Peter Schiff No ceiling for gold prices/ Złoto bez limitu-08/2011 PL

Peter Schiff No ceiling for gold prices/ Złoto bez limitu-08/2011 PL


I think the people who are buying Treasuries think it’s a safe haven they’re mistaken and when they figured out they will go to gold but people have to understand what it’s a safe haven from because I keep hearing people on television saying well people aren’t buying gold because of inflation because there’s no inflation they’re buying it as a safe haven gold is a safe haven from inflation that’s what you’re getting safety from it’s an alternative to owning currencies like the dollar or the euro or the N or any other currency where central banks are creating too many so if the if central banks are going to base their currency if you want to store value that will protect you from inflation this safe haven is gold Treasuries are not a safe haven at all maybe they are abundant the Treasury is printing them like they’re going out of style that’s a bubble you know people say there’s a bubble in gold I’ll give you an interesting statistic in mid-2008 before the financial crisis gold was a thousand dollars that was the peak and it fell about thirty percent but it’s now eighty percent higher than it was at its peak in 2008 yet gold stocks are only ten percent higher than they were back then if this was a bubble or Romania you would expect gold stocks to be outperforming the metal because that’s where all the speculative money flows but the fact that nobody has confidence in gold enough to buy these stocks shows that there’s so much fear in the gold market it’s not greed and that’s the antithesis of a bubble so how high do you think gold prices should be I think they’re going higher and you know there’s no I said there’s no floor to these fiat currencies if they keep printing on particularly the dollar so there’s no ceiling to the price of gold but really you know if you look at gold gold is like a thermometer on the economy it’s like if a doctor takes your temperature and you got 105 you can’t he can’t just send you on your way I mean obviously there’s something wrong with you or you wouldn’t have 105 temperature the the gold going at 1800 hours announce going up every day is saying that the economy is sick it’s really really sick yet our leaders are ignoring gold and just keep on doing the same thing as if gold is telling them nothing I want to ask what you think as you say US bonds are not a safe haven and there telling investors the wrong things right now how do you explain then that yields on 10-year treasuries have collapsed to 70 year lows below two percent they’ve collapsed because people are buying them because they think they’re safe haven but they’re wrong and of course central banks are buying them but how’s their safety that 10-year treasury is yielding two percent the government’s own inflation numbers we got CPI this week they show year-over-year prices increased by three point six percent so the yield on Treasuries is negative how do you get safety with a negative yield in fact the yield is pretty biggest you have to pay taxes on that interest and of course the government is lying about inflation inflation is much worse than the three point six percent that the CPI shows i think is closer to ten percent i know what’s interesting is if people remember back to the 1970s when richard nixon imposed wage and price controls it was because inflation got to four percent so we were so worried about inflation at four percent that we did something as crazy as wage and price controls now that was the wrong thing to do but that shows you how concerned we were about inflation of four percent its 3.6 the way the government reports it yet we don’t even care so then are you saying that the whole US bond market is wrong essentially and you’re right absolutely and that’s not gonna be the first time we’re almost everybody has been wrong and I’ve been right oh you know how theater says verse of the entire US bond market you heard it here the market got the tech technology stocks wrong the Nasdaq was up at five thousand the market was valuing Internet stocks sky-high and then they found out they were wrong then the market made the same mistake with real estate and with mortgages you know and or with bonds securitized buy mortgages markets often get it wrong in the short run I guess they figured out and get it right and you get the bursting of the bubble I think people who are gonna lose the most money are the people who are in bonds those are going to people will lose more money in bonds than in stocks by far so when does this collapse well if I knew that you know I wouldn’t be sharing you with anybody I’d be on my yacht the Caribbean ah place of my trades I don’t know exactly when it’s gonna happen but I know it’s gonna happen I got a pretty good track record at detecting bubble and it’s interesting that the people that miss the stock market bubble and mr. real estate bubble think that they see a bubble in gold that’s the one place there isn’t a bubble because gold is reflecting the loss of purchasing power of fiat currencies gold is simply telling you how much money how much value rather dollars are losing euros are losing yen or losing rmb is losing so it’s not a bubble because goals not going up it’s paper currencies that are losing value gold is simply letting you know that that’s occurring do you think you say that the gold prices should show policy leaders that the economy is sick but does all of the run into the bond markets into US Treasuries along with gold show that people want to have cash cuz its end of the day can you can you pay your bills with gold well sure I mean you can pay any bills I mean you know maybe not everybody is smart enough to understand what Gold’s value is but most people would accept gold in exchange for for goods maybe you need silver but if the person who has a good that you want doesn’t the gold you can always sell the gold than somebody else and get to cash because gold is money and it’s recognized around the world everything else is just a poor substitute for for money you and Ron Paul say that Ben Bernanke Federal Reserve Chairman seems to disagree they got into that fight but I want it he never gives anything right so i would be surprised that he’s got that wrong do you think you know I want to ask is Venezuela’s leader Hugo Chavez is taking his gold out of the US and you carry wants to he wants to repatriate it do you think that’s making people worried that there may not be enough physical gold yeah that might be the case they might be worried that some of these depositories have least that gold out and that maybe they don’t actually have it or they’ll have difficulty getting it back because maybe the people they leased it to have sold it and maybe they don’t have the ability to buy it back there could be a lot of counterparty risk so that’s you know people just want to have the gold I mean that’s what our clients you know our client said your Pacific precious metals and your verse of the capital we sell physical gold most of our clients don’t want to own the etfs for that reason they don’t want any counterparty risk they don’t want any uncertainty they want gold that they know that they own

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