Posted on 09/24/2009 7:37:14 AM PDT by madison10
Unlike the "legitimate bull markets" of many foreign markets, Peter Schiff believes the U.S. is merely experiencing a "rally in a bear market," and is lagging the rest of the world "for a reason."
The worst is not over, according to Euro Pacific Capital's Schiff, who predicts the Dow will fall another 90% from current levels when measured against gold.
A longtime dollar bear and gold bull, he foresees gold hitting $5000 per ounce "in the next couple of years," and predicts the Dow and gold will trade on a one-to-one ratio vs. the current level of around 9.7-to-1.
Schiff believes gold is currently "climbing a wall of worry" but will eventually become as hot as tech stocks in 1999 and start moving up $100 per day.
Schiff's forecast is based on his view the U.S. dollar is going to collapse under the weight of our massive deficit and reckless policies of the Obama administration, which he compares to the massive spending programs of the 1960s, which paved the way for gold's ascent in the 1970s. "Obama is making the same mistakes as Bush, but he's doing them on a grander scale," says Schiff, who is running for U.S. Senate in Connecticut as a Republican...
(Excerpt) Read more at finance.yahoo.com ...
That's right -- gold is a store of value. In the early sixties, you could buy 12 barrels of oil ($3) for an ounce of gold ($35). In 2010 you can still buy about the same amount of oil for an ounce ($1000/12 = $83).
The day to day ups and downs of gold's value relative to the dollar don't matter in the long run. Gold maintains its value -- the dollar fluctuates.
Obama may be running out of road on spending. His polling is terrible, and recovery is near so the “opportunity crisis” is passing.
The question is whether the damage already done is enough to sink us, or if another “crisis” will require more idiot spending.
Who in their right mind would invest in America when Mugabe 2 is in charge? We do rely on foreign capital as does every other country.
The economy sucks and things are not getting any better. Obama wants them to get worse. A 50% drop from here is possible. Factor in the dollar slipping 10 to 20% more and you are pretty close to 90% plus add in possible inflation.
If you are in the market - consder ETFs for foreign markets or commodity based company ETFs which have gold, mining, energy, etc.
Anyone who thinks Schiff is a crank or short manipulator needs to compare our govt to any other western govt in the world. probably the worst leftist Islamo pandering govts in the western world are the USA and UK. The UK may go bankrupt before Christmas. I could name probably 20 countries with better govts than ours now.
Dollar being driven up? Good luck.
Gold $5,000 a ounce - no but $2000 is possible. Gold is good to trade IF you know what you are doing.
Dow or market down 90%. Very possible. 50% drop plus dollar devaluation of 20% or so gets you pretty close to a real 90% drop.
The govt printing presses will kill us. Social Security supposedly goes into the red late next year or about 10 years faster than was expected.
I see it as a way of helping to survive if/when the dollar collapses to zero or so near zero as to make it impractical to use.
Note I said ‘helping to survive’. I don’t see it as a total solution, only part of a survival package.
Investment? I agree with you, mostly, that it’s not a long term investment. But only because I sincerely think the dollar will be worthless or impractical in the near- to mid-term.
But I disagree with you about gold being a scam. Now if you said some gold dealers are scamming people, I’d agree, I think (depending on how you phrased it and defined it).
Pretty ballsy quote by Peter Schiff, considering he’s running for Senate.
Given the money printing, and debt montetization I’m not sure how he could be wrong - in the medium/long term.
Could be six months, could be six years unless some magical unicorns start producing golden Skittles we can use to balance our budget.
At that point, lead+brass+primer+powder will be worth way more...
must believe in what he’s saying, then.
Already worth more, if one has a delivery device.
Maybe the IMF dumped a ton on the market?
China owns gold mines. They can probably fill their needs without buying in the open market.
I wonder what currency they were buying if so......
I'm pretty sure China and others would probably buy up every bit the IMF wants to sell.
An endowment would be created with the profits from the limited sale of 403.3 metric tons of the Fund's gold holdings. If approved, gold sales would be conducted in a transparent manner with strong safeguards to ensure that they do not add to official sales and avoid any risk of market disruption.
Avoid market disruption. Yea right. http://www.imf.org/external/np/sec/pr/2008/pr0874.htm
It was on Coast to Coast last night, the hour where they have very brief interviews lasting a couple of minutes or so.
Here’s an explanation for today’s fall:
http://www.goldline.com/market-news/gold-commentary/1972/goldcorrects.html
Thanks for the info.
Goldline borders on being a rip-off.
In Jan 1980 the ratio of dow to gold was 1:1 (872.78 for the dow vs $850 for gold).
The economy was bad then, but there was no shtf situation.
Can the economy get as bad as Jan 1980 again? Sure, why not?
Can the ratio of dow to gold hit 1:1 again? Sure, why not?
What would that mean in current $ terms? $5k gold and 5,000 dow? Sure, why not?
The price of Gold in US $ is determined not only by the strength or weakness of the US $, but also the global demand for gold (among other things).
Even with gold at $1k, and gold from $250 to $1k, gold was never “the thing to buy”. There hasn’t been a mania, a bubble, or anything of the sort. Conventional wisdom throughout this entire period has not been to buy gold.
When everyone wants to buy gold as if it was yahoo.com in 1999-2000, that’s your bubble, that’s when gold hits $5k.
I’m not saying that bubble is going to happen, but we’re not in a gold bubble right now, and a gold bubble doesn’t mean catastophe at all. Just investors getting excited about something else.
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