In his May Gold Letter, Peter Schiff dissects the gold market’s response to the sale of Cypriot gold reserves as part of an EU bailout plan. Contrary to mainstream opinions, Peter maintains that the movement of gold and wealth from West to East, from debtors to creditors, is a very bullish factor for gold long-term. The May Gold Letter also has an incisive commentary by Bud Conrad at Casey Research comparing paper and physical gold markets, as well as useful information about Euro Pacific Precious Metals international shipping. Enjoy!
“The most puzzling part of the investment business is seeing how the vast and largely economically illiterate masses interpret any given piece of news. Take the recent gold selloff: many large players were motivated to sell by news that Cyprus will have to liquidate its gold stockpiles to pay off acute debt obligations. But just a moment’s reflection shows this reaction to be knee-jerk.
The real story behind Cyprus’ deal has much more profound ramifications – and they are positive for gold.
The reaction to Cyprus’ forced gold sale re-affirms my belief that most Western investors remain in a state of extreme anxiety. This leaves no room for the kind of nuanced analysis that leads to wise long-term investment decisions.”
Continue Reading Peter Schiff’s Gold Letter
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Wow! Talk about possibilities…. I’m not sure why one should redeem gold especially at this point when the prices are on a decline. Surely, one can wait to redeem when the pricing is higher. Maybe one needs the right lens to see things rightly http://bit.ly/11NqoMA