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Peter Schiff - Economy Headed Over Cliff, Gold to Go Higher
With gold and silver on the move once again and stock markets gyrating, today King World News interviewed Peter Schiff, CEO of Europacific Capital. When asked about recent weakness in the metals and where they are headed from here, Schiff stated, “It seems like we are trying to retest the lows that we put in a couple of days ago. The metals had a snapback rally, but I don’t think there is that much downside in gold and silver from here. If you look at the long-term trend line in gold, the trend line is around $1,500, so we could go there or maybe slightly below that, but it would surprise me if we had a meaningful drop below those levels.”
© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
September 29, 2011
Peter Schiff continues:
“Silver, I still think there’s a lot of support in the current area. Right now it’s back below $30 again, but silver is still above what it traded at on Monday. The stock market is coming down, the Dow is rolling over again, there is a lot of pressure on markets and the US dollar is strengthening.
Anything could happen in the short-run, but in the long-run, gold goes a lot higher. Everything that is happening right now that is pushing the price of gold down, is actually bullish for the price of gold. That is why long-term the gold price will be higher.
We are going to fall off the edge of a cliff, it’s just a different cliff than most people are looking for. I don’t think the stock markets are going to fall off the edge of a dollar cliff, or nominal cliff, but the US economy is going over the cliff. When we see an eventual precipitous decline in the dollar, you will see consumer prices rising and interest rates rising.
We have this completely phony economy going, this bubble economy, it is still going to deflate and that hasn’t happened yet. The world is trying to keep the air in it, but ultimately the air will escape....
Continue reading the Peter Schiff interview below...
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“We had the collapse in 2008 and we could have it all over again, I mean history could repeat itself exactly the way it did last time. I think we could go below 10,000 on the Dow, I’ve been saying that for quite some time and that would be (roughly) another 1,000 Dow points down.
We could drop 1,000 points, I just don’t think we are going to go back down to 6,000 or whatever the low was. It’s possible, I just don’t think it’s the most probable scenario.”
When asked about the mining shares, Schiff replied, “I think they will head higher, even though they are going down right now. The technicals in the mining stocks still look pretty good longer-term, just like the bullion. I also think the technicals started improving for the miners in this most recent move vs bullion. I’ve been slowly buying more mining shares, partly because I already have a sizable position.”
When asked about the US dollar, Schiff stated, “The dollar has been rallying, but I don’t think it should be. The dollar is a risky asset. People are trying to hide out in dollars, in Treasuries, which are just future dollars, but I think that’s ultimately the riskiest place to move. These people who are buying dollars are making a mistake. People bought dollars in 2008, early 2009 and if they held them, they obviously lost a lot of money.”
© 2011 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
Eric King
