Euro Pacific CEO Peter Schiff says precious metals are the place to be, and to have been. "All you had to do was buy gold stocks 10 years ago and hold them...they're up 1200 percent," Schiff tells CNBC. "The Dow would have to be at 120,000 now to have kept pace."
"The point is, when are the bulls going to realize they've got it wrong, throw in the towel and start buying some gold?"
“I was a bear on the U.S. economy in 2000,” Schiff says. “I bought gold and silver and gold and silver mining stocks. The bulls bought the S&P 500 because they thought we had a great economy. Eleven years later, if you adjust for inflation (The S&P 500) has gone down quite a bit.”
|Gold bars, coins (AP photo)
Oil prices are going up because central banks are creating inflation by printing too much money, says Schiff, who has money invested in Australia, Scandinavia and South America as well as in China, Singapore and Hong Kong.
“That’s where the real economic growth is,” Schiff says, “and contrary to conventional wisdom, once the U.S. economy really collapses, the rest of the world is going to boom because they are subsidizing our economy.”
The Wall Street Journal reports that Colorado-based Newmont Mining Company, the world’s second-biggest producer of gold, has unveiled a plan to base its dividend payments on gold prices as the value of the precious metal continues to climb.
Newmont aims to boost its annual gold production to about seven million ounces by 2017, a 35 percent increase over its previously announced 2011 outlook of 5.1 million to 5.3 million ounces.
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