gold prices

Peter Schiff Predicts Resumption Of Dollar Decline, Gold Rally This Week

It’s been a while, but Euro Pacific Capital CEO Peter Schiff added a new entry to The Schiff Report YouTube vlog on Saturday. Schiff, who correctly-called the housing bust and economic crisis last decade, talked about a number of subjects, including his belief that the Federal Reserve has no intention of raising rates in March, “a lot” of dollar selling is coming, and the gold rally will resume. From the video:

The reason the Fed didn’t give a clue that it might be raising rates in March, is because it has no intention of doing so…

I think the trade deficits are going up. I think the budget deficits are going up. Certainly to the extent that we get some tax cuts. We continue to get more government spending. If we get more government spending under Trump on the military, on the border, on infrastructure. Rising trade deficits. Rising budget deficits. Rising inflation. All of this is going to be a big negative for the dollar. And of course, everybody was so loaded up long the dollar, I think the people who own the dollar- there’s a lot of dollar selling that’s coming. And I think the dollar bulls are going to end up losing a lot of money…

Since the beginning of this year the Dow is barely up more than 1 percent. You can contrast that to the price of gold which is up 6 percent so far this year. Look at gold stocks. Gold stocks are up 17 percent as a group so far in 2017. 17 percent. Everybody’s talking about the Dow. No one’s talking about gold stocks. In fact, gold stocks were the number one performing sector last year, by far. Wasn’t even close. And they’re already by far the number one performing sector this year. But nobody really wants to talk about it…

I think we’re going to see a resumption of the dollar decline and gold rally next week…


“Rising Unemployment Is Just The Excuse The Fed’s Been Waiting For”
YouTube Video

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

(Editor’s notes: Info added to “Crash Prophets” page. A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is 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 contained herein.)

Schiff’s latest book…

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James Rickards: ‘Fed Will Have To Go Dovish’ And Bonds, Gold Will Rally

Back on December 27, James (Jim) Rickards, an American lawyer, economist, investment banker, and best-selling author appeared on CNBC TV’s Squawk Box (Asia) and made this prediction about Trump’s first term in the Oval Office:

I definitely see a stock market correction, perhaps a disorderly one… I’m not sure the Fed is ready to cut rates yet. But I expect it will raise rates in March. I think that’s on track. But beyond that, we’re going to go into a recession or the stock market is going to have a very severe correction. Either one of those will cause the Fed to back-pedal.

On January 12, James Rickards elaborated on this forecast on The Daily Reckoning website. He informed readers of “Be Prepared for a Violent Fed Reversal”:

My short-term expectation is the Fed will raise rates in March. My intermediate-term expectation is that the market is going to be disappointed with the stimulus, the Fed tightening is going to be at the wrong time, the stock market’s going to “fall out of bed,” the economy’s going to slow down, and the Fed will have to go dovish.

At that point you’re going to see rallies in bonds, rallies in gold, and a decline in the stock market…

(Editor’s note: Bold added for emphasis)

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

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is 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 contained herein.)

Source:

Rickards, James. “Be Prepared for a Violent Fed Reversal.” The Daily Reckoning. 12 Jan. 2017. (https://dailyreckoning.com/be-prepared-violent-fed-reversal/). 23 Jan. 2017.

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Sustained Effort To ‘Talk Down’ The Dollar Begins?

Gold and silver prices are surging today, no doubt related to statements made by President-elect Donald Trump concerning the strong U.S. dollar. Mark DeCambre reported on MarketWatch this morning:

The buck stops with Donald J. Trump. The president-elect, who has developed an early knack for challenging U.S. corporations via Twitter, reserved his most biting comments for the U.S. dollar, which vaulted 4% higher at its peak in the wake of the real estate billionaire’s Nov. 8 election victory over Hillary Clinton.

In a Friday interview with The Wall Street Journal, Trump said the U.S. currency, which touched a more-than 14-year high about two weeks ago, has gotten “too strong,” especially considering the China’s yuan is “dropping like a rock.” “Our companies can’t compete with them now because our currency is too strong. And it’s killing us,” he told WSJ…

(Editor’s note: Bold added for emphasis)

Trump’s comments may just be the opening volley in a sustained effort to “talk down” the greenback. Roger Blitz pointed out over on the Financial Times (UK) website early this morning:

Economists and currency analysts have speculated about the risks a robust US currency, which is trading at a 14-year high against a basket of its peers, poses to the president-elect’s growth strategy, and predicted that the incoming administration in Washington would soon start talking down the dollar.

The first inklings of that tactic emerged in an interview Mr Trump gave to the Wall Street Journal…

That was echoed by Anthony Scaramucci, a senior member of Mr Trump’s economic advisory council, in remarks made on Tuesday at the World Economic Forum in Davos about the US Federal Reserve. “The Fed has to be independent and we have to be careful about the rising currency,” Mr Scaramucci said…

(Editor’s note: Bold added for emphasis)

So, “all systems go” with precious metals then?

Maybe not, as certain “crash prophets” like Jim Rogers and Martin Armstrong believe it’s possible the U.S. currency might get even stronger due to foreign money pouring into the country to escape turmoil elsewhere, creating headwinds for any gold and silver price “lift-off.”

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

(Editor’s note: A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is 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 contained herein.)

Sources:

DeCambre, Mark. “Trump sends shiver through stock market with shot across dollar’s bow.” MarketWatch. 17 Jan. 2017. (http://www.marketwatch.com/story/trump-comments-on-too-strong-dollar-send-shivers-through-stock-market-2017-01-17). 17 Jan. 2017.

Blitz, Roger. “Dollar retreats on Trump’s concern over currency’s strength.” Financial Times. 17 Jan. 2017. (https://www.ft.com/content/b921b994-dca3-11e6-9d7c-be108f1c1dce). 17 Jan. 2017.

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Peter Schiff Predicts Gold ‘Going A Lot Higher’ As Trump Fed Draws From ‘Well Of QE’

In a post yesterday about Swiss-born investment advisor/money manager Marc Faber, I noted that the the publisher of the monthly investment newsletter The Gloom Boom & Doom Report reportedly told atendees at a recent investment conference that the U.S. economy “is not doing well” and that he predicted U.S. President-elect Donald Trump will be a “Keynesian” and money printer. This reminded me of an appearance last week by fellow “crash prophet” Peter Schiff on the CNBC TV program Futures Now in which the economist, financial broker/dealer, and author talked about a Federal Reserve under a Trump administration. Schiff warned viewers:

I think they’re going to go back to the same monetary stimulus that failed and is the reason that Donald Trump was elected. A lot of people believe that simply electing Donald Trump solves all the economic problems that are the reason that he was elected. But the problems haven’t been solved and they can’t be solved unless we’re willing to bite the bullet and allow a painful economic restructuring that is going to be necessary to pave the way for real economic growth. But I still think we’re going to go back to the “well of QE.” And that we’re going to get more stimulus. We’re going to get another quantitative easing. And I still believe that the Fed might reverse course and start cutting rates again, even as inflation accelerates…


“Huge bond bear market just beginning”
CNBC Video

The CEO of Euro Pacific Capital mentioned earlier in the segment that “inflation is accelerating at a much faster pace than the Fed is nudging up interest rates.” Within such an environment, gold could shine. Schiff added:

Gold benefits from inflation. The only way that you might undermine gold with inflation is if you have a Paul Volcker-style reaction from the Fed where they agressively raise interest rates to try and restrain it. And that’s not even conceivable that we could do that due to the enormity of the debt that we have. So if people understand that yes, we’re going to get more inflation, but there’s nothing the Fed can do about it but make the problem worse, then people see that there’s a lot of reasons to be buying gold. And certainly 1,200 has acted as pretty solid support. So the fact that we pulled back from 1,320-1,330 on the eve of the Trump victory back down to this support I think provides a good buying opportunity for people to buy more gold. Because I do think it’s going a lot higher during the Trump presidency.

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

(Editor’s notes: Info added to “Crash Prophets” page. A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is 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 contained herein.)

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Marc Faber Bullish On Gold, Gold Shares, Platinum

Swiss-born investment advisor/money manager Marc Faber was on the CNBC TV show Trading Nation yesterday. The publisher of the monthly investment newsletter The Gloom Boom & Doom Report talked about potential investment opportunities, including precious metals. Dr. Faber told viewers:

As I said last year, precisely a year ago, when Barrick was around $6 and Newmont Mining around $17, I think that gold shares, after the recent correction, are still attractive. Don’t forget, gold has been talked down a lot recently, but the fact is when you say that gold is a currency, what has been the strongest currency on Earth this year? It’s up 11 percent in dollars, 32 percent in British pounds, and in Euros 14 percent. So I don’t think it’s been doing all that badly, even following the recent correction…

(Editor’s note: Bold added for emphasis)

After saying the U.S. economy “is not doing well” and predicting President-elect Trump will be a “Keynesian” and money printer, Faber added:

I would buy gold and platinum– they are depressed.

(Editor’s note: Bold added for emphasis)


“Marc Faber on stocks, bonds, gold and more”
CNBC Video

Regular readers of Survival And Prosperity know that Marc Faber has been a long-time gold bull. Covering the V International Central and Eastern European Investment Conference in Warsaw, Poland, last Friday (where Faber was the keynote speaker), the Hungarian financial news website Portfolio reported:

Faber is optimistic for gold, arguing it should form a 20% component of a good investment portfolio. As a reserve, he prefers holding bullion to purchasing indirectly via ETFs, but maintains that exchange-traded gold funds are not a bad thing either…

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

(Editor’s notes: Info added to “Crash Prophets” page. A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is 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 contained herein.)

Source:

“Marc Faber: Current era of negative rates ‘a historic first.'” Portfolio.hu. 25 Nov. 2016. (http://www.portfolio.hu/en/economy/marc_faber_current_era_of_negative_rates_a_historic
_first.32147.html). 30 Nov. 2016.

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Peter Schiff: ‘I Would Rather Go Into The Election Long Gold, Short The Dollar As My Main Trades’

Yesterday I spotted economist, financial broker/dealer, and author Peter Schiff on the RT America show Boom Bust. Schiff, who correctly-called the housing bust and economic crisis in the last decade, talked about how the financial markets might react to either Hillary Clinton or Donald Trump winning next week’s U.S. presidential election. He told viewers:

Well, I think the markets will react negatively to a Trump victory because there’s more uncertainty surrounding what a Trump presidency would look like. I mean, you say, “Well, with Clinton it’s the devil you know.” But I think in this case “the devil you know” is pretty bad. I’d rather take a shot at the one that we don’t. But I think the markets will be worried about what it might mean and I think the markets will sell off. I think gold will rally. I think the dollar will sell off. But longer term- and of course traders don’t think about the long term, they’re just trading for what’s happening right now- long term, I think a Clinton presidency is much worse for the U.S. economy and therefore ultimately much worse for the U.S. stock market. But in the short run, we have a bubble. And all people are concerned with now, at least traders, are what is going to happen to keep the air from coming out of that bubble. And nobody really wants to challenge the status quo. They want to continue this cozy relationship between the government, the Fed, and Wall Street. And Hillary Clinton means that they will continue it as long as they can. And a Trump presidency really throws a monkey wrench into that because nobody really knows what it means…

Answering a question about how investors should position themselves, Schiff said:

I would rather go into the election long gold, short the dollar as my main trades. And the stock market doesn’t seem as interesting a trade to me as currencies and metal.,,

(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. A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is 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 contained herein.)

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Peter Schiff: ‘This Is A New Leg Of The Gold Bull Market’

Economist, financial broker/dealer, and author Peter Schiff was interviewed by Kitco News Editor-In-Chief Daniela Cambone last Friday out at FreedomFest in Las Vegas. Schiff, who correctly-called last decade’s housing crash and the global economic crisis, believes gold is entering a new phase in a secular bull market that began back around the turn of the millennium. He told viewers:

I think gold is not only going to re-test the highs from 2011 when it was close to $1,900, but it’s going to surpass those highs and move into much higher territory

I think this is a new leg of the gold bull market. I mean gold’s been in a secular bull market since 2000, 1999-2000. We had a cyclical bear market that I believe ended with the Fed hiked rates in December. And now we have the new leg of the bull market, which I think potentially could be an even bigger leg than the first leg, which saw gold go from sub-$300 to close to $2,000. So if this leg is bigger than that, you can just imagine how high the price might go.

(Editor’s note: Bold added for emphasis)


“We’ve Entered a New Leg of a Gold Bull Market”
YouTube Video

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

(Editor’s notes: Info added to “Crash Prophets” page. A qualified professional should be consulted prior to making a financial decision based on material found in this weblog. If this recommended course of action is not pursued, then it must be understood that the decision is the reader’s and the reader’s alone. The creator/Editor of this blog is 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 contained herein.)

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