Friday , May 29 2020
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Articles by Schiff Gold

Nearly Half of Small Business Owners Expect to Close Down Permanently

1 day ago

The economy was booming. The stock market was setting records. Then coronavirus came along and governments shut things down to minimize the pandemic. That led to massive layoffs and a nasty recession. But once states open up, things will spring back to life and the economy will go back to being great again.That’s the mainstream narrative. But it’s not based on reality.In truth, the economy was a Fed-induced bubble before the pandemic. The central bank has managed to reinflate the stock market bubble despite the economic destruction, but it is nothing but a Fed-induced sugar high. And the economy won’t likely rebound quickly, even after things open up.There are all kinds of reasons to doubt the quick economic recovery narrative. We’ve reported on the number of over-leveraged zombie

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Peter Schiff: We’re on a Fed-Induced Sugar High

1 day ago

Sometimes you need to look back at where we come from to understand where you’re going. Peter Schiff does just that in his May 27 podcast. He analyzes the stock market surge of last year and concludes the mainstream might be a little over-optimistic on where we’re heading. The recent surge in stocks isn’t based on economic reality. The economic reality is we’re an insolvent zombie nation. We’re just on a giant Fed-induced sugar high.[embedded content]The US stock market came out of the Memorial Day weekend with back-to-back big gains, with the Dow closing over 500 points up both Tuesday and Wednesday.Stocks are rallying on the expectation of a relatively quick economic recovery as states lift coronavirus restrictions. Markets are also already pricing in a coronavirus vaccine. Peter said

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Fed’s Extreme Measures Are a Very Bad Thing

2 days ago

During a recent  interview, Federal Reserve Chairman Jerome Powell said there is “no limit” to what the Fed can do. Indeed, the central bank has pulled out all the stops.But while the actions of the central bank are extreme, we’ve seen them operate out of this playbook before, if not at this level.The Federal Reserve and the US government are rerunning the exact same policies they turned to in the wake of the 2008 financial crisis, but on a much grander scale. We have bigger QE, more money printing, more government spending and bigger deficits. Case in point — the money supply grew at a record rate in April with no sign of slowing down.We have been arguing that the Fed’s solution is actually the root of the problem. During a recent podcast, Peter Schiff said it was a mistake when they

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Over-Leveraged Zombie Companies Threaten Economic Recovery

2 days ago

There seems to be mounting optimism that the US economy will rebound relatively quickly as states begin opening up and there is progress toward a coronavirus vaccine. But the optimism ignores deep problems in the US economy the existed before the pandemic  – chief among them staggering levels of debt and the proliferation of zombie companies.In the last couple of years, corporate debt has blown through the roof. So much so that the Federal Reserve issued warnings about the increasing levels of corporate indebtedness late last year.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.”The government shutdowns in response to COVID-19 have only

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Peter Schiff: The Fed Won’t Get Away With It This Time

3 days ago

The Federal Reserve and the US government are rerunning the exact same policies they turned to in the wake of the 2008 financial crisis, but on a much grander scale. We have bigger QE, more money printing, more government spending and bigger deficits. During his podcast, Peter Schiff said it was a mistake then, but they got away with it. They won’t get away with it this time.A lot of people still believe we will flip a switch, the economy will fire right back up and everything will just snap back to normal. But as states begin opening up their economies, where are the jobs?You would think we’d see jobs coming back, but instead, we see more people fling for unemployment. Another 2.4 million Americans filed jobless claims last week. In just nine weeks, 38.6 million people have filed for

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Fun on Friday: At Least the Lockdowns Were Good for Somebody

7 days ago

For most of us, these government-enforced coronavirus economic shutdowns have been pretty miserable. I don’t think too many of us feel like we’re overall better off today than we were a couple of months ago – unless maybe you’re in the toilet paper business. Even if they haven’t impacted our pocketbooks, the lockdowns have taken a toll on our psyches. I didn’t like being told to stay inside when I was 10. I don’t like it any better today.But speaking of 10-year-olds, a couple of young boys in France parlayed the lockdown into big bucks.According to a CNBC report, the two boys stumbled upon about $100,000 worth of gold while they were building a fort.The duo was staying with relatives in the French countryside, undoubtedly bored out of their skulls. So, they decided to build a fort. The

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The Economy Isn’t Just Dollars: Friday Gold Wrap May 22, 2020

7 days ago

Jerome Powell went on last week and said there was “no limit” to what the Fed could do to support the economy. Of course, that’s not really true. All the central bank can really do is print more dollars. And the economy isn’t just about dollars. It’s about stuff. In this episode of the Friday Gold Wrap podcast, Mike Maharrey talks about the real problem facing the economy – Powell’s “cure.” He also puts silver in the spotlight.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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The Fed Is All Hat and No Cattle

8 days ago

In response to the coronavirus economic lockdown, the Fed pulled out all the stops, launching what amounts to QE infinity. And there is no end in sight. During a recent interview, Federal Reserve Chairman Jerome Powell said there is “no limit” to what the Fed can do.This is the same “cure” the Fed gave us in the aftermath of the 2008 financial crisis. Most of the mainstream swears it worked. But did it really?We have been arguing that it didn’t In fact, we believe the Fed’s solution is actually the root of the problem.In a recent post at The92ers.com. Peter Schmidt takes a look back at the “cure” for the 2008 financial crisis and shows it wasn’t as successful as advertised. The Fed managed to increase its balance sheet, but the promised reduction in the balance sheet never

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Peter Schiff: You Need to Vaccinate Your Portfolio Against Inflation

8 days ago

Earlier in the week, gold sold off on the announcement that initial trials on a coronavirus vaccine looked promising and on Thursday, gold was selling because, as CNBC put it, the yellow metal was “pressured by hopes of a swift recovery from the coronavirus-driven recession.” During a recent podcast, Peter Schiff said this just goes to show that people don’t understand gold or why its price is generally rising and why they need to buy gold now.It doesn’t matter about a cure or vaccine for COVID-19. That’s immaterial to what is going to happen to gold or to gold stocks. Because gold is not going up because of COVID-19. Gold is going up because of what the government, and more specifically the Federal Reserve, are doing in response to COVID-19, and what they’ve already done. You see, all

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Why Should We Care About Negative Interest Rates?

9 days ago

Are negative interest rates in our future?Jerome Powell says absolutely not. But Jerome Powell also once said balance sheet reduction was on autopilot and that the Federal Reserve wasn’t going to cut interest rates. What the Fed chair says today doesn’t necessarily line up with what the Fed chair does tomorrow.In fact, the markets are starting to bet on negative rates. They are, after all, the next logical step in the Fed’s trek down the path of extraordinary monetary policy.There are already trillions of dollars in bonds trading globally with negative rates. This makes no sense in a sane economic world, but we don’t live in a sane economic world. We live in an economic world distorted and manipulated into some kind of weird Alice in Wonderland fantasyland by central bankers.So, why are

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Peter Schiff: People Will Be Wiped Out By the Inflation Tax

9 days ago

The printing presses are running at full speed as the Federal Reserve creates money out of thin air at an unprecedented rate. Peter Schiff recently appeared on Kitco News to talk about the impact of all money-printing, borrowing and government spending. Somebody has to pay for this and we all will. In fact, a lot of people will be wiped out by the inflation tax.US stock markets have generally been rising despite dismal economic data. Any optimistic news about coronavirus, such as the recent promising vaccine trials sends stocks up. Peter said he thinks people are looking for an excuse to buy, but what’s really driving stocks is the Federal Reserve.Powell on 60 Minutes [Sunday] night basically committing to print an unlimited quantity of money and urging Congress to borrow and spend as

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What Is the Best Way to Buy Gold? (Video)

10 days ago

With the economic chaos created by coronavirus economic shutdowns and the Federal Reserve creating trillions of dollars out of thin air, there is suddenly a lot of interest in buying gold, both as a safe haven and an inflation hedge.But what is the best way to invest in the yellow metal? Should you buy physical gold? Gold ETFs? Gold stocks? What’s the difference? Are there advantages or disadvantages to each of these options?In this short video originally recorded as a Facebook live, SchiffGold News editor Mike Maharrey gives a brief overview of the various ways you can buy into the gold market and the advantages/disadvantages of each.[embedded content]Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email

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Silver Joins Gold at the Party

10 days ago

Silver has finally joined gold at the party.In the last week, the price of the white metal has moved up from $15.51 to $17.35. (as I type this on Tuesday morning May 19) That’s an 11.9% increase.With the jump in the price of silver, the silver-gold ratio has dropped from over 113-1 earlier this month to 101-1 today.In early May, we reported that silver hasn’t been this undervalued when priced in gold in over 5,000 years of human history. Although the silver-gold ratio has close, the while metal remains historically inexpensive compared to gold. We still effectively have silver on sale.At its peak in March, the silver-gold ratio hit an all-time high of over 120-1.Analysts have been expecting silver to break out. A recent article in the declared, “Investors make big bets on silver

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Peter Schiff: It’s Not a Crisis Until It Becomes One

11 days ago

Despite Fed Chair Jerome Powell throwing cold water on the prospect of a quick economic recovery last week, there is still a lot of optimism out there. There is also an appalling lack of concern about all of the debt and money printing going on. In a recent podcast, Peter said nobody expects this to lead to an inflation crisis or a dollar collapse. But what can’t last forever won’t. And it won’t be a crisis — until it becomes one.File this under another sign that we’re not in for a quick economic recovery. Another 3 million Americans filed for unemployment according to last week’s jobs report. Peter asked a pretty poignant question: if things were on the upswing, why would employers who have held on to workers this long let them go now?They held off this long. Why are they still laying

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Fun on Friday: Don’t Read the Comments

14 days ago

I know a lot of you come to Fun on Friday for the advice.Well, here are your words of wisdom for today – never read the comments.It will really help your sanity.Unfortunately for my own sanity, I often forget my own advice and pursue comments. And it almost always hurts my brain.We’ve been running some paid ads on the SchiffGold Facebook page and I have to moderate the comments there. One of the most common is “I’ll never buy gold from them just because of the last name.”They are referring to Congressman Adam Schiff (D-Calif.). Obviously everybody with the last name Schiff must be related to the congressman, right?Now I’ll grant you, Rep. Schiff is an unsavory character – as are most congresscritters. His politics skew way to the left  – you know, pretty much the opposite of Peter’s.

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The Arsonists Are Fighting the Fire: SchiffGold Friday Gold Wrap May 15

14 days ago

Federal Reserve Chairman Jerome Powell dumped cold water on the notion that we’re going to have a quick recovery during a speech this week and begged Congress for more fiscal stimulus. As Friday Gold Wrap host Mike Maharrey put it, Powell and the federal government are the arsonists trying to fight the fire they started. In this episode, Mike talks about Powell’s speech and points out just how clueless he really is. He also covers some of the week’s economic news and its impact on 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, Stitcher and Google Play.Tune in to the Friday Gold Wrap each week for a recap of the week’s economic and

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Staggering April Budget Deficit Just the Tip of the Iceberg

15 days ago

The April federal budget deficit came in at a staggering $738 billion as government coronavirus stimulus began flowing through the pipelines and revenue dipped due to the government lockdowns.Analysts expected a massive deficit in April, but it’s still a staggering number. To put it into perspective, the previous record for a single month was $235 billion and that was just in February of this year.Including April’s shortfall, the budget deficit for fiscal 2020 stands just under $1.5 trillion with five months still left to go.The highest deficit on record was $1.413 trillion in 2009. In fact, the federal government has only run deficits over $1 trillion in four fiscal years, all during the Great Recession. The fifth trillion-dollar deficit was coming down the pike in fiscal 2020, despite

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ETF Gold Holdings Set Yet Another Record

16 days ago

Gold continued to flow into gold-backed ETFs, setting another all-time record in April.Globally, funds added another 170 tons of gold last month amounting to $3.9 billion, according to the latest data from the World Golf Council. It was the sixth straight month of net inflows.April’s inflows pushed total ETF gold holdings globally to a record of 3,355 tons. Assets under management (AUM) also reached a new record high of US$184 billion as gold in US dollars moved higher by 5.8%.This continues an upward trend. Gold-backed ETFs added over 460 tons of gold through the first four months of 2020. Gold ETF assets have grown 80% in the past year. Rolling 12-month inflows of 879 tons slightly surpassed those of 2009 and 2016.North American funds accounted for the bulk of inflows last month,

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Peter Schiff: Inflation Is Going to Be a Huge Problem

16 days ago

The consumer price index fell 0.8% in April, according to the latest Labor Department data. It was the biggest plunge in consumer prices since December 2008. year-over-year, the CPI is up 0.3.By all indications, it appears inflation is the least of our problems despite massive Federal Reserve money-printing and unprecedented government spending. But in his podcast, Peter Schiff said you need to ignore the CPI because despite what it might indicate, inflation is a huge problem.Peter started by pointing out that a slower rise in prices isn’t a bad thing – at least not if you’re a consumer.The only thing better is when prices fall, or don’t rise at all. Rising prices are only good if you’re a government economist or a central banker and you’re trying to convince everybody inflation is

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Is Silver Set to Shine? (Video)

17 days ago

Silver hasn’t been this cheap compared to gold in 5,000 years of human history. What is the silver-gold ratio telling us? Is silver about to shine?SchiffGold News editor Mike Maharrey explains the similarities and differences between gold and silver and offers a number of reasons why silver might set for a big leg up.WATCH[embedded content]For Further ReadingSilver Hasn’t Been This Cheap in 5,000 YearsAncient Egypt Silver Gold Ratio 1:1What’s Going on in the Silver Market?Silver Investment Demand Up and Other Silver NewsGet Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.Interested in learning how to buy gold and buy silver?Call 1-888-GOLD-160 and speak with a Precious Metals Specialist

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Household Debt Was $1.6 Trillion Higher Than ’08 Peak Before COVID-19

17 days ago

Total household debt was over $1.6 trillion higher than the previous peak in 2008 even before the full force of the coronavirus pandemic government shutdowns hit the economy.Household debt increased by $155 billion (1.1%) in Q1 to a total of $14.3 trillion, according to the latest data released by the New York Fed. The previous peak was $12.68 trillion in the third quarter of ’08 in the early days of the financial crisis.Mortgage balances make up the largest component of household debt. Mortgage debt rose by $156 billion in the first quarter to $9.71 trillion.Non-housing debt was relatively flat through the first three months of the year. Student loan balances rose by another $27 billion to $1.54 trillion and auto loan debt increased by $15 billion. But credit card balances declined by

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Peter Schiff: These Jobs Aren’t Coming Back

18 days ago

The US Labor Department released its April non-farm payroll report on Friday and it was as bleak as expected. As Peter Schiff put it, it was the weakest jobs report in the history of jobs reports. And even worse, a lot of these jobs are never coming back.A record 20.5 million Americans lost their jobs last month and the unemployment rate surged to 14.7%. It was the largest and most sudden rise in joblessness since the government started tracking the numbers. This piles onto the March job losses, which were revised up from 701,000 to 870,000.Not only did millions lose their jobs; a lot of Americans dropped out of the job market completely. The labor force participation rate fell to 60.2.Average hourly earnings soared, but this isn’t a good sign. It certainly doesn’t mean people got

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Fun on Friday: Don’t Send Your Scam Mail to This Guy

21 days ago

I have some advice for you wanna-be scammers out there.Check your mailing list.A scammer in British Columbia sent his pitch to a cop – a member of the Delta police economic and technical crime unit to be exact. That’s not the ideal person to send a scam letter to. Just sayin’.The letter came in an envelope that says in bold red letters “CORONAVIRUS AFFECTING MARKETS: READ NOW.”This doesn’t strike me as the best approach. My translation of that is more like “THROW THIS JUNK MAIL IN THE TRASH NOW.” But perhaps I’m just cynical.Here’s a question though: where’s the lie? I mean, the “headline” ain’t wrong.Anyway, according to the , (What a happy name for a newspaper undoubtedly filled with doom and gloom!) The sender claimed to be a stock analyst and geologist. The letter reportedly made

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The New Normal: SchiffGold Friday Gold Wrap May 8, 2020

21 days ago

People keep talking about the “new normal” we’ll all have to adjust to as we recover from the coronavirus pandemic. So, what does that mean for the economy? In this episode of the Friday Gold Wrap podcast, host Mike Maharrey looks ahead at the new normal, the prospects of an economic recovery and speculates that we might have already caught a glimpse of the future last year. He also covers the gold market and looks at some of the economic data this week.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,

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Peter Schiff: The Fed Can Never Take the Easy Money Drug Away

22 days ago

The Federal Reserve is creating a massive amount of money out of thin air and injecting it into the economy. Pretty much everybody believes this is the only choice given the economic emergency we face. But we’re told once the emergency is over, the Fed will take the excesses away. In his podcast, Peter Schiff explains why this will never happen. Once the drug addict is hooked, you can’t just take the drug away.Peter started the podcast saying he thinks the bear market relief rally is coming to an end.The Fed can only buy so much with its QE and rate cuts.”[embedded content]The stock market rally in April created a lot of optimism about the economy. The prevailing mindset was “if we can turn it off, we can turn it back on.” Peter said now that the fog is starting to lift a bit, people

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Central Banks Added 46 Tons of Gold to Reserves in March

23 days ago

Central banks globally added another net 46.1 tons of gold to their reserves in March with the usual suspects making big purchases, according to the latest data released by the World Gold Council.The pace of central bank purchases seems to be increasing, although a few banks are doing the bulk of the buying. Globally, central banks upped purchases in March by about 10 tons over February’s total, which was 33% higher than January’s buying.On the year, central banks have added a net 110.6 tons of gold to their reserves. This is off the near-record pace of purchases last year.Central bank demand came in at 650.3 tons in 2019. That was the second-highest level of annual purchases for 50 years, just slightly below the 2018 net purchases of 656.2 tons. According to the WGC, 2018 marked the

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What Happens When the Bond Bubble Pops?

23 days ago

Celsius Network, founder and CEO Alex Mashinsky calls the bond market, “the biggest bubble that hasn’t burst yet.” And when the massive bond bubble pops, that’s when the real earthquake begins.The US Treasury Department is pumping out bonds like there’s no tomorrow. It announced this week that it plans to borrow $2.99 trillion in this quarter alone. The projected borrowing for fiscal 2020 comes in at a staggering $4.48 trillion.All of these Treasuries are pouring into an already bloated bond market. As the stock market crashed in response to the growing coronavirus pandemic and investors scurried into safe havens, demand for bonds surged. Prices spiked and interest rates fell to record lows.As the stock market began to tank in late February, Peter Schiff warned that the bond market was

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Silver Investment Demand Up and Other Silver News

24 days ago

Global silver demand nudged higher in 2019 thanks to a 12% increase in investment demand as retail and institutional investors focused their attention on the long-term investment appeal of the white metal according to a report highlighted in the latest edition of the Silver Institute’s .According to the World Silver Survey 2020, total demand inched higher by 0.4% despite the trade war. Investment demand grew to 186 million ounces, the largest annual growth since 2015. Exchange-traded product holdings stood at 728.9 million ounces at year-end, up by 13%, achieving the largest annual rise since 2010.Meanwhile, silver mine supply fell for the fourth straight with output declining by 1%.The supply/demand dynamics are bullish for the white metal and silver hasn’t been this cheap in 5,000

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Silver Hasn’t Been This Cheap in 5,000 Years

25 days ago

We have financial records dating back some 5,000 years and in all that time, silver has never been this cheap compared to gold.Kanesh was an important trading hub in the Assyrian empire. The city was located in the middle of what is now Turkey, at the midpoint of the route between the Mediterranean and the Black Sea. Archeologists have found thousands of clay cuneiform tablets in the region that provide a tremendous amount of detail about ancient financial transactions. For instance, one tablet on display in the New York Metropolitan Museum documents the terms of a loan dating back to the 19th century BC. An Assyrian merchant named Ashur-idi loaned 3kg of silver to two traders, with 1/3 of the amount to be repaid in one year’s time. Other tablets give us a pretty good idea of exchange

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Peter Schiff: A Very Dangerous Road to Go Down

25 days ago

As if there weren’t enough headwinds for the economy already, the reported the Trump administration was exploring the possibility of canceling some US debt obligations to China.  President Trump denied it but floated the idea of tariffs on Chinese imports as punishments for that country’s handling of the coronavirus. Peter Schiff appeared on to talk about the economic saber-rattling and the possible impacts on the US stock market.Peter said even threatening to default or selectively cancel US debt obligations that the Chinese own is “a very dangerous road to go down.”Not only could that scare the Chinese into selling, but it might scare other creditors into thinking that we may do the same thing down the line to them.”[embedded content]As far as punishing China with tariffs, Peter

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