Peter Schiff Sees A Continued Upside In Gold

Peter Schiff sees a continued upside in gold as cracks in the US economy emerge.

Decades of offshoring manufacturing have created a shortage of skilled labour capable of supporting a productive economy.

An ageing workforce, the decline of apprenticeships, the elimination of a shop class and less enthusiasm for skilled work have made it challenging for manufacturers to onshore production due to a lack of skilled labour. 

Peter Schiff sees a continued upside in gold based on several dynamics; a tight labour market for skilled workers is fuelling wage increases. Meanwhile, the central bank is creating more currency to facilitate the ever-increasing public debt approaching 36 Trillion dollars.

The interest payment on the debt alone, the third-largest budget item, is nearly one trillion dollars.

When the central bank has to continue creating currency so the government can honour its interest payments, the road to monetary hyperinflation is ahead. 

Why would savers want to store their rainy-day fund for a future medical expense or fix a leaking roof in fiat currency? 

Gold coins or bars have been a safe store of value, since time immemorial, protecting wealth through wars, plagues, currency failures and rebellions.

An ounce of gold bought a quality dress suit in Roman times, and it still does today.  

“We’re all over the world. We’ve got our troops all over the world, but we can’t afford to deploy them. We can’t afford to provision them without borrowing money, and that is not sustainable. I mean, it’s going to crumble. I don’t think the world is going to pay an ever-increasing tribute to the United States to maintain this situation. I think it’s going to come to an end. Yes, it’s gone on for a long time, and our military has probably been part of what’s enabled it,”  he added.

BRICS gold-backed currency is another reason why Peter Schiff sees a continued upside in gold

As countries start seeing cracks in a US-centric fiat debt system that looks increasingly jaded, nations could pivot to BRICs, an economic, political and defence universe outside the US-centric orbit of influence and the USD. In 2023, over 40 countries, including Iran, Saudi Arabia, United Arab Emirates, Argentina, Algeria, Bolivia, Indonesia, Egypt, Ethiopia, Cuba, Democratic Republic of Congo, Comoros, Gabon, and Kazakhstan have expressed interest in joining the forum, according to 2023 summit chair South Africa.

European countries, like heavyweight nuclear power France on the geopolitical stage, also expressed increasing interest in joining BRICS.

It is human nature everyone wants to align themselves with a winner and distance themselves from the loser. 

India and China are forecasted to be the world’s largest economies by the turn of the decade. 

So the EU, with its 20 trillion GDP (2023) could pivot east along the new Silk Road, where they see a future based on trade and prosperity, a better alternative to debt and war. 

“You’re more likely to debase your currency with a war, and it is twofold, depending on how big the war is. 

Wars can destroy goods, and there’s a destruction of productive capacity. So, you have less supply of goods in a war. A lot of times, if it’s a big war, you have to produce ammunition and military hardware at the expense of civilian consumer goods. So, wars tend to reduce the supply of consumer goods but increase the quantity of money. The governments today,don’t want to pay for wars. They don’t want to tell the taxpayer, ‘We’re fighting a war, so we’re raising your taxes.’ And they go out and borrow, creating larger deficits.

So, the Fed has to print more money,” said Peter Schiff. 

Peter Schiff sees a continued upside in gold, but what about Bitcoin? 

“Bitcoin peaked in November 2021, and priced in gold, it is almost 40% below that peak.

Despite all that money spent, all that hype, all those ETFs in the market, all that institutional buying. So, that tells you something. It tells you there are a lot of people who have been selling their Bitcoin into all the hype. And I think the people selling Bitcoin are a lot smarter, and know a lot more than the people who have been buying it.”

Peter is optimistic about the future of gold. With no end in sight for the Fed’s money printing, there’s a distinct possibility that gold’s price could increase by many multiples over the next couple of decades:

“I think the potential is much higher because we are going to print so much money. We’re going to have so much inflation that the dollar is going to lose a lot of value, and you’re going to need a lot of dollars to buy gold. If gold can go from $20 an ounce to $2,600 an ounce, it can go from $2,600 to $26,000, or even to $100,000. There’s no limit because, again, gold isn’t changing—it’s the value of the dollar that’s decreasing,” he said.