July 31, 2011

Over The Past 50 Years, The US Debt Ceiling Has Been Raised Over 70 Times. In Other Words, There Is No Ceiling At All

Over the past 50 years, the US debt ceiling has been raised over 70 times. In other words, there is no ceiling at all - it is as fictitious as the idea that central planning works, or that the US has anything resembling a "free market."

So, I guess it stands to reason that regardless of the debt ceiling increase, it is likely that the US will be downgraded by one or more ratings agencies. The effect will be massive because the world's largest pension, mutual, and sovereign wealth funds typically mandate investment only in AAA-rated securities. A downgrade of US debt means those funds must immediately sell off their primary reserve asset. The effect of this cannot be overstated, and gold would be the first and best refuge for an onslaught of orphaned capital. - in Schiff`s Gold Newsletter

Related stocks and ETF`s: SPDR Gold Trust (ETF) (NYSE:GLD), Newmont Mining Corporation (NYSE:NEM), Barrick Gold Corporation (USA) (NYSE:ABX) , Goldcorp Inc. (USA) (NYSE:GG), Yamana Gold Inc. (USA) (NYSE:AUY), NovaGold Resources Inc. (USA) (AMEX:NG), Ishares Silver ETF (SLV), Hecla Mining (HL), Silver Wheaton (SLW), New Gold (NGD), Kinross Gold (KGC), Coeur d'Alene Mines Corporation (NYSE:CDE)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

July 29, 2011

Any Dip In Metals Prices From A Settlement Is Likely To Be Very Fleeting - And A Great Opportunity To Build Your Positions Before The Great Ascent Returns

Gold is breaking all-time records so often recently, it's becoming commonplace. This month was no different, with gold breaking the important $1600 barrier - and it's still going. Meanwhile, silver is back above $40 and looks set to continue this momentum. For all those who claimed the big metals correction in May was the end of the bull, allow me to point out that I never once lost sight of the fundamentals and once again they are manifesting themselves.

In this issue, Jeff Clark makes a good case for why gold and silver have plenty of room for further gains this year. And I discuss the big question on everyone's mind: how will this debt ceiling issue affect the price of gold and silver in the months and years ahead?

The good news is that any dip in metals prices from a settlement is likely to be very fleeting - and a great opportunity to build your positions before the Great Ascent returns. - in Schiff`s Gold Newsletter

Related stocks and ETF`s: SPDR Gold Trust (ETF) (NYSE:GLD), Newmont Mining Corporation (NYSE:NEM), Barrick Gold Corporation (USA) (NYSE:ABX) , Goldcorp Inc. (USA) (NYSE:GG), Yamana Gold Inc. (USA) (NYSE:AUY), NovaGold Resources Inc. (USA) (AMEX:NG), Ishares Silver ETF (SLV), Hecla Mining (HL), Silver Wheaton (SLW), New Gold (NGD), Kinross Gold (KGC), Coeur d'Alene Mines Corporation (NYSE:CDE)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

July 28, 2011

There’s Always Going To Be Some Transitionary Pain When You Move Away From A Bubble Economy To A Real Economy

It would be a very helpful development if we cut 1.5 trillion dollars from the budget. The economy would be in great shape, especially if we accompanied those cuts with a big reduction in government rules and regulation that inhibit the hiring process. Then we could hire all the people who get laid off from government jobs, and get those who aren’t currently working into productive employment. All that would happen if we could chop 1.5 trillion dollars from government spending, because that spending is inhibiting the economy from growing right now.

But there’s always going to be some transitionary pain when you move away from a bubble economy to a real economy. But the bubble’s going to burst eventually anyway, so if we pop it ourselves, it’s better than if we wait for it to happen on its own. - in index universe

Related: SPDR S&P 500 Index ETF (SPY), ProShares UltraShort S&P500 (ETF) (NYSE:SDS)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

The World Doesn’t Want To Lend Us $2 Trillion A Year. We Can’t Afford To Pay It Back.

The dollar is starting to fall too, although not quite through the floor yet. But it is at a record low against the Swiss franc, the Japanese yen, the New Zealand dollar and it’s almost at a record low against the Australian dollar.

So the real crisis is coming, not because we fail to raise the debt ceiling, but because we succeed. That’s what the market is worried about—that Congress does raise the debt ceiling and it does so without meaningful reductions in government spending. The world doesn’t want to lend us $2 trillion a year. We can’t afford to pay it back, or pay back what we’ve already borrowed. - in index universe

Tickers: ProShares UltraShort 20+ Year Treasuries ETF (TBT), iShares Barclays 20+ Year Treasury Bond (ETF) (TLT), iShares Lehman 7-10 Year Treasuries Bond ETF (IEF), SPDR S&P 500 ETF (SPY), ProShares UltraShort S&P500 ETF (SDS), Bank of America Corp (BAC), JP Morgan Chase (JPM) Citigroup (C), SPDR Gold ETF (GLD), IShares Silver ETF (SLV)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

July 27, 2011

So We Have To Default And The Question Is What Form Does The Default Take?

Of course as people begin to focus on the real threat to the US dollar, which is not default on our Treasuries, but inflation where we repudiate debt by printing because we cannot pay the debt.

So we have to default and the question is what form does the default take? People are now focusing on whether America just refuses to pay, even though that is not the most likely scenario for default...

Related: ProShares UltraShort 20+ Year Trea (ETF) (TBT) iShares Barclays 20+ Year Treasury Bond (ETF) (TLT) iShares Lehman 7-10 Yr Treas. Bond (ETF) (IEF) SPDR S&P 500 ETF (SPY) ProShares UltraShort S&P500 (ETF) (SDS) Bank of America Corporation (BAC) JPMorgan Chase (JPM) Citigroup (C) SPDR Gold ETF (GLD), IShares Silver ETF (SLV)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

Gold Is Going To Go Higher As The Dollar Continues To Lose Value

Well as I’ve been saying gold is going to go higher as the dollar continues to lose value. That’s what’s happening, I mean look at the dollar even against other fiat currencies today, it’s at a new low against the Yen, a new low against the Swiss Franc, a new low against the New Zealand dollar, almost at a new low against the Australian dollar, a new yearly low against the Canadian dollar, so the dollar is sinking and gold is rising.

Related Tickers: SPDR Gold Trust (ETF) (NYSE:GLD), Newmont Mining Corporation (NYSE:NEM), Barrick Gold Corporation (USA) (NYSE:ABX) , Goldcorp Inc. (USA) (NYSE:GG), Yamana Gold Inc. (USA) (NYSE:AUY), NovaGold Resources Inc. (USA) (AMEX:NG), Ishares Silver ETF (SLV), Hecla Mining (HL), Silver Wheaton (SLW), New Gold (NGD), Kinross Gold (KGC), Coeur d'Alene Mines Corporation (NYSE:CDE)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

There Are No Monuments for Compromise


Topic: Debt Ceiling, American History

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

July 25, 2011

50 USD Is Now The Resistance In Silver

We’ve held some key lows, especially in silver, where silver held up and never got down to 30 USD. That used to be the resistance before it broke up and moved up to 50 USD. 50 dollars is now the over head resistance and we will take that out before the end of the year. I think eventually silver north of 200 dollars with gold over 5,000 dollars makes a lot of sense. - in WallStreetSheet

Related Tickers: SPDR Gold Trust (ETF) (NYSE:GLD), Newmont Mining Corporation (NYSE:NEM), Barrick Gold Corporation (USA) (NYSE:ABX) , Goldcorp Inc. (USA) (NYSE:GG), Yamana Gold Inc. (USA) (NYSE:AUY), NovaGold Resources Inc. (USA) (AMEX:NG), Ishares Silver ETF (SLV), Hecla Mining (HL), Silver Wheaton (SLW)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

All The Talk About US Default...

“I think that all the talk about default is really an admission that the United States is running a gigantic Ponzi scheme.” - in NewsMax.com

Related Tickers: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treasury Bond (ETF) (NYSE:TLT), iShares Lehman 7-10 Yr Treas. Bond (ETF) (NYSE:IEF), SPDR Gold ETF (GLD), IShares Silver ETF (SLV), SPDR S&P 500 ETF (NYSE:SPY), ProShares UltraShort S&P500 (ETF) (NYSE:SDS);

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

July 21, 2011

What`s Driving Gold?

If it were true that people bought gold to protect themselves from market uncertainty, as the Chairman claims, then the metal should have spiked in the midst of the '08 credit crunch. Instead, it fell along with most other assets. People instinctively fled into US dollars and Treasuries because of their long record of stability.

What Bernanke doesn't understand is that his irresponsible monetary policy is undermining that faith in US assets, built up over generations. That is what's driving gold: easy money, negative interest rates, and quantitative easing.

Related Tickers: SPDR Gold Trust (ETF) (NYSE:GLD), Newmont Mining Corporation (NYSE:NEM), Barrick Gold Corporation (USA) (NYSE:ABX) , Goldcorp Inc. (USA) (NYSE:GG), Yamana Gold Inc. (USA) (NYSE:AUY), NovaGold Resources Inc. (USA) (AMEX:NG)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

July 20, 2011

Mr. Bernanke’s Incompetence Will Destroy The Value Of The Dollar And Unleash Runaway Inflation

By claiming that gold is not money, the Chairman demonstrates his ignorance of much of monetary history. He told Congressman Ron Paul that he had no idea why central banks hold gold, before speculating that it might have something to do with tradition. Yes, traditionally gold is money, which is precisely why central banks hold it. And gold is money because central bankers like Mr. Bernanke cannot be trusted with a paper substitute.

Bernanke further disputes the facts by claiming that the only reason people are buying gold is to hedge against uncertainty, or “tail risks” as he calls them. My advice to the Chairman is to ask the people who are actually buying it. As someone who has been buying gold myself for a decade, I can assure him that my gold buying has nothing to do with "uncertainty." In fact, it’s just the opposite. I am buying gold because of what is certain, not what is uncertain. I am certain that Mr. Bernanke’s incompetence will destroy the value of the dollar and unleash runaway inflation. - in Europac.net

Related Tickers: SPDR Gold Trust (ETF) (NYSE:GLD), Newmont Mining Corporation (NYSE:NEM), Barrick Gold Corporation (USA) (NYSE:ABX) , Goldcorp Inc. (USA) (NYSE:GG), Yamana Gold Inc. (USA) (NYSE:AUY), NovaGold Resources Inc. (USA) (AMEX:NG)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

July 19, 2011

Bernanke Told Congress That Gold Is Not Money, People Buying Gold Are Not Concerned About Inflation

If anyone had lingering faith that Mr. Bernanke actually has a plan to end the US government's addiction to cheap money, the Chairman's semi-annual testimony to Congress should have washed it away. In addition to claiming that his money-printing has helped the US economy, Bernanke told Congress that gold is not money, people buying gold are not concerned about inflation, and the external value of the dollar has no influence on its domestic purchasing power. - in Europac.net

Related Tickers: Tickers: SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), Anglo Gold (AU), Goldcorp (GG), New Gold (NGD), Novagold (NG), Seabridge Gold, Inc. (USA) (AMEX:SA), Seabridge Gold Inc (TSE:SEA), Rubicon Minerals Corp. (TSE:RMX), Goldcorp Inc. (TSE:G), Kinross Gold Corporation (TSE:K), Yamana Gold Inc. (TSE:YRI), Yamana Gold Inc. (USA) (NYSE:AUY), IShares Silver ETF (SLV), Hecla Mining (HL), Silver Wheaton (SLW)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

July 18, 2011

All The Talk About Default...

“I think that all the talk about default is really an admission that the United States is running a gigantic Ponzi scheme." - www.humanevents.com

Related Tickers: ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treasury Bond (ETF) (NYSE:TLT), iShares Lehman 7-10 Yr Treas. Bond (ETF) (NYSE:IEF)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

July 15, 2011

Ben Bernanke Proves Once Again That He Is Either A Buffoon Or A Liar

In one of his most transparent performances to date, Fed Chairman Ben Bernanke proves once again that he is either a buffoon or a liar. In addition to claiming that his money-printing has helped the U.S. economy, he told Congress that gold is not money, that people buying gold are not concerned about inflation, and that the external value of the dollar has no influence on its domestic purchasing power. - in AdvisorOne

Related: SPDR Gold ETF (GLD), IShares Silver ETF (SLV)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

July 14, 2011

The Game Of Competitive Currency Debasement

The last few years have seen an unprecedented pace of monetary expansion from the United States and other countries looking to keep pace in a game of competitive currency debasement. - in OC Metro

Related Tickers: SPDR Gold ETF (GLD), IShares Silver ETF (SLV), Hecla Mining (HL), Silver Wheaton (SLW)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

July 13, 2011

The Default Risk

The fact that we are talking about default at all merely proves that default is inevitable eventually. The only question is, what form does the default take and when does it happen.

If the President was really concerned about default, if Congress was really concerned about default, what they would be saying was, don`t worry, there`s no way we will stop making payments on our debt. We will cut everything else first. We will cut Social Security, we will cut Medicare, we will prioritize interest payments and principal payments on the national debt. If they said that then default would not be a risk. - in RT

Related Tickers: SPDR S&P 500 ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), PowerShares QQQ Trust, Series 1 (ETF) (QQQ), ProShares UltraShort S&P500 (ETF) (SDS), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), iShares Russell 2000 Index (ETF) (NYSE:IWM), ProShares UltraShort QQQ (ETF)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

July 12, 2011

US Debt Ceiling Talks In Deadlock


Tickers: SPDR S&P 500 ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), PowerShares QQQ Trust, Series 1 (ETF) (QQQ), ProShares UltraShort S&P500 (ETF) (SDS), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), iShares Russell 2000 Index (ETF) (NYSE:IWM), ProShares UltraShort QQQ (ETF)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

Both Taxes And Spending Are Likely To Head Higher In The Years Ahead. Americans Should Prepare For The Sad Reality.

The debt problem does not stem from low taxes, but from high spending. I do not expect a deal to lift the debt limit will make any meaningful impact on either. Unfortunately both taxes and spending are likely to head higher in the years ahead. Americans should prepare for the sad reality. - in europac.net

Related Tickers: SPDR S&P 500 ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), PowerShares QQQ Trust, Series 1 (ETF) (QQQ), ProShares UltraShort S&P500 (ETF) (SDS), ProShares UltraShort 20+ Year Trea (ETF) (NYSE:TBT), iShares Barclays 20+ Yr Treas.Bond (ETF) (NYSE:TLT), iShares Russell 2000 Index (ETF) (NYSE:IWM), ProShares UltraShort QQQ (ETF)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

July 11, 2011

Government Stimulus Is Not Creating Jobs

Government stimulus is not creating jobs. Printing money, spending money is not going to do it. If anything, the government interference to the economy is destroying jobs. It`s preventing jobs from being created. - in Videoblog, July 9th

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

Jobs: It Was An Abysmal Report


Schiff Report Video Blog: There are no jobs because there is no growth. The lack of jobs proves that governments GDP numbers are bogus and that the recovery is a myth. You can fabricate phony GDP growth with flawed data, but you cannot fake real jobs.

Related Tickers: SPDR S&P 500 ETF (SPY), SPDR Dow Jones Industrial Average ETF (DIA), PowerShares QQQ Trust, Series 1 (ETF) (QQQ), ProShares UltraShort S&P500 (ETF) (SDS)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

July 6, 2011

Weak Seasonality For Metals

We've entered summer, a typically slow season for the metals. Those of you who have bought shouldn't expect to see major gains the next few months. In fact, the metals will likely sell off a bit, providing a great time to add to your positions.

Gold closed June just 1.8 percent lower than it began, which is a fairly healthy start to this season. Silver pulled back almost 8 percent, in keeping with our guidance that silver will tend to move with gold but more dramatically. Still, after the over-correction in January, silver seems to be staying comfortably above the 30 dollar mark, impressive considering it was below $20 this time last year. That's an over - 50 percent gain for those who bought in June 2010. - in Schiff`s Gold Newsletter

Tickers: SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), Anglo Gold (AU), Goldcorp (GG), New Gold (NGD), Novagold (NG), Seabridge Gold, Inc. (USA) (AMEX:SA), Seabridge Gold Inc (TSE:SEA), Rubicon Minerals Corp. (TSE:RMX), Goldcorp Inc. (TSE:G), Kinross Gold Corporation (TSE:K), Yamana Gold Inc. (TSE:YRI), Yamana Gold Inc. (USA) (NYSE:AUY), IShares Silver ETF (SLV), Hecla Mining (HL), Silver Wheaton (SLW)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.

July 5, 2011

This System Of Money By Government Fiat Is Unsustainable

Imagine a day when you go to buy a quart of milk, ask the price, and the cashier says, "that'll be a tenth ounce silver." As the US dollar's decline accelerates, several efforts around the country are trying to make this vision a reality.

Historically, paying for items in silver or gold was actually quite common. We happen to live in an unusual time and place where generations have grown up trading exclusively in paper. While my parents still used dimes made of silver, we have now gone several decades with no precious metals in any of our official coinage. But this system of money by government fiat is unsustainable. - in www.investmentnews.com

Related: IShares Silver ETF (SLV), Hecla Mining (HL), Silver Wheaton (SLW)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.