January 31, 2014

Bullish on Resource Stocks

"The U.S. economy is a bubble that will burst. In contrast to prior monetary excesses, this time the U.S. Federal Reserve has inflated simultaneous bubbles in stocks, bonds and real estate. As the Fed prints more and more dollars to keep those bubbles from popping, the dollar will lose value and eventually precipitate a financial crisis larger than the one we experienced in 2008. The U.S. dollar is being propped up by foreign central banks. But when our creditors finally understand the box we are in, they will not be willing to hold as many dollars. You don’t want to own U.S.-dollar-denominated assets, and you certainly don’t want to own U.S. treasuries or corporate bonds. You’re better off owning equities outside the U.S.

I like resource stocks like Franco-Nevada, Goldcorp, Yamana Gold, Agnico-Eagle Mines and Endeavour Silver. Many people don’t understand how much inflation is being created, and how that benefits gold. Gold is going to be several thousand dollars an ounce before the bull market ends." - in The Globe & Mail 

Related stocks and ETFs: Goldcorp (GG), Yamana Gold (YG), SPDR Gold Trust ETF (GLD)

You can keep reading Peter Schiff`s market updates and commentary on this new website: Schiff On The Markets (click on the link or on the image below to access the new site)

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. Visit the new website Schiff On The Markets for exclusive content.
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