800% INCREASE in GOLD Demand! Something HUGE is Happening to GOLD and SILVER Prices - Peter Schiff New Interview
Educate my audience about silver gold, chris vermeulen, silver bullion, gold and silver news, silver news today, silver news, gold investment, silver price predictions, silver and gold, silver price, xrp, silver stacking, free market economics and the principles and benefits of individual liberty, limited government and sound money. These are America's founding principles, guaranteed by the U.S.
Gold price is Gold investment as we look through Gold market Gold analysis, Gold stocks, Gold mining and it Gold bullion. Silver price is also Silver investment as the Silver market and it Silver analysis give Silver predictions on Silver stocks,Silver mining and Silver bullion. Precious metals prices is not stable as the Precious metals market is hard for Precious metals predictions to make. Precious metals stocks,Precious metals mining and Precious metals bullion is as a result of good experience.
Educate my audience about silver gold, chris vermeulen, silver bullion, gold and silver news, silver news today, silver news, gold investment, silver price predictions, silver and gold, silver price, xrp, silver stacking, free market economics and the principles and benefits of individual liberty, limited government and sound money. These are America's founding principles, guaranteed by the U.S.
Gold price is Gold investment as we look through Gold market Gold analysis, Gold stocks, Gold mining and it Gold bullion. Silver price is also Silver investment as the Silver market and it Silver analysis give Silver predictions on Silver stocks,Silver mining and Silver bullion. Precious metals prices is not stable as the Precious metals market is hard for Precious metals predictions to make. Precious metals stocks,Precious metals mining and Precious metals bullion is as a result of good experience.
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00:00I think we're finally getting close to the day of reckoning.
00:05That's what the gold price is telling you.
00:07And that's going to really unleash a bigger move up in the price of gold.
00:11But again, it's not gold becoming more valuable.
00:14The financial tides are shifting and gold is leading the way.
00:18Peter Schiff is here to break down why we're only seeing the beginning of gold's massive
00:22rise and why the Federal Reserve's next move could send shockwaves through the economy.
00:27With inflation creeping back and the dollar losing ground, this isn't just a moment.
00:32It's a turning point.
00:33In today's video, we'll uncover why gold could reach $20,000 an ounce and what that means
00:39for you.
00:40Stay tuned, because this is a story you don't want to miss.
00:43Well, I think we're just getting started.
00:45I mean, gold is up almost 30% so far this year, another all-time record high today,
00:51getting close to $2,700 in the spot market.
00:54This is the best year that gold has had since 1979.
00:59That is not insignificant, but also a key difference between now and 1979.
01:05That was the end of the gold bull market.
01:07And in 1980, Paul Volcker raised interest rates up to 20%.
01:12That's what killed the bull and brought inflation down.
01:15But the current Fed is cutting rates, is going to cut rates more in 2025.
01:19So gold is just getting started.
01:21This is at 1979.
01:23This is 1971.
01:25So gold is going to rise multiples of its current price.
01:29Just like earlier in this century, gold started in 2001, was $270 an ounce.
01:35And it had a 10-year rise to $1,900 in 2011.
01:39Then it went sideways for about a dozen years, 13 years.
01:42Now it just broke out this year.
01:45And I think we're going to see a move as big as that earlier move.
01:49And that was a six-fold increase in gold over 10 years.
01:53If gold goes up six-fold from here, that's close to $20,000 an ounce.
01:59And it's not that gold is getting more expensive.
02:02Remember, when we first started our country in 1789, gold was $20 an ounce.
02:09And it was still $20 an ounce in 1913, over 120 years later, when we established the Federal
02:16Reserve.
02:17So now you can't buy an ounce of gold for $20.
02:19You need almost $2,700.
02:22It's the same ounce of gold.
02:24All that's changed is the value of the dollars that the Federal Reserve creates.
02:28Well, the dollar is about to collapse.
02:31In fact, it's almost near a new 52-week low here again today, if you look at the dollar
02:35index.
02:36It's near a 13-year low against the Swiss franc.
02:39It's going to hit a record low against the Swiss franc next year.
02:42But I think next year, the bottom is going to fall out of the dollar.
02:45And that's going to really unleash a bigger move up in the price of gold.
02:49But again, it's not gold becoming more valuable.
02:52It's the dollars that they're printing becoming less valuable.
02:55Well, the Fed is very desperate.
02:57I mean, normally, they wait until there's a problem before cutting rates.
03:01They wait for a major stock market decline.
03:03They wait for a recession.
03:05But here, they're cutting rates even before we're officially in a recession and with the
03:10stock market at all-time record highs, with real estate prices at all-time record highs.
03:15And with the gold price at an all-time record highs, we've never had the Fed start cutting
03:19rates when gold was at an all-time record high.
03:22And in fact, the record high in gold proves that the Fed's rate cut was a mistake.
03:28It proves that the Fed is too loose.
03:29In fact, they never achieved a restrictive policy.
03:34They keep talking about that.
03:36But they never really got restrictive because credit kept expanding.
03:41We have record amounts of debt, government debt, corporate debt, household debt, credit
03:46card debt.
03:47Nobody stopped borrowing.
03:49And we have record low savings.
03:50So that shows that the Fed never raised interest rates high enough to break inflation.
03:56And now they're cutting them prematurely.
03:58And so gold is telling you that we're going to see a spike in the CPI big time, I think,
04:04in 2025.
04:05We've seen the lows in inflation.
04:073% is about as low as it's going.
04:09Now it's heading back up to 9% and then higher.
04:13And I think one of the big drivers next year is going to be oil.
04:16Because right now, oil is the lowest it's ever been in history.
04:19You can buy 40 barrels of oil with one ounce of gold outside of a few weeks during COVID.
04:26That's never happened.
04:28So oil is super cheap right now, but it's not going to stay cheap.
04:33After the election next year, oil is going to go up, commodities are going to boom, and
04:38the Fed is going to be in a real box, along with the economy, because inflation is going
04:42to be breaking out at the same time the economy is breaking down.
04:46So we're going to go into a recession with rising unemployment, but we're also going
04:49to have accelerating inflation.
04:52And so what's the Fed going to do in that circumstance?
04:55If you look at the way the national debt is rising right now, it's rising about $3-4 trillion
05:02every year.
05:03Interest on the national debt is over a trillion a year.
05:06It's now more expensive than defense.
05:08In a couple of years, we're going to be paying $2 trillion a year in interest on the debt.
05:13It's going to be a bigger expense than Medicare or Social Security.
05:17And so the fiscal solvency of the United States is rapidly breaking down.
05:22People are losing confidence in the dollar.
05:25They're losing confidence in the creditworthiness of the United States, our ability to service
05:30this debt.
05:31We have no ability to repay it.
05:33And so the dollar is going to be marked down, and I think the world is going to be divesting
05:37of treasuries.
05:39That's why you're already seeing yields on the 10-year to the 30-year are higher now
05:43slightly than they were when the Fed started cutting rates.
05:46And I think that's going to continue.
05:48In fact, I think that by the first quarter of next year, and maybe even before the end
05:53of this year, the Fed is going to return to quantitative easing, because the yield on
05:57the 10-year treasury is going to break above 4% again and head higher.
06:02And I think the Fed is going to panic at that point.
06:05When we were at 5% and the economy still looked like it was growing, the Fed was still saying,
06:12OK, we've got to fight inflation.
06:13But what happened is at 5%, banks started to fail.
06:17You had a bunch of big bankruptcies in basically an insolvent banking sector.
06:21A lot of people were oblivious to the problems in the financials up to the 2008 financial
06:26crisis.
06:27I mean, people were recommending all these stocks right before they collapsed and had
06:31to be bailed out by the government.
06:32Look, I think they have a lot of toxic loans on their books.
06:36I think the commercial mortgage loans are going to collapse.
06:40I think banks are losing money on all the residential mortgages that they own because
06:45they're collecting such low rates on them.
06:48And rates are going to go up with inflation.
06:50That is the problem, right?
06:52Inflation is bottom that is headed higher.
06:54And the reason that the economy was able to handle the 5% rates for a while was because
07:00everybody knew the Fed was going to cut and it was only temporary.
07:03But when inflation comes back and now the Fed is in a predicament where it actually
07:08has to start raising rates again, even though the economy is in recession, and that people
07:14are going to realize that they're never going to get back to these super low rates because
07:18long term interest rates stayed low.
07:21Look where the yield is on a 10 year treasury.
07:24It's still below 4%.
07:26And look at the tip spreads.
07:27For the last four years, the break evens on tips have been close to 2%.
07:32Right now, the break even is 2.12.
07:35The markets still don't realize how much inflation we're going to have over the next 10, 20,
07:4030 years.
07:41It's not going to be anywhere near 2%.
07:43It's more likely to be 10% or higher.
07:46And so the whole bond curve has to reprice to reality.
07:51Because for the last several years, bond investors have been completely asleep, oblivious to
07:55the inflation that's there.
07:57They're going to wake up from their slumber.
08:00And this could be a whole new world.
08:01The Fed is going to keep cutting for a while.
08:04But the market's going to keep increasing long term rates as the Fed is reducing short
08:08term.
08:09Well, I think we're going to ultimately get a lot higher than 5.
08:11But I think before we get to 5, the Fed is going to go back to QE.
08:14And that will temporarily slow down the rise of yields.
08:18But it's going to accelerate inflation.
08:20And it's ultimately going to put more market pressure to move interest rates higher, particularly
08:26once you get away from treasuries.
08:27So corporate bonds, municipal bonds, whatever the Fed isn't buying, the prices are going
08:33to collapse and yields are going to go up as we're in this stagflationary environment.
08:39And there's also political ramifications, too, depending on the outcome of the election.
08:43Bad either way, fiscally.
08:45But I think we're finally getting close to the day of reckoning.
08:49That's what the gold price is telling you, you know, silver.
08:52The GDP is consumers spending borrowed money to buy more expensive groceries and stuff
08:58like that.
08:59It's the government spending borrowed money is a big part of that GDP.
09:04And we have a massive deficit that is a consequence of this fake GDP growth.
09:08In the meantime, our current account deficits are at record highs.
09:12Our trade deficits are at record highs.
09:14The economy is hemorrhaging red ink.
09:16We do not have a good economy.
09:18We don't have a growing economy.
09:19We have inflation and inflation creates the illusion of economic growth.
09:24But people are getting poorer even though the numbers are going up again.
09:27Look at the price of gold.
09:29You need almost two thousand seven hundred dollars to buy one ounce of gold.
09:33As Peter Schiff explained, we're standing at the edge of a major economic shift.
09:37The dollar's value is slipping.
09:40Inflation is far from tamed and gold.