I'm investing in these:
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 ...
It makes sense if you set your brains’ controls on “11” while you happen to be entering a tunnel and then spill Pepsi on the dashboard, LOL.
If you ask 2 economists "How are things going?" ....you'll get at least 3 opinions.
Me? Well, I think that things aren't going very well, but it ain't the end of the world yet, either.
He’s right. We’ve fixed none of the fundamentals and have, instead, gone at our economy with a Marxist wrecking ball.
When did Noah prepare the Ark? BEFORE the flood...
Also, consider that for the value to reach $5000, that would be a ratio of dollars to the commodity. Considering the debt problem is world wide, not isolated into a single country, supply and demand may take a hold and you may not have someone or a country willing to pay this much as their currency is crashing as well.
I think $5000 gold is plausible, but it would come in large part due to dollar devaulation, which will mean that the Dow will tend to be priced high due to inflation.
Of course, gold just dropped 2% in the last hour, so who knows.
Peter was right about the housing collapse, but I think he was premature about the gold boom. I have no gold at all but wish I did.
And don’t tell anyone, but silver has farther to move upward than gold. ;)
Agreed. I think if we get to the point where gold is $5k per ounce, we’ll have bigger problems. Like getting food and not freezing to death in the winter.
I am increasingly beginning to believe that this is a matter when, not if.
President Truman often said he wished he could find an economist with just one hand. Why? He said that if you ask a question of an economist, you get an answer. Then the economist will always say “on the other hand, Mr. President.”
Things are grim, but I have a feeling that we will dig ourselves out of this before much longer. That includes taking back the House in 2010. If that happens, Mr. Obama’s days are numbered. Hell, I think they’re numbered anyway. The MSM is beginning to get a mite hinky on him, and a lot of Obama voters must be getting buyer’s remorse in a large way.
He is not a likable figure, and he has no sense of humor. He also uses the word “I” frequently. Not good.
Some of the German investment banks are predicting $2000+ per ounce over the next couple years, so $5000 over the next several years is not impossible. Supposedly the Chinese are urging their people to buy silver, so that would also mean some gold purchases also.
Gerald Celenti said last night that they are going to manipulate the dollar’s strength upwards again.
Another way it *could* hit this without massive dollar devaluation is if a country such as China or India undergoes a massive stockpiling of gold. For example, if China decides they want the Yuan to be a global standard currency and they want to have it backed, at least in part by gold, to make it competitive, they could make a run on the gold market- supply and demand would dictate the cost goes up. At the same time, the dollar's value against its standard competitors such as the Yen or Euro may not change as much as they are also being impacted by the same change in global currency demand.
Invest in salt. :->
Gold and silver BOTH are dropping like rocks... 7:49 Pacific time and both are going straight down on the charts. What the heck is going on? http://www.kitco.com/charts/livesilver.html
My metals dealers keep telling me the smart money has all be made. By the time it comes down to TV Commercials, all it means is that people want to sell high to the last group in. As usual.
Did he perchance say how they were going to do that?
uplift ping
I hope you're right, but unfortunately he has at least 3.5 years to do a lot of irreversable damage. I wonder if the people of this country will ever realize the huge disaster they voted for last Nov?
RUN FOR THE HILLS !
Someone is making it easy to buy up those commodities? Sure makes them less attractive as any sort of safety net.
I'm investing in these:
If the GOP makes significant progress in getting back House seats in 2010, and many polls point to that at this time, Mr. Obama’s high spending, socialist ways will be over soon.
Gold bugs made their profit, now they are cashing it in. This will drop the price, then they'll jump back in..
Ping for your expert opinion, if you are so inclined.
Thanks.
Plus oil is down like $7 bbl in the last two days or so...
Less cryptically, if one sees current conditions, gets an idea in one’s head, and then makes a linear-extrapolation prediction based on them, assuming no amount of government control or intervention can have any effect and TPTB will just let things go....then that is ONE among several possible outcomes.
I actually like Peter Schiff, but his fund was absolutely butchered last year. Way beyond what the market benchmark did.
The problem with doomsday scenarios in general is that if you’re early, it can be awkward. If you’re wrong, you could end up broke.
I don’t think it would *hurt* folks to own gold, but IMO it *will not work* to preserve your overall buying power *unless*: a: You put the overwhelming amount of your net worth into it, which is an allocation/nondiversification error on its face or b: gold happens to quad/quintuple, as Schiff says, and you have your 10-20% in it.
“What the heck is going on?”
Someone realized that gold is a scam.
Gold is not an investment. At best, own some gold coins as part of a “get the heck out of dodge” fund.
Which, as things are going, is probably a good thing to have. May have use them to bribe a border guard in Costa Rica someday.
My wife’s going to be eatin’ crow !!!
I pray that you’re right, but if cap-and-trade and nationalized healthcare passes, no republican will overturn that.
If Obama gets what he wants, this is probably very close.
| Gerald Celenti said last night that they are going to manipulate the dollar’s strength upwards again.
I don't know that gold could hit $5,000... that would mean $12-$13 gasoline and The Even Greater Depression. But $2,000 gold (with $5 gasoline) is quite possible given the way our Congress (and apparently a majority of our voters) seem to think that "federal funds" are a limitless source of free money. |
Things are grim, but I have a feeling that we will dig ourselves out of this before much longer. ....in general, I agree, but it depends on what your definition of "much longer" is. :-) I think that The Christmas season is going to be a cold bucket of water to the face, for a lot of people. Unemployment is still high, and more critically - the number of people receiving pay cuts is not being tracked / well publicized. Anecdotally, I can think of several dozen people that I know who have taken pay cuts/mandatory furloughs. That's not including myself, or the hundreds I work with. 10% of my salary is not a fortune, but more-or-less, those are my discretionary funds that I'm a little freer with spending.
I think that if either Cap and Tax or Health Care gets passed, then we're in for a much longer road to recovery. Honest to Goodness, I've no idea if either of them will pass. I'd like to think not, but Dems have managed to muddle the issue so well that it's hard to get a good read on either one of the bills.
He is not a likable figure, and he has no sense of humor. He also uses the word “I” frequently. .......yep. That, and a lot of people wanted to be "Hip" and "Cool" and "A part of history" by voting for him. Now, they've been there and done that. On to the next American Idol in 2012.
After only eight/nine months in office no less.
Well, wbill, we’ll see about all of this.
I think the town meeting anger we witnessed in August and early September is a harbinger. A lot of people are very angry at what this Congress and Mr. Obama are trying to do.
Which reminds me, do you know why a beer is better than Barack Obama? Well, it’s a got a better head on it, and it won’t raise your taxes!
Keep the faith!
I am moving to YAP....woohoo.
Re: Celente - Do you have a weblink to his interview? I try to keep up with his interviews.
HEY! That's a great idea. I have at least 10k lbs of salt.
Regards,
TS
Actually, salt prices have almost doubled in the last 18 months.
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.
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Yeah? How does he think "they" are going to do that? Currency traders are very smart and very ruthless. So are the Chinese, who have had to become currency traders by necessity. Fooling any of them into thinking that the dollar is strong is not one of the available options. Unlike liberal voters, currency traders are not economic illiterates. They see the Fed monetizing Treasury debt, and they know exactly what that means. And it isn't a stronger dollar.