Peter Schiff Explains Gold Decline (Video)

In his latest video blog, Peter Schiff explains why the gold price has been dropping, even though the fundamentals supporting the price of the yellow metal have never been better. With economic data continuing to prove that the American economy is not recovering, and with indebted nations looking to sell their gold reserves, Peter argues that the next big rally in gold is just around the corner. Don’t be scared off by bearish calls from institutional investors like Goldman Sachs – gold is still cheap!

“Not only is moving gold from European nations to Asian nations…bullish, because you’re moving gold from weak hands to strong hands. But it’s also bearish for the dollar, because now money that used to be in US Treasuries is going to be in gold bullion instead.”

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30 Responses to Peter Schiff Explains Gold Decline (Video)

  1. William says:

    Crazy thought… Could the US government print lots of $ and then, just as inflation takes off, begin to increase the reserve ratio on the banks ? Maybe even eliminating fractional reserve banking all together ? Then, we’d have the dollars in the system (spent into the system by the government) needed for full reserve banking ??? Or am I completely missing something ???

    • rob stevens says:

      That was exactly George Riessman’s proposed solution to keep the US dollar from collapsing. Riessman is a long time Objectivist, laissez-faire economist (and acquaintance of Murray Rothbard). He mentioned the idea at a lecture to the Von Mises institute, a couple of years ago. You can find a video of the lecture on line.

    • Dave says:

      It’d kill their profits. The FED’s there to protect them, not hurt them. That’s why we have gasoline at $3.50.

  2. Asghar Shah says:

    Peter GR8 Video just returned from Dubai & chated with 2 people who dream & Sleep Gold also considered the top 2 experts in there field they said it takes now $ 1650 to mine gold they expect to see it go to atleast $ 2000 long term one claimed $ 5000.( he is in the Dore business , scrap gold and silver business and now trying to get started in gold coin business to sell to the Banks ? Locally . By the way is there gold in Brazil ?

  3. Lars Pedersen says:

    How does Mr. Shah support the cost of mining gold at $1,650.00?

    • Asghar Shah says:

      Mr. Pedersen , all I am saying what I was told by these two people one them was mentioned in the book “the silver Bubble” by Stephen Faye’s & the money Rush ” by sandy Duncun during the Nelson bunker hunt silver crisis they are 40 year old private bullion dealers still in business . Perhaps Peter can answer the question what is the actual cost of mining Gold !

  4. jrj90620 says:

    Seems to me that all this Fed fiat creation,is increasing employment for a couple % of the population,while increasing prices for 100% of the population.I keep reading these housing stories,about how great it is for housing to be rising double digits,again.Why is Housing Mania II,the sequel,good?So.overall,like everything govt does,it is a net negative for the country.If govt used honest inflation numbers,it would show negative growth,in the economy.

  5. Larry Bodine says:

    Could it be that the stimulus causing a recovery, as planned, and that a bubble in gold has popped? The price of gold has been dropping steadily since November 2012. Maybe Goldman Sachs is right.

    • Domenic says:

      if what you are saying is correct then it would mean we live in a world where Banker & govn’t lies and manipulation are more powerful than truth and honesty. In other words, neo-Keynesianism has won out over real, free-market (Austrian) economics…at least, for the time being.

    • brutlstrudl says:

      Maybe, but I’m stacking in case they ain’t.

    • Bruno says:

      That’s rich!

  6. Bob says:

    The dollar bill will be used as toilet paper before too much longer.

  7. Med says:

    Wrong Shiffy you are WRONG you have been wrong on gold the last 18months and you are still making the call to buy. If gold goes to $2000 tomorrow you have still been WRONG the last 18months!!!!!!!!

    • Michael says:

      Peter has never said gold would only go up, only that gold is headed much higher. Wake up! :-)

    • Dave says:

      It’s a marathon, not a sprint. $6 Trillion added to the debt in the last 4 years. That’s an increase of 60%. Has everyone’s income increased by that much? Excluding banksters.

  8. super fly says:

    Mr. Bodine,

    The basis for your argument is that there has been a recovery. Think again.

  9. Vlad N says:

    the main question is, as Peter said, if gold doesn’t have any value, then why is it that the developed countries keep 60-70%+ of reserves in gold, and the BRIC countries have it less than 5%?

    Further, why did the gold have any value in the middle ages, when it also then had limited utility and intrinsic value?

    If the gold has no value as it pays no dividend and has no utility, then by the same reasoning the out of money options also should have no value, isn’t it?

  10. phil says:

    gold & silver is almost at bottom & may go sideways until 2015 area +/- 6-12 months & then EXPLOSION & INTEREST RATES WILL ALSO BE GOING UP TOO

  11. keith says:

    Larry, Goldmann Sachs has never been right, at least not in what they say publicly. They say things to get their clients (people they supposedly serve) to act in a way that allows Goldman to rip them off. They’ve done this repeatedly throughout their history so it’s nothing new. Goldmann Sachs however isn’t completely stupid in private. They told their clients to buy MBS while they shorted them, they told their clients oil was going down, while they bought oil, now they’re using their PR department to push the price of gold down so they can buy it as well.

  12. Arturo says:

    It must be nice to call for a major decline in gold and to be on the heavy short end of the market, thank you Goldman Sucks you keep screwing up the game in your favor.

  13. GrandmaAnalyst says:

    I see the heated “debate” continues – are gold and silver headed higher or lower – and then what about Bitcoin – an intangible based on pure MATH – try eating an electron – yet it too is soaring and probably the most “volatile” currency out there – and yet probably safer than the U.S. Dollar. Given the fact it tripled in price last month, though now trading about double – not a bad run. Then I see folks telling Peter He’s wrong-dead wrong and I have to ask “ABOUT WHAT?” If you mean near-term predictions, nobody can predict price volatility or change for the near term – except that silver typically has a sell off just before the third Friday of each month and a rise thereafter (read more elsewhere on why). The annual cycles of metals are fairly easy to spot-typically a rise after the summer months as production trims back and snow covers Canada, Alaska and Siberia. That cycle is ancient. If you mean Peter was wrong about the housing bubble and collapse, you may wish to check the newspapers from 06,07 and 08 again. If you mean he was wrong about metals moving from below $1000 USD to where they are now (and predicting higher) check the prices – they did. If you mean he’s wrong predicting that metals will continue to climb, then you must be banking on – what? – oh, dollars? on bitcoins? on Euros? HAHAHAHAHAHAHA – thank you. Its Monday. I needed a good laugh.

  14. Jake says:

    Put an end to this bullshit! Gold has a record of being the only source of real value
    for thousands of years. Name one currency that can duplicate that. You can’t. Humans are too shortsighted and that is why they make the same mistakes over and over. You can’t cure stupid………

  15. Michael Mahon says:

    Buy low; sell high. Price drops are good if you want to buy. You want the price to be low every single day except the day you sell. The real estate bubble is beginning to re-inflate, and with the unique financing opportunities right now, there may be safer havens than gold. When interest rates go up and real estate crashes again, it is unlikely to go much below the price levels of 2011-2012.

  16. Terry says:

    Could the ECB be trying to get all the gold from all the member countries in order to issue a new currency when the dollar and euro crash? Just a thought.

  17. April says:

    I’m down 52% on a gold & gold miners fund. I never thought gold would sell off like it has. How many years should I continue to hold with hope of recovering? Any ideas/suggestions?

  18. Dave says:

    Gold was $35 in 1971 when Nixon screwed the country on 8/15/71. The national debt was about $400 Billion. Now the debt is near $16.6 Trillion, or 41.5 times higher. This implies a gold price of $1452.5. With the exception of 1979-80, gold has followed the national debt quite nicely. Gold is now being sold at a discount!

  19. Bob says:

    There are the TBTF banks and there are the TFB banks.

    Inside of a few days the price of gold fell substantially to meet the predictions of the Goldmann Sucks.

    The bank is simply Too F%^&ing Big.

  20. Harry Lacasse says:

    I like the book “The real crash”