Is Peter Schiff Really Predicting This?

Many of you who are reading this – not the average Joe the Plumber on the street – have certainly been paying attention to the markets and the actions of the Federal Reserve over the last couple of years. Peter Schiff, CEO of Euro Pacific Capital, has been one who has ket an eagle eye on all of it and has become one of the go-to analysts of the gold market and where it’s going and how it has been affected by the rise of the stock market, the quantitative easing and what it has been doing with the economy.

Schiff was a guest on CNBC for “Futures Now” and was asked his view about the markets and the current economic recovery. And after the bottom fell out of the gold price over the past year – trading at nearly $2,500 an ounce about 18 months ago to about $1,250 now – he said that he see a great bull run on gold coming, simply because the Fed ‘s monetary policy is actually maskig the economy, which is actually as bad or worse than it was in 2008. He highlights this in the following clip:

Schiff maintained that the stock and housing markets recoveries are propped up solely by the Fed’s current stimiulus program and are not a sign of actual economic recovery. He said the same fundamentals were in place before the 2008 financial crisi, and gold then also had a nice bull run in prices. He said that he believes that the Fed is stuck in its stimulus and does not buy the current whispers that the ed will be lowering its bond purchases from the current $75 billion per month to $65 billion.

“The Fed is not going to let the stock market collapse,” Schiff claimed. “That’s why it can’t taper. That’s why it can’t raise interest rates. If the Fed did those things, the stock market would collapse. So they will actually have to provide more liquidity to keep the stock market propped up. But that is great for gold.”

Schiff said this current recovery is “false” and is based soleyly on the current easy-money policy of the Fed, and that usually means a bull run on gold and other precious metals. He expects gold to take off in the coming months as the Fed’s stimulus continues because he says the Fed can’t afford to end it anytime soon.

Additionally, Schiff was asked about the price of gold in regards to the Fed’s tapering plan. Is the price of gold accounting for the current Fed taper?

“It think (gold) is priced at taper, but it has been too aggressive in pricing it in because I don’t think the Fed will actually follow through on its taper timetable,” Schiff said. “I thin that if the Fed were to really withdraw the stimulus, we would be in a worse recession that the one we had in 2008. .. The Fed will talk about it, but I don’t think the will actually do it. The gold market has already factored in a complete tapering and somehow a shrinking of the Fed’s balance sheet, which the Fed can’t do without destroying the economy.” Check out this clip below:

 

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Bloodiest UFC Fights Ever Fought

Most Expensive Rum Brands in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!