Peter Schiff, head of
SchiffGold,
Euro Pacific Capital, and
Euro Pacific Gold Fund (EPGFX) joins the show from his vacation office in tropical Crypto-Rico, where air conditioning service, not heating is the chief concern today. Key takeaway - gold is building a base that will likely culminate in new record prices, from $2,000 - $5,000 and under extreme conditions, $10,000+.Part I. of the talk includes key topics: PMs, US Equities Bear Market, Crude Oil and general commentary on the US economy. The guest / host outline their thoughts on how to "Make America Great Again," via a coordinated revamp of the current tax structure and encouraging private charities.The design set forth by the original Scottish Church charities for widows / orphans over 250 years ago, remains a most productive charitable system. Part II of the discussion involves an in-depth debate on the merits / challenges facing cryptocurrency market investors, slated for next week.Our guest notes that gold reached a bear market nadir in 2015 and is building a base for a new bull run. Conversely, the US equities market could be entering bear market territory. Given that an economic downturn is overdue by several years, both the guest and host concur, 2019 will likely register two quarters of declining US GDP.2019 could register the first official recession in one decade. The big wild card remains the upcoming G-20 showdown between the US POTUS and China's Jinping. The G-20 summit takes place in Argentina, where leaders will negotiate to resolve trade tensions. The United States could tariffs on 25 percent on $200 billion of Chinese imports on Jan. 1 from 10 percent currently, unless U.S. concerns are resolved at the summit. China, a large gold buyer, has suffered economically from tariffs, in particular industrial manufacturers and suppliers. Whereas US pundits note that the balance of power in the trading arena has been so skewed against the US for so many decades that tariffs might be necessary.Market watchers hope for improved relations between the two global economic superpowers, which would likely put a floor under equities.Investors continue to pour funds into the The SPDR Gold ETF (GLD) as a hedge against what could be a new bear theme in US equities. GLD has seen a surge in assets over the last month; the largest gold ETF received $600 million, a sizable one month increase. GLD ETF recorded big interest from investors in October due to rising market volatility, with $472.3 million in inflows for the calendar month.The Fed is approaching the end of its rate tightening cycle, with the ECB announcing plans to begin quantitative tightening. Many markets priced to near perfection for at least 12 months, against the backdrop of employment and inflation at multi-decade lows. Today the Fed Chairman Powell gave a key speech on the latest FOMC meeting minutes. Current FFF contracts at the CBOE indicate Fed policymakers will hike rates once more this year, next month and at least 3 three more hikes in 2019. The PMs markets could receive trillions of dollar from pensions funds that have less than a fraction of one percent in the yellow metal Nick Barisheff of Bullion Management Group is recovering from an illness; please forward get-well messages to Marty,
M.Nicandro@bmg-group.com.In Part I. of this discussion with Bob Hoye of
Institutional Advisors includes a startling sea change in attitude towards the PMs sector. After years of bearishness, Bob Hoye announced the potential for an epic GOLD RUSH on the horizon in the PMs sector, in particular, the mining shares.Lower expenses and deflation in typical shares enhance their appeal of PMs equities to the benefit of shareholders.
10 million percent inflation is expected in Venezuela, as forecasted by the IMF in a Reuter's article on GATA.org.Today, $300,000 could soon be required to purchase a $3 loaf of bread, just 2 years earlier and a gold coin $120,000,000 or $120 million! Parallels are drawn between the numerous inflationary fiasco's from the genesis of civilization until today, including Ancient Greece, Rome, China.100 years of inflation occurred during the 1700's in France, perhaps best illustrated by the easy to read,
Fiat Money Inflation in France (White, 1876), In the last century, hyperinflation ravaged the economies throughout Europe as well as Zimbabwe. Today Venezuela is unraveling amid runaway inflation, and Argentina is on the cusp of hyperinflation at 32%, while Brazil is on the inflation watchlist. Just as gold and silver shielded purchasing power millennia hence, the perfect panacea for hyperinflation today remains PMs investments.
