTS shows that more than half of all Americans (57%) have seen a reduction in income and 42% have skipped paying one or more bills since the COVID-19 pandemic started.No wonder consumer confidence dipped this month as Americans soldier on with little expectation of economic improvement and many benefit programs set to expire by the end of the year. The Conference Board reported its

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Inflation Is Here

27 days ago

The mainstream isn’t worried about inflation. In fact, we’re told inflation is muted. And that’s true, at least by some measures. We haven’t seen the rising consumer price index (CPI) you might expect as central banks inject trillions of dollars created out of thin air into the economy. But just because government numbers don’t reflect it  – yet –  that doesn’t mean there isn’t inflation. In fact, defined correctly, increasing the money supply  inflation. And we certainly have plenty of that.The fact is inflation is here and it will almost certainly find its way to consumer prices eventually. Peter Schiff has been saying that we can’t avoid the inflationary impact of money printing forever. During an interview on RT last month, he said that ultimately the price of everything is going up

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Peter Schiff: Sooner or Later Every Bubble Finds Its Pin

28 days ago

Stocks sold off Monday as markets fretted over the lack of progress on stimulus and a rise in COVID-19 cases. In his podcast, Peter talked about the sell-off and the political dynamics driving the markets right now. He also drove down to a question nobody seems to want to grapple with: why are the markets and the economy so dependent on and desperate for stimulus?The Dow was down 650 points on Monday. A 300 point rally off the interday low kept the carnage from being even worse. The Nasdaq fell 189 points and the S&P 500 lost 1.86%. It was the worst day on Wall Street since mid-September. Two factors drove stocks lower – the lack of progress on a stimulus deal and a surge in COVID-19 cases.The selloff could have been worse if it wasn’t for a big move out of recovery stocks into the

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Who Will Fix The National Debt? It Looks Like Nobody

October 25, 2020

The FY2020 budget deficit came in at $3.13 trillion. At some point, the US government will have to reckon with the debt and spending. But according to recent analysis from the nonpartisan Committee for a Responsible Budget, neither Trump nor Biden appear prepared to do so. In fact, its analysis shows Trump would only be slightly better than Biden when it comes to spending and debt.During the 2016 presidential campaign, Trump promised to deal with the skyrocketing national debt. In fact, he said he could take care of it “fairly quickly.” But during his four years in office, he didn’t even pay lip-service to reining in spending, instead, approving bigger outlays for both military and domestic spending.Many will blame the coronavirus for the surging deficits. Pandemic-related spending

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