Gold: Best Quarter In Over 30 Year!

Gold had its best quarter in better than 30 years! Gold was up more than 16 percent in the first quarter. Imagine being short that especially with the amount of leverage hedge funds use. This was the first time ever that the hedge funds were net short, they ended last year net short gold! (SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Newmont Mining (NEM), Goldcorp (GG), 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.

The Pain Trade

At the end of last year, everybody with an hedge fund was long the U.S. Dollar and short the Euro, short the Yen, short the Australian Dollar, short the Canadian Dollar, you name it. Some of these guys were short the Chinese Yuan. The Yuan had a pretty good quarter too, the strongest quarter in 2 years. So everybody who was long the U.S. Dollar and short another currency got killed in the first quarter. The on ly people that lost more money than the people shorting the U.S. Dollar were the people who were shorting gold!  (SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX))

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

Markets: Not Investing In U.S. Stocks

First of all, remember, the U.S. stock market is only up (YTD) in dollars but in almost every other currency in the world the U.S. stock market is down. So, I would caution people against investing in U.S. stocks because I think the Dollar is going to fall a lot faster than U.S. stocks will rise.

Related Exchange Traded Funds: SPDR S&P 500 Index ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), iShares Russell 2000 Index ETF (IWM), Nasdaq 100 Index ETF (QQQ)

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

Yellen`s Dovish Speech is Bullish For Gold

Janet Yellen gave a speech in front of the Economic Club of New York and this is probably one of the most dovish speeches, if not the most dovish speech she ever gave. As a result of this speech the price  of gold was up about 20 dollars on the day. (SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Newmont Mining (NEM), Barrick Gold (ABX), Goldcorp (GG))

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 Fed Cannot Raise Interest Rates

If the Federal Reserve tries to raise interest rates we will have a worse financial crisis than the one they caused in 2008. And so you cannot say that this is a success, it is a complete failure but people just do not know it yet because the high has not worn off. (Select Sector Financial Select Sector SPDR ETF (XLF), SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY), 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.

The Recent Gold Sell-Off Explained

When a market does not rally on good news it generally means it is overbought or ready to go down. And the people might have jumped on the failure of gold to sustain a big rally on what was perceived to be good news for gold as bad news. So that might be one of the reasons that you have the selling. To me that is a non event.

I do not buy gold because I am worried about a terrorist attack, it has nothing to do with the reasons I buy gold. I would not rush to buy gold because there was a terrorist attack. Why would I? Because when the attack is over the price goes back down. So it does not make any sense.

The real reason I buy gold  has to do with inflation, the central banks creating it, artificially low interest rates, negative interest rates, quantitative easing, all of these things.

Related trading instruments: SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX), Newmont Mining (NEM), Goldcorp (GG), Barrick Gold (ABX), NovaGold (NG)

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