Peter Shiff has an interesting view on being bullish about gold. He wrote a book “How an economy grows and why it crashes”.
No matter how much money Europe will borrow, they will print money and devalue the Euro. Instead of gold going to 5000, it might go to 10000 if this keeps going the way it is.
US Dollar relied sharply against the other currencies. Gold is the best arbitrator of the dollar’s value. Gold is safety, it’s money – that’s what’s behind the demand. The economy is not growing, it’s a disaster. Our debt is growing much faster than our GDP.
It is impossible for the economy to grow, we have to start saving money and invest. What would be the effect on the global economy if the Chinese devalue their currency? Do they have to let it go and cut the cord?
Once China stops subsidizing US Debt, it’s a big problem for America. It’s inevitable that this happens rather sooner than later.
The relationship between Gold and Dow will be 1:1, just like it was in 1920 and 1980.
The Dow Jones average was almost 50% higher than the price of gold on average in 1980. Once again, Schiff is wrong. “Gold could hit $10,000.” Anything COULD happen; but gold hitting 10,000 isn’t one of them. It hasn’t even reached 20% of that figure.
Peter is using logic that one can learn from basic macroeconomic principals 101. I learned all of this in undergrad. But I gotta say his accuracy is so dead on, its scary. Yet to this day when he speaks on business networks, they still laugh at him like he is lunatic.
Schiff is a logical man who understands monetary history. Gold is in a bull market, and the fiat dollar is dying. There is no historical example of a fiat currency like the dollar NOT dying. The signs of the dollars death are here now. Buy physical gold and silver.
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