Peter Schiff: The Gold And Silver Market Is In ‘The Lull Before the Storm’
The comments below are an edited and abridged synopsis of an article by Anna Sokolidou
Gold seems to be stuck near the $1,900 mark. Peter Schiff, CEO of Euro Pacific Capital, says that gold bugs have no reasons to worry about this, and he explains how the yellow metal can reach an all-time high.
Everyone expects the economy to recover and the Fed to taper soon; however, Schiff says whatever your allocation is going to be to physical gold and silver, fully allocate now. Don’t wait for lower prices because you’re probably going to be waiting indefinitely. Schiff says it’s important to buy physical gold and silver, not paper-based products.
Schiff does not think that the inflation we are facing is transitory. He thinks we’re facing a similar situation to 2007 and the subprime mortgage crisis.
Schiff believes that inflation is here to stay and will get out of control, since the Fed “has no ability to fight inflation because it has created such a massive credit bubble. There is now so much debt in the system thanks to the Fed that if the Fed were to raise interest rates to fight inflation, they would collapse the entire house of cards economy that they’ve been erecting over the years, and so they’re not going to do that.”
“Gold is the money by which everything else is overpriced. The reason that gold is not in a bubble is because everything else is in a bubble in terms of gold. Gold is the stable store of value. Gold is real money. It’s a safe haven. And during bubbles and manias, everybody wants to buy the risk assets… I expect all of those bubbles to pop… But the way I expect them to deflate is not with their dollar price going down, but with the gold price going up… the price of everything is going to crash when expressed in gold and silver. And so what you want to do in advance of the deflation of the everything bubble is to buy the asset that everything is going to be deflated against, and that is real money. That is gold and silver.”