Europacific Capital’s Peter Schiff holds forth on the gold market in this 20-minute video from Saturday, April 13, 2013.
Although he sees a “rough ride” this coming week, he is confident in the longer term prospects of gold as the ultimate safe haven. Not U.S. stocks.
“Hang onto your gold,” Schiff advises. “Use these dips as a buying opportunity” especially if one does not have any. Schiff also believes other central banks will make good use of the current drop in gold prices to increase the percentage of gold to their current foreign exchange reserves while decreasing their exposure to the weakening U.S. dollar and U.S. government debt instruments, the Japanese yen, the euro and other now very bloated fiat currencies.
Schiff believes as we do here at GGR that the Fed, the ECB, the BoE, the BoJ and the other central planners and central banks will not learn from their past mistakes. They will instead continue to pile on ever more debt, trying to “cure” a now global solvency crisis – the product of there no longer being any checks and balances on government money printing and currency debasement – the role that gold used to play before the last vestiges of it were severed from the U.S. dollar in 1971.
Since then there has not been any national currency tied to gold, making gold itself the only real hard currency, the only real money left in the world.
Schiff notes the call by Goldman Sachs to short gold as the primary trigger of this week’s gold selloff and laughs off the panicky news that Cyprus may be made to sell (about 10 tonnes of) its gold as part of its doomed attempt to remain in the E.U.
Schiff concludes with “This is the best environment for gold I have ever seen. Despite how good the fundamentals are you also have the most negative sentiment I have ever seen for the price of gold or for gold in general coming from investment professionals. That has all the makings for a huge bull market run, so don’t miss out.”
Calling the U.S. stock market reaching new nominal highs “an illusion,” Schiff warns.