Posted on 04/14/2013 10:21:02 AM PDT by Diana in Wisconsin
I had the opportunity this afternoon to connect with Peter Schiff, CEO and Chief Global Strategist of Euro Pacific Capital. It was a fascinating conversation, which took place while gold was absolutely collapsing.
During the interview, Peter explained that today’s sell-off, triggered by a Goldman Sachs sell recommendation was based on the “false idea” of European Central Bank gold sales hitting the market. Instead he explained, gold is preparing its move “from weak hands to strong hands”, before heading to new all-time highs.
When asked his thoughts on the complete panic in the market this afternoon, Peter commented that, ”Gold had [previously] sold-off on false anticipation of [economic] recovery bringing an early end to QE. But when Goldman Sachs came out with the sell recommendation…sentiment was already negative…so I think there’s a lot of stops being hit [right now]…[However], the lower prices will create an opportunity for buyers…wanting to accumulate large positions without moving the market. The only way to do that, is to have a lot of selling...Goldman Sachs certainly could have done a lot of favors for people interested in accumulating gold, because now you’ve got the selling that makes [it] possible.”
With respect to Cyprus’ selling of its gold reserves, Peter said that,“The European community is trying to force Cyprus to sell-off its gold…and now you have the anticipation that other highly-indebted European nations like Greece, Spain, Portugal, and Italy, that [all] have lots of gold, [will have to do the same]. Portugal has I think 90% of it’s reserves in gold—that’s about the highest in the world…[So] these countries [being] forced to sell their gold has really [spooked] the market, and people are selling in anticipation of this avalanche of selling by European central banks…[but] that’s a false idea…The reality is none of that gold is going to be sold into the ‘market’…[because]the ‘buyers’ will be other central banks.”
According to Peter those ‘other’ central banks, will be the “strong-hand” central banks of emerging economies. The indebted Western countries he indicated, “[Are] going to be forced to liquidate…[and] what’s going to happen, is that broke countries are going to be selling off their gold to ‘rich’ [BRIC] countries.”
He further noted that, “Moving gold from weak hands to strong hands is very positive for the gold market…[and] when people realize where the gold ends up, [they're] going to scramble to buy back what they’ve sold.”
As a concluding remark on the gold price, Peter indicated that, “We have to get through this sell-off and [then] I think we’re headed [to] new highs. I’m surprised at the degree to which we’ve already sold-off, but I don’t think that changes the fundamentals…the bigger the sell-off is, the bigger the [subsequent] rally is going to be.”
The real question is whether the gold claimed to be at the Fed is really there, or whether it’s gold plated tungsten. When the Germans wanted their gold back, the answer was pretty much ‘sure, later.’
Exactly.
Whats the conversion, is it $1.10 of junk per ounce of silver?
I don’t know. I’ve never had to cash any of it in. Yet. :)
Gold is at 1438 right now. Down 63.00 Yikes
About $1.40 is one ounce assuming it’s not too circulated. Out of the mint, 90% silver is .72 oz per dollar, except if it’s a silver dollar then it’s about .77 oz.
Getting hammered. (gold & silver, not me!)
Easiest site to see the numbers is apmex.com
or kitco.com
Silver and gold coin margins are down....due to lower prices. On percentage basis silver coin margin seems down for sure
Forget that ...silver coin American Eagle margins are up on a % basis
Just shows that as the paper gold & silver markets get slammed, the clever peasants in America are taking advantage of lower PM prices to stock up on the physicals. Same as the ChiComs Russia India and other BRIC countries are and their citizens are
thats all I can offer except surprisingly, "war nickles" they are 35% Ag. today, they are worth 1.33 fed reserve notes.
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