Sunday, August 20, 2017

Weak Data Sinks Dollar But Floats Stocks

More weak economic data today sent the U.S. stock market to record highs; at least the Dow and the S&P hit new records. NASDAQ not quite, but very close. The dollar hit a new low for the year. The dollar index, settling in at 95.10, right on the low for the day. That’s down .63. Some of the other currencies are strong. 

Aussie Dollar Strong 

The Aussie dollar was up about 1.3% on the day; one of the strongest of the currencies today. The Aussie dollar is very close to a 2-year high. The Canadian dollar was very strong this week on the back of a rate increase by the Bank of Canada. But the dollar falling across the board. 

Foreign Stock Gain 

Foreign stocks did better than U.S stocks, given their tailwind from appreciating currencies. Gold prices were up just over $11. Given the weakness in the dollar and the weak economic data, gold should be moving up a lot more than it is; I still think there is still a lot of short selling going on, but I smell the mother of all short squeezes coming. Silver is up about .30; back up to $16. remember was a low as $15.10 earlier in the week. 

Dollar Index Weakening 

The dollar index index at 95.10, just down over 7% on the year. It ended last year just above 1.02. In fact, in January, hit almost 1.04, so we’re down 8-1/2% since the January high, and the year is only half over. So I think there is a lot more momentum coming, especially in light of the economic data I’m about to get to. 

Retail Sales Disappoint 

The big report was the Retail Sales numbers, were supposed to bounce back from May’s -.3, and they did manage to revise that to down only .1%;but instead of getting a .1% rebound we had another drop. We had -.2% in June, so that is back-to back declines. In fact that is 3 consecutive months of falling retail sales. The picture gets worse when you strip out car autos. Last month, we got -.3%. That was unrevised. They were looking for June to be +.2% – instead we were down another .2%. And if you strip out gasoline, it’s even worse than that. They were looking for +4% and we got -.1%. So very very weak retail sales. This was supposed to be the quarter of the big bounce back! How are we going to bounce back in GDP without retail sales? 

Consumer Prices Weaker 

We also got consumer prices that actually came out weaker than expected. That is supposedly bad news, the way the Fed spins it, because the Fed’s trying to get higher inflation, at least the way the CPI measures it. They were supposed to get an increase of .1% for consumer prices following last month’s .1% decline and instead we came in unchanged. Year over year CPI, up 1.6% vs an estimate of 1.7%, and core, stripping out food and energy, they were looking for +.2%. instead we were up .1% 

Janet Yellen Wants More Inflation 

So when Janet Yellen testified before Congress earlier in the week, the only thing she expressed concern about is that inflation is not high enough. She does not seem concerned at all about the weakness in the economy.

- Source, Peter Schiff

Thursday, August 17, 2017

Dollar Falls as Balance Sheet Shrinkage Doubts Rise

The Dow and the NASDAQ set new record highs today as the dollar sold off near the end of the day to close at yet another low for the year. Remember, the dollar index rallied 6% between the election and the Trump inauguration. It has now fallen more than 10% since inauguration. Many currencies are at two-year highs. The Australian dollar is at a 2-year high, certain commodities are at a 2-year high, copper broke to a 2-year high; oil prices have been strong. Oil was up about $.80 today after being up about $2 yesterday. We’re now above $48.50. Getting close to $50/barrel again. 

Federal Reserve: “No Hike” 

One of the reasons for the strength in commodities is the weakness in the U.S. dollar. The catalyst for the weakness in the dollar today is the Federal Reserve, the FOMC, concluded their 2-day meeting today; their press release came out at 2.30pm ET and they announced that they did not decide to raise interest rates during this meeting. Nobody expected the Fed to raise interest rates, which is one of the reasons why they didn’t. 

Balance Sheet Normalization? 

There was some anticipation that the Federal Reserve may be more specific concerning when it might start quantitative tightening or ‘balance sheet normalization’ as they call it. So people wanted to know when that would start, and by how much are they going to let their balance sheet to run down but the Fed did not allude to any specifics. All they said is that the process will begin relatively soon. Now the last time they put out a statement, they said it would begin this year. Now they are saying it will begin ‘Relatively soon’. Why didn’t they leave it at “this year”? Because “this year” would be within the next six months. “Relatively Soon” leaves the statement comfortably vague enough to fit within the Fed’s slippery parameters. 

Gold Hanging In There 

The markets didn’t know what to do for the first half hour, but eventually the dollar broke, and gold finally popped up; it was up around $11-12. It was about unchanged going into the announcement and the knee-jerk reaction was a $2-3 selloff, then it came back to unchanged and then we had the rally. Gold stocks had a pretty good day today; the GDX up about 2.5%; the junior minors doing a little bit better. Yet these stocks have barely moved this year, but this is just getting started.

- Source, Peter Schiff

Monday, August 14, 2017

Peter Schiff Talks Copper vs Gold as an Investment

How does copper compare to gold as an investment? Peter Schiff examines and determines where is the best place to park your money in the short term.

Monday, August 7, 2017

Peter Schiff: “Markets Getting Plastered & Throwing Up In the Toilet Bowl”

Dollar Bulls will be feeling green, and Gold & Silver Bulls will be seeing green with what he said next…

Peter Schiff tells X22 Report the next crisis is coming, and it’s coming right to the US Dollar. In Peter’s own words, after this party, the markets are about to have a massive “hangover”.

Peter provides his latest analysis on gold, silver, the precious metals, the Fed, and the fiat dollar currency crisis that follows after too much of a good time.

- Source, X22 Report

Wednesday, July 26, 2017

Fed Pushing to Crash Economy on Trump's Watch

Is the FED going to crash the economy on purpose? IS this the elites best hope of taking down Donald Trump? Perhaps. Peter Schiff explains.

- Video Source

Sunday, July 23, 2017

Real Talk on Janet Yellen, Eric Peters, Martin Shkreli, Artificial Intelligence, and Donald Trump

Mark the date June 27, 2017.

That was the day that Federal Reserve Chair Janet Yellen said that we’ve experienced enough financial reform and improvements in global economies to prevent another financial crisis “in our lifetimes.”

that we’ve experienced enough financial reform and improvements in global economies to prevent another financial crisis “in our lifetimes.”

The ensuing sounds that follow such a statement are women weeping and men gnashing their teeth. Sounds so horrific that if we described them further, you would flee from your building.

Peter Schiff and Marc Faber are likely breaking their keyboards as they type at 200 words per minute to retort Yellen’s confidence. But let’s just point out the obvious.

When you hear this statement, you either laugh or you take a long, deep pause and wonder why and how Yellen could say something that surely will remain with her as long as history books log her name beside the title role in the Fed.

The short expectation is that central banks have no limitation to using liquidity as a cure to the slightest fiscal sneeze. Let the banks run wild. Let nations on the brink of insolvency multiple times receive massive bailouts.

Italy? You get a bailout before a “financial crisis…”

Greece… you get six.

-  Source, FIN

Thursday, July 20, 2017

Three Mining Executives Share Insights on Gold at the International Metal Writers Conference

Optimism was in the air at the International Metal Writers Conference 2017, as thought leaders and experts shared ideas and updates on the bullish junior mining sector–over 40 expert analysts and dozens of companies shared the conference floor.

The lustre is back on gold as the likes of Rick Rule, Peter Schiff, and John Kaiser shared their optimism on the precious metal. During the conference, INN also caught up with the following companies focused on their gold projects in the Yukon Territory, Nevada and Nunavut. Scroll down to view their updates...

- Source, Investing News, Read the Full Article Here

Monday, July 17, 2017

Breaking the bank: Bitcoin, oil & American retailers

We’re ready! Boom Bust is bursting with headlines today. Bianca Facchinei starts off by taking us into the world of Bitcoin as former head of Mt. Gox goes to trial in Japan. The charges? Embezzling millions of dollars in bitcoins. CEO Peter Schiff joins us today as he talks about the two things the world is always watching: oil and the dollar. Retail expert Carol Spieckerman brings her knowledge to the table as we ask the question: is American retail in decline? That, and more, on today’s episode of Boom Bust!

- Source, Russia Today

Friday, July 7, 2017

Why the Air Is About to Come Out of America's Bubble Economy

Peter Schiff discusses the growing bubble that is the US economy. Will the US be able to survive its coming recession, or will they collapse and crash, bringing down the rest of the world with it? Peter Schiff explains what he believes will unfold.

Friday, June 30, 2017

Peter Schiff: Trump Trade Is Over, Buy Gold Instead

Euro Pacific Capital CEO Peter Schiff is out with a bearish call on U.S. equities today, saying that the so-called “Trump Trade” is done and over with.

In fact, Schiff told CNBC that it’s time to dump stocks and buy gold instead:

“Remember that early in the Trump trade, you had a strong dollar. The dollar has surrendered 100 percent of its gains post-Trump’s election,” Schiff told CNBC. Additionally, “year to date the S&P is up, [but when] priced in gold the S&P is actually down.”

So instead of staying in the U.S. stock market, Schiff is urging investors to buy bullion, which “is up more than the Dow and more than the S&P,” with the yellow metal having rallied 11 percent this year. Gold rose to its highest price since the end of April on Friday, thanks largely to the continued drop in the U.S. dollar.

Along with gold, Schiff also says to look beyond U.S. borders for better returns. The fund manager sees emerging market strength continuing throughout the rest of the year, outpacing U.S. stocks by a wide margin.

- Source, ETF Daily News

Tuesday, June 27, 2017

Can't Trump this Opportunity in Gold

Some have dubbed it the "Trump Bump."

Since the election of Donald Trump, the stock market has soared. Many Americans believed the new president would turn things around and "make America great again!" Meanwhile, the sale of precious metals has slumped in the US. While sales of gold and silver have soared in places like China and India, Americans have been buying up US stocks.

But is the unbridled optimism warranted? Peter Schiff doesn't think so, and believes now is the time to think like a contrarian, and buy gold and silver.

While everybody is still piling into stocks, Peter believes this is an opportune time to invest in precious metals. Trump's election made a lot of people more optimistic about America's economic future. Gold and silver bullion coin sales at the US Mint have fallen to the lowest level in years, following the general trend in US precious metal markets. But as Peter points out, fundamentally things aren't any different than they were before the election. The precious metals slump in the US doesn't really make sense. The fact that the mainstream is looking the other way is a good indication that it's time to get into gold and silver - before it's too late.

As Peter put it, nothing has changed.

Yes, having Donald Trump president is better than having Hillary Clinton as president. But he is not a get out of jail free card for the economyThe problem is the damage is going to hit on Donald Trump's watch. Barack Obama got out of Dodge just in time."

Obama and the Fed did a great deal of damage to the economy. Trump inherited a mess, and he won't be able to fix it. Will all of the chaos surrounding his administration, it seems increasingly likely he's going to have a hard time pushing his agenda through. And as Peter points out, even if he does, it's not going to be enough. Even with a new administration, the fundamentals underlying the economy haven't changed. The Federal Reserve hasn't changed. The bubbles still exist.

- Source, Seeking Alpha

Friday, June 23, 2017

Peter Schiff: The Trump trade isn’t working, here’s what to buy instead

The seemingly never-ending record run for stocks doesn't mean the Trump rally is on solid footing, according to perma bear Peter Schiff.

"I think the trade has unraveled a bit," the Euro Pacific Capital CEO said last week on CNBC's "Futures Now."

Last week, stocks set new all-time highs, as investors shrugged off a weaker-than-expected May jobs report and remained at least partly motivated by elements of President Donald Trump's policy agenda. However, one of Wall Street's most relentlessly bearish voices was unimpressed.

"Remember that early in the Trump trade, you had a strong dollar. The dollar has surrendered 100 percent of its gains post-Trump's election," Schiff told CNBC. Additionally, "year to date the S&P is up, [but when] priced in gold the S&P is actually down."

So instead of staying in the U.S. stock market, Schiff is urging investors to buy bullion, which "is up more than the Dow and more than the S&P," with the yellow metal having rallied 11 percent this year. Gold rose to its highest price since the end of April on Friday, thanks largely to the continued drop in the U.S. dollar.

Meanwhile, Schiff said it's also time to look overseas, as foreign markets are actually outperforming the U.S.

"The U.S. markets have been pretty steady while foreign markets have been much stronger, [with emerging markets also being very strong," he said. "I expect this trend to continue and I think it will accelerate in the second half of the year."

In fact, while the S&P 500 Index is up almost 9 percent this year, Wall Street analysts have started urging investors to look at Europe, also up 9 percent year to date. Emerging markets, however, have soared over 19 percent so far in 2017.

But Schiff says more trouble could be ahead for the markets, especially given the Federal Reserve's next actions. While the CME Fedwatch Tool is predicting an over 90 percent chance that the Fed will hike rates during its meeting next week, Schiff doesn't expect any more hikes after June, which could damage the market.

"Even though the Fed claims to be data-dependent and they hike interest rates [in spite of weaker than anticipated data], I think the markets are starting to look beyond the hikes to the cuts," said Schiff. "I think we're getting ready to start a new easing cycle."

Schiff had previously cast doubt on the number of rate hikes. In February, the ardent Trump critic had pointed out that economic data was weaker than anticipated, blaming the Fed for Trump's election.

- Source, CNBC

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