January 02, 2009
– Comments (8)
Couldn't agree more. Buy Gold and silver first, then oil and other commodities. Thanks for the vids, and Happy New Year!
I guess my concern with Peter Schiff's objectivity is that his company, Euro Pacific Capital, is really pushing hard to sell gold stored at the Perth Mint in Australia. Basically, he's telling people to buy gold and whipping them into a panic, then his company takes $10,000 of your money and gives you a piece of paper that says that you own some gold in Australia.
The second video above also made me lose some confidence in Peter Schiff. He basically wants to put the entire blame for this financial crisis on the government and absolves the financial companies that traded in CDOs and mortgage-backed securities by saying they only did it because the government let them.
I think he was right in 2006, but I don't know if he's right today.
Not to mention Schiff was dead wrong on calling for people, including his clients, to bail out of US stocks and load up on Asian and emerging markets back when he made his semi-correct call in 2006. You dont see him bragging about losing 50-70% of his clients money though do you?
In a deflation/depression setting like the one we are in if you go all in on gold you will lose your ass.In the bear market of 1929-1933 only ONE asset remained strong and came out stronger at the end. The US dollar bill.Every other asset under the sun including gold, silver and most especialy real estate, saw losses of 60% to 95%. Please dont think I am anti gold by any means. Just be prudent and treat gold for what it is, another commodity. Dont over do it.
People will be at the point over the next year where they will be selling anything and everything, including gold and silver, to raise cash to pay the bills and buy food. Deflation of the type we are and will be seeing has nothing to do with the money supply and everything to do with a catastrophic collpase in the demand side of the demand/supply chain and everyone cutting prices to try to make a sale.
Dont get me wrong. I am very bearish on the financial markets, but I am extremely bullish on America and its people. We will get through this just as we always have. But it may get a bit ugly before it gets better.
Nice, johnw. You are right that people who have gold and need to buy food will be willing to sell it for food. Schiff is also pro food.
However, you forget that gold was seized by the government in a treasonous turn of events, and then FDR pushed inflation to 300% in one year by rapidly devaluing the dollar against the seized gold and churning out the "liquidity."
Inflation is always possible when the government, which has absolutely zero (and negative) incentive to allow their debt to increase in value, has absolute control over the money supply. There will always be demand for something (food is a salient example), and the money supply can be increased relative to the demand for everything. Home, stock, bond, and commodity prices may stay flat or fall while food prices go up 800%or something like that, but there will always be inflation as long as the government has no reason to allow the dollar to appreciate, and no restriction on its inflationary behavior.
Also, the American people may not be what it once was. If children are raised to be lazy, ignorant, and selfish, the greatness of their parents or grandparents won't magically trickle down. It could be rediscovered perhaps, but Rome fell, and the Arab-Muslim Empire is not what it once was -these things happen.
Peter is absolutely right on all points. If you wonder where his theories are coming from, you'll want to look to Austrian Economic theory, http://mises.org/literature.aspx
The one good thing about people still disagreeing with Peter indicates there is still time to adjust for what he is predicting. Once they all finally all agree it will be too late and we'll be in the midst of an economic disaster.
Can you believe how rare it is for people to believe in economic freedom?
Excellent videos, Sinchy.
Gold is worthless, without gunpowder....