Monday, August 27, 2012

Peter Schiff: Mario Draghi’s Commentary Means Gold Prices Will Retest 2011 Highs (GLD, IAU, PHYS, DZZ, SLV)

Jared Cummans: European Central Bank president Mario Draghi caused quite a commotion last week when he stated that the ECB would do anything in its power to save the euro. Stocks soared and investors saw a bit of confidence return to the market. That was quickly followed by healthy GDP figures from the U.S., allowing a number of assets to climb even higher. Among the best performers was gold, as investors felt the commodity was poised for gains given the commentary from Draghi as well as the wide assumption that Bernanke and the Fed are ready to print more money [see alsoThree Reasons Why Gold Is Overvalued].

One of the most prolific names talking about gold was investing guru Peter Schiff. Schiff, of EuroPacific Capital, has been known for his relatively bold predictions concerning the precious metal, including his firm belief that it is headed towards $5,000 per ounce. Now, Schiff has stated that Draghi’s most recent comments paint a bullish picture for gold, as it will mean that the ECB will be forced to print more money, devaluing the euro versus gold.

“If gold breaks above the $1,650 level with conviction, then I think we are looking at retest of the all-time highs from late summer of 2011″ said Schiff, “I think, ultimately, we take out the highs and we go a lot higher. At some point, if I’m right, these gold stocks are going to take off because they have a lot of catching up to do” [see also Why Jim Rogers Thinks Gold Will Drop 20%].

 Read full article: http://etfdailynews.com/2012/08/02/peter-schiff-mario-draghis-commentary-means-gold-prices-will-retest-2011-highs-gld-iau-phys-dzz-slv/

Peter Schiff: Republicans Hope, But Don’t Change

For much of the past few generations, the debate over balancing the federal budget has been a central feature of every presidential campaign. But over time, the goalposts have moved. As the amount of red ink has grown steadily larger, the suggested time frames to restore balance have gotten increasingly longer, while the suggested cuts in government spending have gotten increasingly shallower. In recent years, talk of balancing the budget gave way to vague promises such as “cutting the deficit in half in five years.”  In the current campaign, however, it appears as if the goalposts have been moved so far that they are no longer in the field of play. I would argue that they are completely out of the stadium.

It says a great deal about where we are that the symbolic budget plan proposed last year by Congressman Paul Ryan, the newly minted vice presidential nominee, has created such outrage among Democrats and caution among Republicans. The Obama campaign warns that the Ryan budget is a recipe for national disaster that will pad the coffers of the wealthy while damning the majority of Americans to perpetual poverty. The plan is apparently so radical that even the Romney campaign, while embracing the messenger, is distancing itself from the message (it appears that Romney wants to bathe himself in the aura of fresh thinking without actually offering any fresh thoughts). In interview after interview, both Romney and Ryan refuse to discuss the details of Ryan’s budget while slamming Obama for his callous “cuts” in Medicare spending.
(It is extremely disheartening that the top point of contention in the campaign this week is each candidate’s assertion that their presidency could be the most trusted not to cut Medicare. Mindful of vulnerabilities among swing state retirees, Republicans have also taken Social Security cuts off the table as well. What hope do we have of reigning in government spending when even supposedly conservative Republicans refuse to consider cuts in the largest and fastest growing federal programs?)
So what was the Ryan Budget’s radical departure from the status quo that has caused such uproar? If enacted today, the Ryan budget would so drastically upend the fiscal picture that the U.S. federal budget would come into balance in just… wait for it…. 27 years! This is because the Ryan budget doesn’t actually cut anything. At no point in Ryan’s decades long budget timeline does he ever suggest that the government spend less than it had the year before. He doesn’t touch a penny in current Social Security or Medicare outlays, nor in the bloated defense budget. His apocalypse inducing departure comes from trying to limit the rate of increase in federal spending to “just” 3.1% annually. This is below the 4.3% rate of increase that is currently baked into the budget, and farther below what we would likely see if Obama’s priorities were adopted.

Read Full Article:
 http://marketplayground.com/2012/08/17/peter-schiff-republicans-hope-but-dont-change/

Peter Schiff: Major Development In Metals; “The Time To Buy Cheap Will Soon Be Gone” (GLD, SLV, IAU, AGQ)

Mac Slavo: With the Congressional Budget Office reporting that the United States will soon fall off the fiscal cliff unless the government takes immediate action, the Federal Reserve weighing another round of heavy-hitting monetary expansion, and the Republican Party now apparently jumping on board the gold standard train, the stars for precious metals seem to be in alignment. So says Peter Schiff, CEO of Europacific Precious Metals.

Having been ahead of gold’s massive upward move years before the bursting of the real estate bubble and crash of 2008, Schiff says there has been a “major development in precious metals,” and if you don’t have any gold or silver yet, this may be your last chance before they head to new record highs.

Read Full Article:
http://etfdailynews.com/2012/08/24/peter-schiff-major-development-in-metals-the-time-to-buy-cheap-will-soon-be-gone-gld-slv-iau-agq/