Why Wall Street Is Wrong About Gold Stocks

Peter Schiff in a recent article explains why Wall Street is wrong about gold stocks:

"When they see the price of gold going up, they’re like, ‘Well, why is the price of gold going up? I mean, what’s the point. The economy is great. There’s no inflation. The Fed is raising rates. Nobody’s buying gold. If it’s going up, it’s just going to go down.’ And so nobody sees the urgency to buy gold stocks the way they see the urgency to maybe buy oil stocks. But this is because they’re wrong. They think there is nothing to worry about. There is everything to worry about. There are so many things – there have probably never been more things to worry about. And the crazy thing is people aren’t worried about any of them. It’s probably because of the mania, because of the bubble. When you get into that mentality, nothing worries you.”

Related stocks: Goldcorp (GG), Newmont Mining (NEM), Barrick Gold (ABX), NovaGold (NG), Market Vectors Gold Miners ETF (GDX)

Stock Market: The Hidden Risks

In a recent article with Seeking Alpha, Peter Schiff highlights the hidden risks that might disrupt the stock market in th near future:

"The stock market is rising despite the fact that there are very, very negative factors that are building, that are hiding in plain sight, that everybody is ignoring.”

"Everybody thinks the economy is in great shape because they think the Fed solved the problem. No, they didn’t. They made the problem much worse! They made the problem that they created worse. But the people who think they solved it are the same people who didn’t understand it before. And they got blindsided in ’08 and they’re going to get blindsided again because they never learned from their mistakes.”

Related trading instruments: SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ)

Inflation Is Bullish For Gold

The stock market should be affected by higher interest rates but no, they don't care but they somehow think it's going to be bad for gold. But the reality is higher inflation is great for gold, that's why people buy gold as it's a hedge against inflation. So the more inflation the more demand there is for gold.

Related trading instruments: SPDR S&P 500 Index ETF (SPY), iShares Russell 2000 Index ETF (IWM), SPDR Dow Jones Industrial Average ETF (DIA), SPDR Gold Trust ETF (GLD)

Stock Market: Heading For A Crisis

This is the best start since 2006 and of course people who were buying stocks in 2006 had no idea of the magnitude of the financial crisis that would hit the market in 2008 well the same people are even more clueless today because the crisis that we're heading for is going to be much much bigger much worse than the one in 2008. (SPDR Dow Jones Industrial Average ETF (DIA), SPDR S&P 500 Index ETF (SPY), Nasdaq 100 Index ETF (QQQ), iShares Russell 2000 Index ETF (IWM))

Crude Oil: We Can See $80-100 This Year

I've been talking about oil prices going up on this podcast. This is the highest oil has closed over two years and if we get above 62.75 which is less than a dollar away that would be the highest closed in oil since December of 2014. But it was all between July of 2014 in December that oil prices collapsed from above $100 a barrel to down below 40 and so I think once we get above 63 for example, I think we got clear sailing up to 80 to $100 oil and I think we can do that this year!

The Implications of the US Dollar Weakness

On a recent tweet, Peter Schiff highlights the recent moves in crude oil and gold and the implications of the US Dollar weakness going forward: 

"Gold closed above $1,300 an ounce for the 1st time in 5 years, oil closed above $60 per barrel for the 1st time in 4 years, and the U.S. dollar fell the most in 14 years. Interesting that no one is worried about what this implies for inflation or interest rates in 2018!"

Related: SPDR Gold Trust ETF (GLD), United States Oil Fund LP ETF (USO), Nymex Crude Oil Futures