Tags: peter schiff | gold | economy | recovery

Peter Schiff: Buy Gold Since 'Recovery Is an Illusion, Just Another Gigantic Bubble'

Image: Peter Schiff: Buy Gold Since 'Recovery Is an Illusion, Just Another Gigantic Bubble'

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By    |   Wednesday, 05 Oct 2016 01:34 PM

 


Peter Schiff, CEO of Euro Pacific Capital, advises that savvy investors shouldn’t be fooled by reports of any economic recovery. And the same investors should continue to buy gold despite the precious metal’s recent fall upon hard times.

"I'm certain that all this talk about a recovery is wrong," Schiff told CNBC. "The recovery is an illusion, it's just another gigantic bubble."

Schiff believes that economic data has "actually gotten a lot worse since [the Fed] didn't raise rates in September."


Schiff also said once you factor in the uncertainty of the very contentious presidential election, there’s no way the central bank will shock markets with an interest-rate hike, no matter how much advance warning the Fed offers.

"Everybody wants to go to heaven, but nobody wants to die, and that is the problem," said Schiff. "We're never going to have a real recovery until we kill this phony recovery, but for political reasons, that's not going to happen."

Schiff, who has runs a gold selling business, has long been a critic of the Fed's policies, and is perennially bullish on gold. He has long been predicting collapses in the U.S. economy and the stock market that have not materialized, CNBC reported.

Gold steadied on Wednesday after plunging to three-month lows the previous day in a sharp sell-off triggered by speculative selling and a break of key technical support levels, which pushed the metal below the key $1,300 level.

Spot gold was up 0.3 percent at $1,271.36 an ounce Wednesday, close to the low of $1,266.33 hit on Tuesday when the price tumbled 3.3 percent, its biggest daily loss in three
years. 


Traders said a generally stronger dollar during September had kept gold under pressure and that, combined with a break below the 100 day moving average around $1,310, accelerated losses as funds reversed bets on higher prices. A break of the 200-day moving average at $1,258 could spark another sell-off which could see the further losses toward $1,248 a Fibonacci retracement level.

"The stronger dollar, a break of key technical levels, speculative positioning which was very long, weak physical Chinese and Indian demand all contributed," Carsten Menke, analyst at Julius Baer, told Reuters.

 

"A lot of speculators headed for the exit yesterday and that happened in a quiet market. We could see more speculators head for the exit, you could see a downward spiral, and the big risk is it spills over into the physical market."

A higher U.S. currency makes dollar-denominated gold more expensive for holders of other currencies.

(Newsmax wire services contributed to this report).

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Peter Schiff, CEO of Euro Pacific Capital, advises that savvy investors shouldn’t be fooled by reports of any economic recovery. And the same investors should continue to buy gold despite the precious metal’s recent fall upon hard times.
peter schiff, gold, economy, recovery
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2016-34-05
Wednesday, 05 Oct 2016 01:34 PM
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