Submitted by QTR's Fringe Finance
In our full conversation this week, Peter Schiff and I talk the current state of the U.S. economy, the stock market, the dollar and precious metals. We discuss:
The recent surge in gold prices and whether it will hit $3,000 by the end of the year or potentially $6,000 next year.
Both Schiff and I express concerns about the U.S. economy being "broke," the potential shift toward socialism, and rampant inflation driven by Modern Monetary Theory.
Peter Schiff compares today’s gold bull market to the 1970s, emphasizing that this is the beginning of a new bull market, unlike 1979 when the market peaked.
Schiff argues that while interest rates in 1979 ended the gold bull market, the current trend of rate cuts will continue to fuel gold's rise, highlighting the Fed's inability to combat inflation effectively.
The conversation touches on the inflation-adjusted gold price, suggesting that gold remains undervalued when adjusted for true inflation, which CPI doesn't accurately reflect.
The strange phenomenon of retail investors selling gold during one of its best-performing years is highlighted, attributing this to a lack of confidence and distraction by Bitcoin.
The role of Bitcoin as a distraction from gold investments is discussed, with Schiff noting that Bitcoin has underperformed relative to gold and criticizing Bitcoin as “fool’s gold.”
Schiff predicts a significant fall in the value of the U.S. dollar, exacerbated by trade deficits and foreign central banks' increasing preference for gold over U.S. dollars.
Schiff forecasts a looming crisis in the bond market, where rising long-term yields will signal a loss of confidence in U.S. credit quality, further driving gold’s rise.
The mainstream financial media's neglect of gold’s rise is criticized, with both agreeing that gold’s significance as a monetary metal is being ignored, especially compared to the attention given to stocks and Bitcoin.
We began by acknowledging gold’s impressive rally, and I probed Peter for his insights on where the metal could be heading. He was quick to point out that gold is on track to potentially hit $3,000 by year’s end, and perhaps as high as $6,000 by the end of next year. Schiff’s confidence wasn’t just based on speculation but rooted in historical precedent. As he reminded me...(READ THESE NOTES AND LISTEN TO OUR FULL ONE HOUR CONVERSATION HERE).
QTR’s Disclaimer: Please read my full legal disclaimer on my About page here. This post represents my opinions only. In addition, please understand I am an idiot and often get things wrong and lose money. I may own or transact in any names mentioned in this piece at any time without warning. Contributor posts and aggregated posts have been hand selected by me, have not been fact checked and are the opinions of their authors. They are either submitted to QTR by their author, reprinted under a Creative Commons license with my best effort to uphold what the license asks, or with the permission of the author. This is not a recommendation to buy or sell any stocks or securities, just my opinions. I often lose money on positions I trade/invest in. I may add any name mentioned in this article and sell any name mentioned in this piece at any time, without further warning. None of this is a solicitation to buy or sell securities. I may or may not own names I write about and are watching. Sometimes I’m bullish without owning things, sometimes I’m bearish and do own things. Just assume my positions could be exactly the opposite of what you think they are just in case. All positions can change immediately as soon as I publish this, with or without notice and at any point I can be long, short or neutral on any position. You are on your own. Do not make decisions based on my blog. I exist on the fringe. The publisher does not guarantee the accuracy or completeness of the information provided in this page. These are not the opinions of any of my employers, partners, or associates. I did my best to be honest about my disclosures but can’t guarantee I am right; I write these posts after a couple beers sometimes. I edit after my posts are published because I’m impatient and lazy, so if you see a typo, check back in a half hour. Also, I just straight up get shit wrong a lot. I mention it twice because it’s that important.
