If The Fed Raises Interest Rates Everything Is Going To Collapse

I do not believe that if we raise interest rates everything is going to be fine. I recognize that if we raise interest rates everything is going to collapse. (SPDR S&P 500 Index ETF (SPY), iShares Russell 2000 Index ETF (IWM), SPDR Dow Jones Industrial Average ETF (DIA))

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

Bond Yields Are Moving Up

Another week when the Dollar remained relatively firmly bid, the Dollar Index closed just above 98. Gold is not really going down but its not really going up either. What is going up are bond yields, long-term bond yields just made a 4-month high with the 30-year yield at 2.55% and the 10-year Treasury yield just below 1.80% and this despite the fact that the economic news during the week, on balance, were generally weaker than expected.  (SPDR Barclays Capital High Yield Bnd ETF (JNK), iShares Barclays 20+ Year Treasury Bond ETF (TLT), U.S. Treasuries, iShares iBoxx $ High Yid Corp Bond ETF (HYG))

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

The Only Thing That Is Bad For Gold

The only thing that is bad for gold is if Janet Yellen goes Paul Volcker and really decides to jack interest rates up so that real interest interest rates spike up. That would be negative for gold. Just a quarter point interest rate hike? The inflation is going to be rising faster than any Fed rate hikes. The Federal Reserve is going to be behind the curve the entire time. (SPDR Gold Trust ETF (GLD), Market Vectors Junior Gold Miners ETF (GDXJ), Market Vectors Gold Miners ETF (GDX), Newmont Mining (NEM), Barrick Gold (ABX), Goldcorp (GG), NovaGold (NG), Hecla Mining (NL))

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