Jun 9, 2016

This Trade Is Just Getting Started

This trade is just getting started because the U.S. Dollar is falling and gold is rising when people still expect the Federal Reserve to raise interest rates. Imagine what is going to happen when they expect them to cut. (Newmont Mining (NEM), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), SPDR Gold Trust ETF (GLD), Barrick Gold (ABX))

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

We Are Going Into A Currency Crisis

It is going to be awful. Do you remember the financial crisis of 2008? You think that was bad? This is going to be worse. But it will not necessarily be concentrated in the stock market. I think that the Government, the Federal Reserve, their main goal is to make sure that the stock market does not collapse again, to make sure that the real estate market does not collapse again. And they may succeed but only by sacrificing the U.S. Dollar.

We are going into a currency crisis and this crisis will be much bigger than the financial crisis. The impact it is going to have on the average American, on their standard of living is going to be much more pronounced. (iShares Dow Jones US Real Estate (ETF) (IYR), Nasdaq 100 Index ETF (QQQ), SPDR S&P 500 Index ETF (SPY), iShares Russell 2000 Index ETF (IWM), SPDR Gold Trust ETF (GLD))

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Jun 8, 2016

Crude Oil Prices Close Above 50 Dollars A Barrel

Oil prices closed above 50 dollars a barrel for the first time in a year, since last summer, June or July. This is not good news for the American consumer but its not just gasoline prices that are going higher, a lot of prices are going up.

Related ETFs: Energy Select Sector SPDR ETF (XLE), United States Oil Fund LP ETF (USO), Nymex Crude Oil Futures

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Jun 7, 2016

There Is A Bubble In Sovereign Bonds

The reason people are buying European bonds at negative yields its because its a bubble.

During the real estate bubble investors were buying investment properties that had negative cash flows. Meaning that the rents collected were not enough to cover the cost of owning the property. Now, why were they doing that? Its because they believed that the price of the real estate would go up despite the fact that it had a negative cash flow. They thought that there would be a greater fool who would pay an even higher price and endure an even bigger negative cash flow. So it was the greater fool theory.

That is what is going on now with European sovereign bonds trading at negative rates of interest except the greater fool is the European Central Bank (ECB). People are buying these bonds not because they are dumb enough to hold them to maturity. Nobody going to hold a negative yielding bond to maturity, you are guaranteed to lose money.

People were buying these bonds to sell, they think they will find a greater fool willing to pay an even higher price and get an even more negative yield. That fool is the ECB with their bond buying program and they will buy these bonds regardless of price. This is a gigantic bubble!

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Jun 6, 2016

Why The Fed Will Not Raise Interest Rates

The reason why the Fed will not let interest rates go up is because if they let interest rates go up, we cannot afford to pay the interest on our debt and we would have to default. To avoid the embarassment of a default they keep interest rates artificially low. But I think its better to be honest and default than going through a currency crisis that we are heading to.

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

Jun 2, 2016

Markets: I Am Not Short U.S. Treasuries

I am not short U.S. Treasuries but I am short the U.S. Dollar. I am long foreign assets, I am long foreign stocks, I am long gold stocks. Look how much gold stocks are up this year. (Newmont Mining (NEM), Goldcorp (GG), Barrick Gold (ABX), NovaGold (NG), Market Vectors Gold Miners ETF (GDX), Market Vectors Junior Gold Miners ETF (GDXJ), iShares MSCI Emerging Markets Index ETF (EEM))

Peter Schiff is an American businessman, investment broker and financial commentator. Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc.

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