Peter Schiff’s Official Gold Blog http://blog.europacmetals.com OFFICIAL Gold Blog for Peter Schiff. His most current thinking about gold and silver. Latest videos, written content, late breaking news, commentaries, etc. Fri, 29 Aug 2014 14:23:47 +0000 en-US hourly 1 Court Freezes Assets of Merit Gold Executives http://blog.europacmetals.com/2014/08/court-freezes-assets-of-merit-gold-executives/ http://blog.europacmetals.com/2014/08/court-freezes-assets-of-merit-gold-executives/#comments Fri, 29 Aug 2014 14:23:47 +0000 http://blog.europacmetals.com/?p=5899 Continue reading ]]> A Los Angeles Superior Court judge has issued a restraining order freezing the assets of Merit Gold owners Peter Epstein and Michael Getlin. Also included in the court document is an order for Merit to cease and desist accepting payments from its customers. The judge found that it was very likely that the company “was permeated with fraud.”  A trial date has been set for October 14.

On August 5th, Merit Financial allegedly committed what appears to be a fraudulent transfer when it sold its assets to Credit Management Association for just $1.00. This triggered the restraining order.

If you missed the news this past February, the Santa Monica City Attorney’s Office had filed a consumer protection lawsuit against Seacoast Coin, Inc., which is the parent company of Merit Financial and Merit Gold and Silver. Merit Gold was one of the largest precious metals dealers in the nation and operated large national TV advertising campaigns.

Merit Gold allegedly used aggressive “bait and switch” tactics to lure in customers nationwide. The lawsuit said it would draw customers in to buy gold bullion at just “1% over cost.” Then, Merit salespeople apparently would trick customers into buying “collector” coins that carried very large mark-ups.

It is alleged that Merit falsely told customers various deceptive statements about their collectible products, including:

“That the coins are a better investment than bullion; that the coins offer more privacy than bullion; that the coins are not “reportable” on consumers’ taxes; that the coins can’t be confiscated by the government, while bullion can be.”

The complaint says that the coins that Merit sold had “none of these advantages.” City attorneys say that Merit swindled millions of dollars from its customers, many of whom were seniors.

Euro Pacific Precious Metals has never and will never sell “numismatic” or “collectible” gold and silver products. We do not recommend them to serious investors.

Please give us a call if you would like to speak more about this:
1-888-GOLD-160 (1-888-465-3160)

Blog 14 08 29 Bullion coins

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Jim Grant: The Word for Inflation Is “Bull Market” (Video) http://blog.europacmetals.com/2014/08/jim-grant-the-word-for-inflation-is-bull-market-video/ http://blog.europacmetals.com/2014/08/jim-grant-the-word-for-inflation-is-bull-market-video/#comments Thu, 28 Aug 2014 14:31:30 +0000 http://blog.europacmetals.com/?p=5881 Continue reading ]]> Jim Grant, publisher of Grant’s Interest Rate Observer, was interviewed by Steve Forbes. Grant gives a grim overview of the economy, saying that the Federal Reserve’s suppression of interest rates and the creation of “unimaginable amounts of digital money” since 2007 have caused major distortions. He argues that economic intervention leads to more economic intervention until the “the patient is over-medicated.” This is the same argument that Peter Schiff has made for years.

“Inflation is too much money and credit. That’s the cause. The symptoms are variable. The word for inflation is: bull market…

Gold is a universal currency. People recognize it at sight. The derivation of the term ‘sound money’ is – [Clang! He drops a gold American Eagle coin on the table]. Isn’t that lovely?”

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Clueless in Wyoming http://blog.europacmetals.com/2014/08/clueless-in-wyoming/ http://blog.europacmetals.com/2014/08/clueless-in-wyoming/#comments Wed, 27 Aug 2014 14:07:13 +0000 http://blog.europacmetals.com/?p=5877 Continue reading ]]> Central bankers from around the world got together last week in Jackson Hole, Wyoming for their yearly monetary mixer. We know they talked a lot about how central bank monetary policies could “help” the world with its economic woes. But there’s one thing we can be sure they didn’t discuss – how many of the world’s economic problems are created by these very same policies. In a new commentary, Steve Forbes analyses six areas about which these central bankers are completely clueless.

  1. The role of money: Central bankers think money controls economic activity, instead of the other way around. Thus, they believe they can successfully manipulate the economy into real growth with their monetary meddling.
  2. What money is: Money itself isn’t wealth. Money measures wealth and reflects marketplace activity. Creating more of it is counterfeiting, a.k.a. theft.
  3. Commerce does not cause inflation: On the contrary, central banks cause inflation when they create more currency.
  4. Manipulating interest rates is equivalent to price controls: Interest rates are the price we pay to borrow money. Just like any other price, the market should set them.
  5. The job of central banks is to keep the value of money stable: They have clearly failed at this. The gold standard is the best system ever devised for keeping the value of a currency stable. The whims of central planners have failed over and over, and nothing will change this time around.
  6. Monetary policy can’t cure an economy’s structural flaws: Taxes, regulations, and labor laws are suffocating economies all throughout the world. Even if central bankers were able to overcome the failures of central planning through monetary policy, they could not overcome the barriers of regulations.

Read the Full Article Here

Steve-Forbes

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Former Mob Boss: Avoid Wall Street, Buy Physical Gold (Video) http://blog.europacmetals.com/2014/08/former-mob-boss-avoid-wall-street-buy-physical-gold-video/ http://blog.europacmetals.com/2014/08/former-mob-boss-avoid-wall-street-buy-physical-gold-video/#comments Tue, 26 Aug 2014 13:47:43 +0000 http://blog.europacmetals.com/?p=5859 Continue reading ]]> Michael Franzese, a former mob boss who went straight following a 10-year prison term, thinks stocks are in a bubble. He says he has worked with many of the people on Wall Street and doesn’t feel comfortable letting “shady” characters handle his money. In 1986, Franzese ranked No. 8 on Fortune Magazine’s list of the 50 wealthiest and most powerful mob bosses.

Franzese says he thinks he can do better with his money than Wall Street speculators. In fact, his number one piece of advice to investors is to not even bother with stocks. He strongly recommends physical gold bullion specifically, because “No matter what, it’s always going to have value. Unlike stocks, where…you go to sleep, everyone tells you everything is wonderful, you wake up and everything is gone.”

Investors don’t need to trust an ex-mob boss with their wealth in order to recognize the truth of his words. As someone who had first hand experience dealing with the casino on Wall Street, Franzese wants no part of it. He prefers to have his money in his own hands, not in the system that has proven over and over again it can’t be trusted.

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Prominent Voices Warning of Stock Market Bubble http://blog.europacmetals.com/2014/08/prominent-voices-warning-of-stock-market-bubble/ http://blog.europacmetals.com/2014/08/prominent-voices-warning-of-stock-market-bubble/#comments Mon, 25 Aug 2014 14:02:34 +0000 http://blog.europacmetals.com/?p=5851 Continue reading ]]> Stocks continue to soar to record highs and the media breathlessly touts the economic recovery. But the Fed-fueled bull market for stocks can’t last forever. In an article from CNN Money, some renowned experts are issuing ominous warnings:

  • Nobel Prize-winning economist Robert Shiller says the stock market is looking very expensive. By his metric, stocks have only been at their current level three other times: 1929, 1999, and 2007.
  • Hedge fund king Carl Ichan says, “We are in an asset bubble.” He describes a “dangerous financial situation” dependent on the Federal Reserve continuously refilling the punchbowl to stimulate the economy.
  • Ex-Treasury Secretary Robert Rubin says that extremely low interest rates have caused major instability and could lead to another financial crisis. When the bubble pops and hedge funds all head for the doors at the same time there is a risk of a “contagion and snowballing effect.”

Read the Full Article Here

stock_market_bubble

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Why Gold Could Be the Best Hedge in the Next Market Correction (Pt. 3) http://blog.europacmetals.com/2014/08/why-gold-could-be-the-best-hedge-in-the-next-market-correction-pt-3/ http://blog.europacmetals.com/2014/08/why-gold-could-be-the-best-hedge-in-the-next-market-correction-pt-3/#comments Fri, 22 Aug 2014 19:13:35 +0000 http://blog.europacmetals.com/?p=5843 Continue reading ]]> This is the final installment in a three-part series exploring three key reasons why gold could be the best hedge in the event of a major market correction. For part one, click here. For part two, click here.

As we wrote previously, there are many stories in the news lately exploring the various ways to protect yourself from a major market correction. They talk about hedge funds shorting US municipal debt, junk bonds, and foreign bonds in Asia and the eurozone. However, hardly anyone in the media mentions the use of physical gold bullion to protect your savings from a stock market crash.  We believe gold will outperform any of these conventional “safe havens” for three key reasons.

The third promising factor for gold in the event of a major market correction is that there are simply few alternatives. Even the conventional “safe bets” don’t hold up to scrutiny in today’s environment.

Treasury bonds have been one of the most traditional investments for protecting savings and providing cash flow. However, bond yields are currently at record lows and will probably move even lower in the event of a market correction. The return on a 5-year Treasury has fallen by an average of 4.3% in each of the past three recessions. In the likely event that this trend continues in the next market correction, the nominal yield could become negative. In other words, investors would be paying the government to take their money!

But the most shocking insight is that this is happening already, when viewed in terms of real return. Real return is what investors take home after accounting for inflation. The Consumer Price Index (CPI) published by the Bureau of Labor Statistics showed inflation in June at 2.1%. Meanwhile, the yield on a 5-year nominal Treasury was 1.63%. So, the real return on these bonds is already negative.

This means that physical gold, which has grown more than 6% from its December 2013 lows, is already a better alternative.

Investments like Treasury bonds have a fixed yield denominated in dollars, while hard assets like gold have an intrinsic value. So if inflation is running at 6% and your bond yield is 2%, you’re actually losing 4 percentage points a year. However, the intrinsic value of physical gold would be appreciating 6% thanks to that same inflation.

This phenomenon is not unique to the United States. The rest of the world mimics the policies of the US and gets the same results. Bond yields in most foreign markets are also at historic lows. Various central banks continue to take the same actions as the Federal Reserve. Diversifying into foreign bonds can be just as poor an alternative.

As we wrote in the last two articles, we strongly believe physical gold to be one of the best options for protecting yourself from a major stock market correction. The first reason is because it is out of favor. We believe this makes it undervalued in the long-term. Second, many “weak hands” have abandoned the market, and serious long-term gold investors have established a floor to the price. Combine these with the fact that the traditional “safe havens” are just not what they used to be, and we believe that physical gold bullion is uniquely positioned to be the best hedge during the next market correction.

 

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Why Gold Could Be the Best Hedge in the Next Market Correction (Pt. 2) http://blog.europacmetals.com/2014/08/why-gold-could-be-the-best-hedge-in-the-next-market-correction-pt-2/ http://blog.europacmetals.com/2014/08/why-gold-could-be-the-best-hedge-in-the-next-market-correction-pt-2/#comments Wed, 20 Aug 2014 19:07:35 +0000 http://blog.europacmetals.com/?p=5832 Continue reading ]]> This is part two of three in a series exploring three key reasons why gold could be the best hedge in the event of a major market correction. For part one, click here.

As we wrote yesterday, there are many stories in the news lately exploring the various ways to protect yourself from a major market correction. They talk about hedge funds shorting US municipal debt, junk bonds, and foreign bonds in Asia and the eurozone. However, hardly anyone in the media mentions the use of physical gold bullion to protect your savings from a stock market crash.  We believe gold will outperform any of these conventional “safe havens” for three key reasons.

The second promising factor for gold is that many of the “weak hands” have been shaken out of the gold market. This means that short-term speculators who were just jumping on the bandwagon have exited the gold market. Those that remain are primarily long-term holders who understand the fundamentals of gold.

A primary example of these “weak hands” is those who held “paper gold” investments such as exchange-traded funds (ETFs). In this type of investment, you don’t actually own gold. You simply put your money into a fund that is invested in gold companies or gold bullion. This is very different from holding the physical precious metal yourself. These paper gold investments are very popular with short-term speculators who can make quick money if they’re savvy enough.

Not surprisingly, the speculators looking to make a quick buck have abandoned gold. As the price of gold began to fall, they were content to sell and cut their losses. This caused a vicious selling cycle that fed on itself and drove down the price of gold even further. The amount of gold ETF investments have fallen below 2010 levels, while gold prices are 20% above 2010 levels. This is a good indicator that a floor has been established.

As you can see in the chart from Casey Research published last year, ETF holdings took a huge dive, especially when compared to purchases of bullion. (Click on the image to enlarge it.)

paper gold versus bullion

This is a great illustration of the difference between those who solely buy paper gold and those who hold physical metals. Paper investors and gold speculators never understood gold as a way to protect their wealth from Fed-caused economic crises. On the other hand, owners of physical gold understand that they are holding their wealth in their hands, out of the reach of bureaucrats, central bankers and dollar devaluation.

As governments and central banks continue to double down on the exact same policies that got us into the economic mess we’re in, we can expect to see turbulent waters ahead. We believe gold will be the best hedge against the inevitable market correction.

Check back later this week to learn the third and final reason physical gold bullion is a better hedge than the mainstream alternatives.

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Why Gold Could Be the Best Hedge in the Next Market Correction (Pt. 1) http://blog.europacmetals.com/2014/08/why-gold-could-be-the-best-hedge-in-the-next-market-correction-pt-1/ http://blog.europacmetals.com/2014/08/why-gold-could-be-the-best-hedge-in-the-next-market-correction-pt-1/#comments Tue, 19 Aug 2014 20:59:19 +0000 http://blog.europacmetals.com/?p=5822 Continue reading ]]> This is part one of three in a series exploring three key reasons why gold could be the best hedge in the event of a major market correction.

There are many stories in the news lately exploring the various ways to protect yourself from a major market correction. They talk about hedge funds shorting US municipal debt, junk bonds, and foreign bonds in Asia and the eurozone. However, hardly anyone in the media mentions the use of physical gold bullion to protect your savings from a stock market crash.  We believe gold will outperform any of these conventional “safe havens” for three key reasons.

The first promising factor for gold is that it is heavily out of favor. That is to say, the financial media loathes the yellow metal. Bullish sentiment on gold is currently at its lowest level since 2004. Due to the 30% decline of gold in 2013, those who have long hated it have been doing a victory lap. This is despite the fact that gold rose nearly 600% from 2001 to 2012.

Gold’s detractors somehow see fit to celebrate being correct once in 13 years. However, being on the ball less than 8% of the time since 2001 is nothing to brag about. With that kind of batting average, they couldn’t make the cut on a little league baseball team, let alone presume to give advice on how people can protect their hard-earned wealth.

As our Chairman Peter Schiff has pointed out again and again, the fundamentals of gold remain unchanged. The natures of central banks and the bubbles they create have also remained the same. In light of this reality, the arguments of the so-called experts against gold completely miss the point. Fortunately for us, when the “experts” (none of whom saw the crisis coming in 2008) are down on gold, it presents an excellent buying opportunity. If they were all recommending gold, its price would likely be much higher than it is today.

Remember – one of the main benefits of owning gold and other physical precious metals is that there is no government official, no commissar, no Fed chairman standing between you and your money. You get to physically hold the metal that is storing your wealth. That means no one can devalue it with a snap of their fingers, the way the Federal Reserve does with dollars. We posted just last week about how the dollar has lost more than 80% of its value since Nixon took the US off the gold standard in 1971.

This fundamental truth about gold will be invaluable in the midst of the next financial calamity. When the next crash comes, central banks like the Fed will undoubtedly use the only tool they have – inflation. As mainstream investors see this, where will they seek refuge? Even Treasury Inflation-Protected Securities (TIPS) are linked to inflation measures notoriously suppressed by the government. Gold, meanwhile, is worth what it is worth on the market – regardless of what any government may claim.

Investors who took heed of Peter’s early warnings are already enjoying golden profits. The experts were doubtful back then, and they haven’t changed their tune. Fortunately, consensus does not determine where the market will move. That is left to the laws of economics.

Check back tomorrow to learn the second reason physical gold bullion is a better hedge than the mainstream alternatives.

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Today’s Key Gold Headlines – 8/19/14 http://blog.europacmetals.com/2014/08/todays-key-gold-headlines-81914/ http://blog.europacmetals.com/2014/08/todays-key-gold-headlines-81914/#comments Tue, 19 Aug 2014 13:26:03 +0000 http://blog.europacmetals.com/?p=5820 Continue reading ]]>

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The Global Economy Is In a Depression (Video) http://blog.europacmetals.com/2014/08/the-global-economy-is-in-a-depression-video/ http://blog.europacmetals.com/2014/08/the-global-economy-is-in-a-depression-video/#comments Mon, 18 Aug 2014 18:56:52 +0000 http://blog.europacmetals.com/?p=5812 Continue reading ]]> Jim Rickards, author of The Death of Money, was interviewed on RT. Jim checks off a daunting list of countries around the world experiencing economic difficulties and offers analysis of what is really going on.

What’s happening in Germany is happening all over the world. Germany’s economy contracted… Italy’s already contracted. France has two quarters in a row of zero GDP. The United States in the first half [of 2014]… did not even grow 1%… China is slowing down, and of course, Japan fell off a cliff. If you look around the world, it looks like we’re going into a global recession, except I would say this is a continuation of a global depression that began in 2007… This is not a normal recovery, not a normal business cycle…

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