gold prices

Peter Schiff: China, Other U.S. Creditors Could Emulate Switzerland, Implode America When Fed Attempts QE4

“One of the world’s safest investments- the Swiss franc- has swung wildly this week after the central bank in Switzerland announced it would scrap its policy of limiting the rise of the currency.

It may seem like an arcane move, but it’s not. The Swiss National Bank’s surprise decision on Thursday caused the franc to surge against the euro and dollar, sending shockwaves through the global financial system.

Holders of Swiss francs profited handsomely, but many investors and brokerage firms, were pounded with losses…”

-Associated Press, January 16, 2015

Anyone been paying attention to what happened with the Swiss franc this past week? I have a feeling most American aren’t- which is a mistake, because the actions of the Swiss central bank may be repeated by China and other countries in the near future with respect to our country. Euro Pacific Capital CEO Peter Schiff talked about the possible implications in his January 16, 2014, entry in The Schiff Report vlog on YouTube.com. Schiff warned viewers:

When the Fed comes up with QE4, China is going to be faced with a similar decision as Switzerland. Are they going to back up their trucks and load them up with dollars? Because if we do QE4, we’re going to expect the Chinese to bear the burden if they want to keep their currency from going up. And I think Switzerland is going to show them the way. They’ll see the light. This is not going to be detrimental to the Swiss economy. On the contrary, this is going to be a positive for Switzerland, and it could be a positive for China if they abandon their peg as well. But, that’s going to be even worse for America than what Switzerland did to Europe… for America, we’ve been relying on this Chinese crutch for so long, you take it away, and there’s a real implosion here. We’re going to suffer much more if the Chinese pull our plug. I mean, we’re really going to go down the drain. This might not necessarily be the nail in the coffin for the Europeans. ..

People should look at this lesson of Switzerland and heed these warnings. And don’t just look in the rearview mirror at what happened in Switzerland. But look forward, look through the windshield at what’s coming. Look at the relationship between the Swiss franc and the euro and what are the implications between the dollar and other pegged currencies like the yuan and the Hong Kong dollar. All of these relationships are eventually going to crack. All of the countries that are subsidizing the United States, that are absorbing our trade deficits, that are piling up our Treasuries- they’re all going to have the same problem that Switzerland had. They made a mistake and corrected it in three short years. These others countries have been making a bigger mistake for a longer period of time, but eventually, they are going to be forced to bit the bullet and cut and run. And I think it’s going to be the same decision that motivated the Swiss is going to be the prospect of QE4, because everybody is expecting a tighter Fed, everybody believes that we have a legitimate recovery, and nobody is expecting this recovery to implode, and the Fed to come back with QE4- but that is exactly what’s going to happen. Just the way they were caught by surprise by what happened with the Swiss franc, they’re going to be even more surprised by what’s going to happen with the U.S. economy, what’s going to happen with the dollar…

Don’t wait for that to happen. Don’t be surprised. Don’t be bankrupted like the forex traders, or the forex companies that were extending the credit to the leveraged speculators. Get your economic house in order. Understand that economic fundamentals always come through in the end. Sometimes it takes longer to happen, and sometimes people become emboldened, because if something hasn’t happened, they think it’s never going to happen. And exactly when you get complacent, when you think it’s always going to be that way- and believe me, the people that were levered up short the Swiss franc, in their wildest imaginations, they could not see this day coming. Even though it should have been obvious that this day would come. Nobody knows when. And that’s why I always tell my clients, we’ve got to be prepared in advance. It’s too late, if you’re a day late. You’ve got to be early. If you woke up yesterday morning, and you were short the Swiss franc, it was too late to cover. The market just gapped, it was a huge move, there was nothing you could do. You had to be prepared in advance. You couldn’t time it- there was no way to know exactly when it was going to happen- because nobody could figure that out. You have to be early. You can’t be late. And so when it comes to structuring your portfolio and preparing for a dollar crisis, you’re not going to see it coming. You’re not going to do it at the last minute. You’ve got to be prepared in advance. And, you know, there’s plenty of warning signs that that day of reckoning is coming.


“Will China Pull a ‘Switzerland’ on the U.S. Dollar?”
YouTube Video

Schiff, who also heads up SchiffGold, shared his view on how gold might perform in the coming year. He told viewers:

I think gold’s going to have a big first half- even bigger than the first half of 2014- but in the second half, that’s when it could really take off.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Tags: , , , , , , , , , , , , , , , , , ,

Marc Faber: Gold Going Up 30% In 2015

“BullionVault, an online service for investors to buy and sell physical gold and silver, said its Gold Investor Index fell in December to an almost five-year low.

The gauge, which measures the balance of buyers against sellers, slipped to 50.5 from 52.1 in November, the London-based company said in an e-mailed report today. That’s the lowest level since February 2010 and marked the biggest drop since 2013. A reading above 50 indicates more buyers than sellers…”

-Bloomberg.com, January 6, 2015

Regular readers of Survival And Prosperity know that Swiss-born investment advisor/money manager Marc Faber has been a gold bull for some time. And the publisher of the monthly investment newsletter The Gloom Boom & Doom Report is so confident about a rising price of gold in 2015 (in spite of all the negative sentiment among investors) that he made an eye-opening prediction yesterday. Sara Sjolin reported on the MarketWatch website Tuesday afternoon:

“I’m positive [that] gold will go up substantially [in 2015] — say 30%,” Faber, whose investment letter is called the Gloom Boom Doom Report, said at Société Générale’s global strategy presentation in London on Tuesday.

“My belief is that the big surprise this year is that investor confidence in central banks collapses. And when that happens — I can’t short central banks, although I’d really like to, and the only way to short them is to go long gold, silver and platinum,” he said. “That’s the only way. That’s something I will do.”

(Editor’s note: Bold added for emphasis)

BullionVault

Dr. Faber repeated his recent “bubble in everything, everywhere” statement while in London. Sjolin added:

“We simply have highly inflated asset markets. Real estate is high, stocks are high, bonds are high, art prices are high, and interest rates and short-term deposits are basically zero,” Faber said. “The only sector that I think is very inexpensive is precious metals, and in particularly precious-metals stocks.”

(Editor’s note: Bold added for emphasis)

Faber, who became well-known for advising clients to get out of the U.S. stock market one week before the October 1987 crash and for predicting the 2008 global financial crisis, appeared on CNBC’s Squawk Box back on September 19, 2014, and warned viewers:

Today, the good news is we have a bubble in everything, everywhere- with very few exceptions. And, eventually, there will be a problem when these asset markets begin to perform poorly. The question is- what will be the catalyst? It could be a rise in interest rates not engineered by the Fed, because I think they’ll keep interests rates at zero on the Fed funds rate for a very long time… We could have essentially a break in bond markets at some point. We also could have a strong dollar. A strong dollar has already happened in the last two months signifies that international liquidity is tightening. And when that happens, usually it’s not very good for asset markets.

Dr. Faber also sees a potential investing opportunity in emerging markets, which you can read about in Sjolin’s piece on the MarketWatch website here.

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Tags: , , , , , , , , , , , , , , , , , ,

Peter Schiff: Buy Gold, Silver To Prepare For Bursting Of This ‘Much Bigger Bubble’ Than Housing, Dot-Com

The first installment of Peter Schiff’s Gold Videocast for the new year is out on YouTube. And Euro Pacific Capital’s Schiff recapped gold’s performance in 2014 and shared his outlook for the precious metal- along with silver- in 2015. He told viewers:

I think the sentiment situation, the markets, the technicals, are really poised for a very, very big year up in the precious metals in gold and silver for 2015. And nobody is expecting this. We had the sentiment completely in the opposite direction. All the bears were piled onto the same side of the boat. And now it turns out that they got it wrong. And I think they’re going to have to scramble to get to the other side as this illusion rapidly fades. Again, I’ve said this many times, that I’ve never seen a bigger disconnect in the markets- the stock market, the currency market, the precious metal market- between reality and perception. What everybody believes is wrong. And soon, these widely-held beliefs are going to be questioned in a major way and then abandoned. Just like they were with the housing market and subprime when that bubble burst. And just like they were with in dot-com market when that bubble burst. Except that this is a much bigger bubble, and the damage and the fallout on the financial markets will be much greater when this bursts. And therefore, it’s that much more important that investors be properly prepared. And part of that preparation is owning gold and silver.


“State of the Gold Market 2015: Exclusive Forecast & Charts”
YouTube Video

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Tags: , , , , , , , , , , , , ,

Marc Faber Shares 2015 Outlook, Talks Bonds, Stocks, Precious Metals

Yesterday, Swiss-born investment advisor/money manager Marc Faber appeared on Bloomberg Television’s In the Loop. Speaking with Brendan Greeley, Betty Liu, and Erik Schatzker, the publisher of the monthly investment newsletter The Gloom Boom & Doom Report shared his outlook for 2015. Dr. Faber told viewers:

I’m saying that we will have a lot of volatility and a lot of surprises, that’s why I keep on recommending diversification. And I just like to mention that hedge funds in 2014 and active money managers had a bad year. Almost 90 percent of active managers underperformed the S&P 500. And hedge funds, by-and-large, the average is up about 1 percent. But the portfolio that has actually done well is the All Weather portfolio of Bridgewater Associates, because they diversified- they were also in bonds…

So I’m diversified. I still think that the sentiment about stocks in the U.S. is much too bullish, much too optimistic… I think the Treasury market is not such a bad alternative given my view that the global economy is actually slowing down, and given the low yields you have in Japan and Europe.

(Editor’s note: Bold added for emphasis)

Famous for advising clients to get out of the U.S. stock market one week before the October 1987 crash and for calling the 2008 global economic crisis, Dr. Faber told the Bloomberg audience that when it comes to stocks, he prefers to invest in Asia and emerging economies of Asia than in the U.S.

The “crash prophet” added one more thing. Faber said:

I tell you, I prefer physical precious metals stored outside the U.S. But if you cannot own physical precious metals, I believe that whereas the sentiment about the stock market is bullish, and about investments in general, and whereas I believe that most assets are in kind of a bubble- we have a credit bubble- I have to say that sentiment about precious metals is incredibly negative. And all these experts are predicting gold price to drop to $700. Well understood, these are experts that never owned a single ounce of gold in their lives. So they missed the five-fold increase since 1999. But they all know that the price of gold will go to $800- they’re right about it with a lot of authority. And they also say these are people that never gave a gold jewelry to their girlfriends and saw the smile of these beautiful girls after they received the jewelry.

(Editor’s note: Bold added for emphasis)


“Marc Faber: Diversify Amid Volatility, Surprises in 2015”
Bloomberg TV Video

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Tags: , , , , , , , , , , , , , ,

Nouriel Roubini: ‘Mother Of All Asset Bubbles’ To Pop In 2016

One of the original “crash prophets” of the 2008 global economic crisis is now sounding the alarm over what he sees in 2016.

I first mentioned Nouriel Roubini, a former Treasury official under the Clinton administration, a professor of economics at NYU, and chairman of Roubini Global Economics, in my old blog Boom2Bust.com several years ago. Roubini correctly-predicted the financial crisis, but “Dr. Doom”- as the financial media likes to call him- had become more optimistic this year. On May 14, 2014, he “debated” fellow “prophet” Peter Schiff on CNBC’s Fast Money, saying:

We’re printing a lot of money but it’s not creating credit. It’s not creating inflation. And if we had not done this policy, this Great Recession would have become a Great Depression. So, inflation is going to stay low. Gold prices are going to fall. And I don’t believe that the dollar’s going to collapse. Actually, I believe the dollar’s going to become stronger in the next few years- just the opposite of what Peter thinks.

But these days, Dr. Roubini is starting to sound gloomy again. Last week, I happened to come across a Yahoo! Finance interview with Roubini from earlier this month. From an exchange with editor-in-chief Aaron Task:

TASK: Nouriel Roubini is often referred to as “Dr. Doom”- affectionately of course- but the NYU professor and chairman of Roubini Global Economics is not always downbeat. He prefers “Dr. Realist,” and in February 2013 Roubini told Yahoo! Finance and this reporter that, “The mother of all asset bubbles had begun, and would eventually be bigger than the 2003-2006 bubble.” Since that time the S&P 500 is up about 40 percent, so Nouriel, that was a great call if you were long, and bubbles are great if you’re long and you get out in time. Where do you see- what inning, if we use the baseball analogy, are we in in this bubble from your point of view?
ROUBINI: We’re in middle-later innings. Next year we’ll have economic growth. We’re still easy money. I think that this frothiness that we’ve seen in these financial markets is likely to continue- from equities to credit to housing. And in a couple of years, most likely, this asset inflation is going to become asset frothiness. And eventually, an asset and a credit bubble. And eventually, any booming bubble ends up a bust and a crash. I don’t expect that happening next year, but I would say that valuations in many markets- whether its government bonds or credit or real estate or some equity markets- are already stretched. They’re going to become more stretched as the real economy justifies a slow exit, and all this liquidity is going into more asset inflation. And so, two years down the line for them to shake out, but not before then.
TASK: A couple of years down the line, okay.
ROUBINI: Yeah. 2016 I would say.

(Editor’s note: Bold added for emphasis)


“Roubini: U.S. equities will be strong until 2016”
Yahoo! Finance Video

Dr. Roubini gave this advice to investors:

At this point, I would be neutral or underweight U.S. equities compared to other markets.

As for “best bets” in 2015, he told viewers:

Several I would say. I would say, dollar strength relative to the euro, relative to the yen, relative to the commodity currencies, relative to fragile emerging markets. And a bet on commodities further another leg down, certainly industrial metals like copper and others linked to China. Those will be two of the stories for 2015.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Tags: , , , , , , , , , , , , , , , , , , , ,

Alan Greenspan: Gold Is A Currency, And Currently A Good Investment

Back in late October I recall The Wall Street Journal talking about some comments made by former Federal Reserve Chairman Alan Greenspan to the Council on Foreign Relations concerning gold. I’ve been meaning to look into what Greenspan, who served as Fed Chair from 1987 to 2006, actually said about the precious metal. During lunchtime, I dug up the final version of the transcript from his visit with the CFR in New York City on October 29, 2014. From the exchange between the president of Greenspan Associates LLC and presider Gillian Tett:

TETT: I’m going to turn to the audience for questions in one minute, but before I do though, I just want to ask though, one of the really interesting chapters in your book is about gold. And there’s been a lot of media debate in the past about your views on gold.

You yourself oppose a question as to why would anyone want to buy this barbarous relic — I don’t know whether John Paulson is in the audience — but it’s an interesting question. But do you think that gold is currently a good investment given what you’re saying about the potential for turmoil?

GREENSPAN: Yes.

(LAUGHTER)

TETT: Do you put…

GREENSPAN: Economists are usually perfect in equivocating. In this case I didn’t equivocate. Look, remember what we’re looking at. Gold is a currency. It is still by all evidences the premier currency where no fiat currency, including the dollar, can match it. And so that the issue is, if you’re looking at a question of turmoil, you will find, as we always have in the past, it moves into the gold price.

But the gold price is actually sort of half a commodity price, so when the economy is weakening, it goes down like copper. But it’s also got a monetary characteristic which is instrinsic. It’s not inbred into human beings — I cannot conceive — of any mechanism by which you could say that, but it behaves as though it is.

Intrinsic currencies like gold and silver, for example, are acceptable about a third party guarantee. And, I mean, for example at the end of World War II, or just at the end of it, Germany could not import goods without payment in gold. The person who shipped the goods in would accept the gold, and didn’t care whether there was any credit standing — associated with it. That is a very rare phenomenon. It’s — it’s the reason why, for example, in a renewal of an agreement that the central banks have made — European central banks, I believe — about allocating their gold sales which occurred when gold prices were falling down, that has been renewed this year with a statement that gold serves a very important place in monetary reserves.

And the question is, why do central banks put money into an asset which has no rate of return, but cost of storage and insurance and everything else like that, why are they doing that? If you look at the data with a very few exceptions, all of the developed countries have gold reserves. Why?

TETT: I imagine right now, it’s because of a question mark hanging over the value of fiat currency, the credibility going forward.

GREENSPAN: Well, that’s what I’m getting at. Every time you get some really serious questions, the 50 percent of the gold price determination begins to move.

TETT: Right.

GREENSPAN: And I think it is fascinating and — I don’t know, is Benn Steil in the audience?

TETT: Yes.

GREENSPAN: There he is, OK. Before you read my book, go read Benn’s book. The reason is, you’ll find it fascinating on exactly this issue, because here you have the ultimate test at the Mount Washington Hotel in 1944 of the real intellectual debate between the — those who wanted to an international fiat currency which was embodied in John Maynard Keynes’ construct of a banker, and he was there in 1944, holding forth with all of his prestige, but couldn’t counter the fact that the United States dollar was convertible into gold and that was the major draw. Everyone wanted America’s gold. And I think that Benn really described that in extraordinarily useful terms, as far as I can see. Anyway, thank you.

TETT: Right. Well, I’m sure with comments like that, that will be turning you into a rock star amongst the gold bug community…

(Editor’s note: Bold added for emphasis)

I’m not sure if the above will mean Greenspan is now a rock star among the “gold bugs”- he’s still considered by many as being a habitual asset bubble blower. But such a high-profile individual within the global financial community lending support to the ideas that gold is a currency and currently a good investment will no doubt anger a number of gold bears and haters.

You can read the entire transcript of Greenspan’s visit to the CFR on their website here.

Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Tags: , , , , , , , , , , , , , ,

Peter Schiff: Swiss ‘No’ Vote May Signal Gold’s Bottom, Return Of Bull Trend

“Swiss voters overwhelmingly rejected an initiative on Sunday that would have forced the country’s central bank to hold one-fifth of its assets in gold, a move that would have eroded its ability to conduct monetary policy.

Citing projections from results in 19 of the country’s 26 cantons, Swiss television said roughly 78% of voters opposed the initiative, dubbed ‘Save Our Swiss Gold.’ The gold initiative would have also barred the Swiss National Bank from selling gold in the future…”

-The Wall Street Journal website, November 30, 2014

I hadn’t been paying too much attention to that Swiss vote on gold. But after the mainstream financial news outlets cheered the Swiss citizens rejecting the initiative, I thought this could rank right up there with the United Kingdom selling off half its gold reserves in 1999 when the precious metal was valued at only $300 an ounce- a 20-year low at the time.

In other words, a move the Swiss may very well come to regret in the coming years.

To each their own, I always say.

And Wednesday, the CEO of Euro Pacific Capital, Peter Schiff, shared his thoughts about Switzerland’s rejection of the yellow metal. From his December 3 SchiffGold “Gold Videocast” entry on YouTube.com:

I actually believe that the “no” vote- from the long-term perspective- is even more bullish for the price of gold than had Switzerland voted to back their currency with 20 percent gold…

Thinking about it from a historical perspective, if there’s a chance that we saw the lows for the entire gold move on Sunday night, it would be ironic, and then I think makes a lot of sense, that the Swiss “no” vote on adopting even a modified gold standard would mark the low point for gold. Just like you have the Bank of England dumping a bunch of gold at the lows, I mean, central banks or actions around central banks sometimes mark key points. And the fact that the Swiss said “no” to gold, “we don’t want it,” that may be the day that gold actually bottomed out and now we’re resuming the bull trend. Only time will tell whether that is the case. But again, if it’s not the absolute bottom, I think it’s close enough not to worry about it, and I think that people need to be buying the gold that the Swiss citizens just told their bank not to buy. And not only the gold, silver. Because if gold goes up, silver’s going up. So buy both metals.


“Gold Videocast: Swiss Franc No Longer a Safe Haven
and a Possible Bottom in Gold”
YouTube Video

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Tags: , , , , , , , , , , ,

Jim Rogers On Commodities: ‘This Is A Correction In A Bull Market’

Not sure how I missed an interview of investor Jim Rogers on the Business Insider website back on November 14- because it’s a terrific one. From an exchange between BI co-founder, CEO, and Editor-In-Chief Henry Blodget and the “guru” who predicted the commodities boom that began in 1999:

HB: You made a great call on commodities more than a decade ago. We’re in a downturn now. What is your view going forward?
JR: Great question. I certainly missed this correction. The correction has been worse than I thought. Some of it I knew — I’ve been quite vocal that gold would go down and stay down for a while during this bull market, maybe even under $1,000 dollars per ounce. But still the overall correction I got wrong. My view, rightly or wrongly, is that this is a correction in a bull market. You will remember in the bull market in stocks between 1980 and the end of the century, we had some very serious corrections. And every time people said the bull market was over, it wasn’t. It ended in a bubble. My view is that’s what’s going to happen with commodities. We’re in a correction, a serious one, but that it will turn around. Back to what we said about oil, most major oil fields are in decline. In agriculture, we’re running out of farmers. So we’re facing a serious problem worldwide. I don’t see enough new supply to say the bear market has started again, that the bull market is over. I think there will be one more big leg.
HB: So is this a buying opportunity?
JR: For sugar maybe. Rice maybe. I do own gold, I do own silver. I haven’t bought any of significance in a few years. I haven’t sold any. Gold went up for 12 years in a row without a down year, which is extremely unusual in markets. So in my view the correction will be unusual as well. Gold has not had a 50% correction in years, which too is unusual. That would be $960 per ounce. I’m not predicting it’s going to go there. I’m just pointing out to you there’s going to be another chance to buy gold and silver in another year or two or three, I have no idea why. If America goes to war with Iran, I’ll probably buy gold at $1,600, begging to get more…

The former investing partner of George Soros in the Quantum Fund also talked about:

• U.S. stocks
• Fed stimulus
• More economic “hard times” ahead
• Crude oil
• Russia
• Ukraine
• Asia
• Timing investments
• Advice for young professional investors

The Business Insider piece really is one of the best interviews of Jim Rogers in a while, which you can read on their website here.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Tags: , , , , , , , , , , ,

Jim Rogers: Gold May Drop To Around $1,000 Before Rebounding

According to a report out of Taiwan, well-known investor Jim Rogers suspects the price of gold ($1,199 an ounce as I type this) may be heading lower. The Singapore-based investor was giving a media interview in Beijing recently and shared his outlook- and investing strategy- for the precious metal. From the Want China Times website (English news site of Taiwan-based China Times News Group) yesterday:

Rogers predicted gold may drop to around US$1,000 per once and then rebound to up to US$1,500 per ounce. He will increase his gold assets when the price reaches US$1,000, he said.

(Editor’s note: Bold added for emphasis)

Rogers, who predicted the commodities rally that began in 1999, often talks about gold. Back in November of last year, the chairman of Rogers Holdings and Beeland Interests provided the following in an interview with Burbank, California-based Birch Gold Group (blogged about here):

Well, everybody should own some precious metals as an insurance policy. So if they don’t have any right now, I would urge them to go buy something, buy themselves a gold coin if nothing else, and see that it’s not going to hurt. It won’t hurt you to buy the first gold coin, the first silver coin, and from that you start accumulating as your own situation dictates.

First, do your homework, don’t buy gold because you heard me say it or even because you hear you say it. But if people don’t own they should start after they have done their homework. And then they will probably, if they do their homework, most people will then realize, “Oh my gosh, I better have insurance, and gold and silver may get me through serious problems ahead.”

(Editor’s note: Bold added for emphasis)

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Source:

“One reminbi to one US dollar in 25 years: Jim Rogers.” Want China Times. 25 Nov. 2014. (http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20141125000058&cid=1203). 26 Nov. 2014.

Tags: , , , , , , ,

Peter Schiff: Gold Will ‘Take A Rocket Ship Back Up’ And Eclipse $5,000

Kitco News anchor Daniela Cambone got the chance to speak to Euro Pacific Capital CEO Peter Schiff on November 18. The “crash prophet” who correctly-predicted the U.S. housing bust and 2008 global economic crisis was at the Grand Cayman Liberty Forum, and here’s what the long-time gold bull had to say about the precious metal. From their exchange:

CAMBONE: So let’s tie this back into gold now. What’s your outlook for the metal? I know you’ve been bullish on the metal. Do you continue to be?
SCHIFF: Yes. I’m bullish. You know, it’s hard to call the short term obviously and people now are trying to say, “Oh Peter, you know, you were saying gold was going to go to $5,000.” It’s going to go to $5,000. And in fact, I looked at some of my CNBC interviews and I was predicting $5,000 when gold was $500. So, it’s not like I just started doing it when it was at $900. Right? I’ve had that target on my mind for some time. And I think we’re going to eclipse it. And I think when this decline is over-and it’s been 2 or 3 years since gold hit its high around $1,900- I think it’s going to rise faster than before. Normally markets go down- they take the stairs up and the elevator down. Well I think that gold is going to take a rocket ship back up, because I think when all the people who have been shorting gold and selling gold realize that they’ve got it wrong, and they want to buy it back- it’s just not there. Because I think the real gold- all the gold that was dumped out of ETFs- I think it’s sitting in vaults in Russia and China, and it’s never going to see the light of day again. So when the buyers want it back, it’s not going to be there…

Schiff proclaimed later:

This is the best fundamental environment I’ve ever seen for gold. And also, I do believe that the dollar’s days as the world’s reserve currency are numbered, and when the dollar is no longer accepted as the reserve currency, what’s going to take its place? It’s not going to be the euro. It’s not going to be the yen. I think it’s going to be gold. I think the world is going to go back to gold…


“Gold Will Take Rocket Ship Back Up – Peter Schiff | Kitco News”
Gold discussion starts at 3:44
YouTube Video

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Tags: , , , , , , , ,

Peter Schiff And Axel Merk Talk Gold

I’ve been so busy lately I didn’t realize Peter Schiff’s Euro Pacific Precious Metals had been rebranded as SchiffGold. And earlier today, I spotted a new Gold Videocast published on SchiffGold.com in which Axel Merk is interviewed. The topic? Gold. From the website:

In this SchiffGold exclusive video, Peter Schiff sits with Axel Merk at the recent New Orleans Investment Conference to discuss gold investing in the midst of the currency wars. Like Peter, Axel was one of the few analysts to warn of the 2008 financial crisis and he remains one of the few analysts independent from the mainstream “recovery” consensus. Their conversation covers the history of gold’s price performance, the upcoming Swiss Gold referendum, the role of physical bullion in a portfolio, and much more.

I found their discussion about gold’s victorious outcome in a currency war and ownership of physical gold particularly interesting. Especially when Peter noted:

It’s not that people want to do something illegal but people fear that the government may do something illegal in the future, may do something oppressive in the future. They might want to confiscate gold but they can’t confiscate it if they don’t know where you have it. If you have it in a brokerage account, they know where it is and they can take it. But if you have it buried somewhere or in a safe, they can’t get at it.

Good stuff, which you can read (full transcript provided) and watch in its entirety on the SchiffGold website here.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s note: I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Tags: , , , , , , , , ,

Marc Faber Declares ‘I Want To Own Some Gold Because I Don’t Trust The Financial System Anymore’

Swiss-born investment advisor/money manager Marc Faber was on the Bloomberg Television show Street Smart last week. The publisher of the monthly investment newsletter The Gloom Boom & Doom Report talked with host Trish Regan about a number of financial topics, including gold. From their exchange:

REGAN: I know you have been bullish on gold for pretty much forever, Marc. But now we’re in a situation where gold is at a 4-year low. Goldman now predicting $1,050 an ounce. SocGen saying 1,000 bucks. Where do you see gold finishing the year?
FABER: I would say Goldman Sachs is very good at predicting lower prices when they want to buy something. But that aside, I would say, yes- we are down from $1,900 to $1,160 or something like this, and it’s been a miserable performance since 2011. However, from the ’99 lows we’re still up more than four times. So, I just looked at performance tables over 10 years and 15 years- gold hasn’t done that badly. Has done actually better than stocks. Now I personally, I think that we may still go lower- it’s possible, I’m not a prophet. But I’m telling you- I want to own some gold because I don’t trust the financial system anymore. I think the whole thing is going to collapse one day. And then I’ll be happy to have some assets. But of course the custody is important. I wouldn’t hold my gold at the Federal Reserve because they will lend it out. I wouldn’t hold my gold in the U.S. at all.


“More Americans ‘Can’t Afford’ to Buy Homes, Faber Says”
(Gold discussion begins at 7:30)
Bloomberg Television Video

This isn’t the first time Dr. Faber has warned about storing gold in the United States. He told CNBC’s Amanda Drury on August 16, 2013:

I have a preference for physical gold held in a safe deposit box outside the United States and preferably in Asia, for a variety of reasons.

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Tags: , , , , , , ,

Marc Faber: ‘The Gold Market Has Bottomed-Out’

Well-known investment advisor/money manager Marc Faber was on the FOX Business show Opening Bell last Wednesday. Speaking by phone, the publisher of the monthly investment newsletter The Gloom Boom & Doom Report was asked by host Maria Bartiromo about the geopolitical instability going on and investing in such an environment. From their exchange:

BARTIROMO: Mark, what do you think? What would you be doing right now as an investor?
FABER: Well, basically, I always own some shares. Most of my shareholdings are in Asia… In Asia, the Indian market is up 22 percent year-to-date. The Thai market is up 20 percent in dollar terms. Jakarta is up 24 percent. Philippines up 18 percent. Karachi up 17. Ho Chi Min up 17.
BARTIROMO: So you want to continue to stay exposed to Asia then and not the U.S.?
FABER: Yes. Yes. I worry about the geopolitical tensions, and they have an impact on Vietnam. But I think all the Asian countries are so China-centric that there won’t be a military conflict. There’ll be rattling and disputes and so forth. But the U.S. doesn’t have the power to really wage a war in Asia. That we have to be very clear about.
BARTIROMO: Mark, very quickly, the bottom line on the U.S.- do you think we’re going to see a sell-off this year?
FABER: Yes.
BARTIROMO: How significant?
FABER: As I told you before, I would own some gold, because I think the gold market has bottomed-out. Year-to-date, the junior gold mining index is up 40 percent.


“How geopolitical issues could derail the markets”
FOX Business Video

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Tags: , , , , , , , , , , , , , , , , , , ,

Jim Rickards Suspects China Behind Gold Price Manipulation As It Buys Metal To Hedge Against Dollar Devaluation

Euro Pacific Capital CEO and Global Strategist Peter Schiff just got done interviewing Jim Rickards, an American lawyer, economist, investment banker, and best-selling author. Rickards, who released The Death of Money: The Coming Collapse of the International Monetary System, this spring, spoke with Schiff about the global gold markets. What he had to say about China and its steady accumulation of physical gold (reserves now totaling close to 4,000 tons, Rickards speculates) was extremely interesting. Some might say shocking. From the exchange:

Now there’s been a lot of speculation the reason they’re doing this is they want to launch a gold-backed yuan currency to defeat the dollar. That’s not going to happen. That’s not even close. The reason is that the yuan’s not ready to be a reserve currency because they don’t have investable assets. There’s no rule of law. There’s no mature bond market in China. But what they are doing, is creating a very simple hedge position… So you’ve got $4 trillion of paper reserves, most of them U.S. dollars. You can’t dump them. If you’re going to try and sell a fraction… the Treasury market’s big- it’s not that big. If they try and do something more aggressive, the President of the United States can actually stop them just by freezing their accounts. So what you do is buy up a pile of gold. So now, the Chinese want a stable dollar. They would love a stable dollar. But if the U.S. tries to devalue the dollar, tries to cheapen the dollar through inflation- remember, every 10 percent of dollar inflation is a $300 billion wealth transfer from China to the United States. So if you cheapen the dollar with inflation, they lose money on the paper, but they make money on the gold. So they’re building a hedge position. They’re not done yet.

I’ve heard it claimed before that China is accumulating gold to back the renminbi. But Rickards says this isn’t the case. Even more eye-opening than the dollar hedge theory was something he said later on in the interview:

The gold manipulation, by the way, is so blatant at this point, if I were the manipulator I’d be embarrassed… The question is, who’s doing it? And people like to point a finger at the Fed and maybe through the BIS- they have a hand in it. But my number one suspect is China for the reason you mentioned, Peter. If you’re out to buy 3,000 tons, you don’t want the price to be high yet. Maybe later you do. But for now you want the price to be low.


“Interview: Jim Rickards & Peter Schiff Discuss Global Gold Markets [Full Discussion]”
YouTube Video

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

Tags: , , , , , , , , , , , , , ,

Peter Schiff On Direction Of Interest Rates, Housing, And Gold

Last Friday, “crash prophet” Peter Schiff added a new entry to his YouTube video blog- The Schiff Report. The CEO/Chief Global Strategist of Euro Pacific Capital warned viewers that the Federal Reserve is bluffing about raising interest rates. Schiff- who correctly-called the bursting of the housing bubble in addition to the 2008 economic crisis- also touched on the direction of the residential real estate market and gold. On interest rates and housing, he pointed out:

The risk is that the Fed doesn’t tighten at all, which is exactly what’s going to happen, because they can’t tighten. If the Fed actually tightens, the recovery is over. The recovery that is supposedly giving them the confidence to raise rates- it can’t exist if they raise rates. In fact, if the Fed could raise rates, they would have already raised them. I mean, it’s been over five years. They’re still at zero. And they’re saying rate hikes are a year way maybe. Why? If the economy is recovering, why can’t the Fed raise rates? Because if the Fed raised rates, we’d be right back in recession. Because it’s a phony recovery. That’s what people have to understand. It’s not real. It’s only here as long as the Fed can artificially sustain it, which she might. The minute they raise interest rates, that party’s over. The stock market’s going down. The real estate market’s going down.

And by the way, we had a plethora of negative numbers all week for the housing market. You could put a fork in this phony housing recovery, because it’s done. The market is going down. Housing prices are heading back down. Housing activity is slowing. I think a lot of layoffs are coming in construction because this market’s grinding to a halt…

The Fed is bluffing. This is all bark and no bite. It is impossible for the Fed to raise interest rates. If they could do it, they would have already done it. If they raise interest rates now, they destroy the very recovery that the low interest rates created. The problem is, if it isn’t a real recovery, it’s phony. If it was real, it wouldn’t need the Fed to support it. The only reason it does need the Fed’s support is because it’s imaginary. It’s phony. Because the actual economy is getting worse.

What the Fed is doing to goose the stock market, and the real estate market, to create this phony wealth effect, is undermining legitimate wealth creation. All the money we’re borrowing to spend is interfering with legitimate, genuine economic growth. And we’re just digging ourselves into a bigger and bigger hole…

The problem is, we’re going to have the next recession, and the Fed’s still going to be at zero. They’re still going to have this bloated balance sheet. And again, it’s not that the Fed is never going to raise rates. They’re just not going to do it voluntarily. They’re not going to do it as a decision. They’re not going to do it until they have to. And it’s not going to be a strong economy that’s going to force them to raise rates. Because I don’t care how strong the economic data is- they ain’t going to raise rates. And it doesn’t matter how bad the inflation data is- they’re still not going to raise rates. They’re not going to raise rates until the dollar collapses. Until foreigners no longer want to hold the dollar, because they understand the predicament that the Fed is in. They understand that it is QE forever. That it is all just talk. There is no exit strategy. There never was. Because exit is too painful. This is the end game of QE. This is the all in. This is the overdose.

On gold, Schiff predicted:

Janet Yellen is not going to wage war against inflation. She has already surrendered to inflation. It’s just that a lot of people haven’t figured that out yet. So, because people think that Janet Yellen might raise interest rates sooner rather than later because of inflation, they sold gold. If they knew the truth, that Janet Yellen isn’t going to care about the inflation, that’s she’s just going to let it get worse because she is too afraid to challenge inflation for fear of what it will do to the economy, to the stock market, to the housing market, the job market. So she is going to allow inflation to not only continue, but accelerate. And that is what’s good for gold.


“Ending QE is Bad, Not Ending it is Worse”
YouTube Video

By Christopher E. Hill
Survival And Prosperity (www.survivalandprosperity.com)

(Editor’s notes: Info added to “Crash Prophets” page; I am not responsible for any personal liability, loss, or risk incurred as a consequence of the use and application, either directly or indirectly, of any information presented herein.)

Tags: , , , , , , , , , , , , , ,



Christopher E. Hill, Editor
12,451 Visits December 2014
527,017 Visits 11/22/10-12/31/14
Please Rate this Blog HERE

Translate (Allow 1 Minute Per Page To Complete)


by Transposh - translation plugin for wordpress
NEW! Advertising Disclosure HERE
ANY CHARACTER HERE
JM Bullion Reviewed HERE
ANY CHARACTER HERE
BullionVault BullionVault.com Reviewed HERE
ANY CHARACTER HERE
MyPatriotSupply.com Reviewed HERE
ANY CHARACTER HERE
Nitro-Pak--The Emergency Preparedness Leader Nitro-Pak Reviewed HERE
ANY CHARACTER HERE
Food Insurance Reviewed HERE
ANY CHARACTER HERE
CHIEF Supply Reviewed HERE
ANY CHARACTER HERE
bullet proof vests BulletSafe Reviewed HERE
ANY CHARACTER HERE
Survival Titles Save 20% Paladin Press Reviewed HERE
ANY CHARACTER HERE
BUDK Reviewed HERE
ANY CHARACTER HERE
Not all airguns preform the same in colder weather. Click to learn more. PyramidAir.com Reviewed HERE
ANY CHARACTER HERE
Airsoft Megastore Reviewed HERE
ANY CHARACTER HERE
 

Categories

Archives