In this MUST WATCH CNBC interview, Peter Schiff states that in only a few years people will look back at $1700 gold with nostalgia as gold will be trading at $5,000/oz!
Schiff states the pace of inflation in accelerating, and gold’s ascent will also accelerate in the near future. Schiff states the USDX will be cut in half, and will trade around 40!
CNBC’s rebuttal: gold can’t go to $5,000/oz because nobody will be able to afford it.
Full interview below:
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![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
Bookmark this for “Peter Schiff was Right version 2.0″
If a person can’t afford $5,000 an oz for gold. Then they buy 1/10 oz or gram ingots.
Silver races up to $100 an ounce, staying with the 50 to 1 GTSR. You buy silver rather than gold, thus driving the price up. Everything is going according to plan. Bwahahahaha!
“CNBC’s rebuttal: gold can’t go to $5,000/oz because nobody will be able to afford it”
If Gold goes that high, no one will be buying anything ELSE!
They know it will be “the end” and it’s time to get hard commodities IN HAND.
Gold, Guns, Fuel, Food, etc. Oh, and SILVER :D
Or bows, arrows, crossbows and bolts if the ownership of guns in your country is illegal or hard to obtain. People will most likely store a lot of foods when prices go up too high instead of gold and silver because they don’t know the fundamentals of those two metals.
The “soft commodities” (food, fuel, etc.) will be worth A LOT!
In Gold Rush days, people bought lots of stuff with nuggets and gold dust.
Mining equipment was very expensive. Food was pretty high. Anything in
short supply was very expensive. I expect that during the “dark days”.
Hopefully my stack will double before that happens.
In July 2011 he predicted gold to be north of $10,000/oz. For a gold bug he sure has turned pessimistic. What is wrong with just saying that all signs point to higher PM prices in the future? Oh yeah, he has books to sell.
In order for gold to be worth 5x more than it’s current value, the dollar would have to be worth 5x less than it is now. Pick any number, it really doesn’t make any difference unless you have investments denominated in dollars.
Dollar can’t sink much lower, it is already worth close to zero!
The USDollar will be worth $.01 when Gold hits $2000/T oz.
The USDollar will be worth $.005 when Gold hits $4000/T oz.
The USDollar will be worth $.002 when Gold hits $10000/T oz.
The USDollar will be worth $.001 when Gold hits $20000/T oz.
All of this in 1933 Dollars, re: Gold Standard, 20 USD/T oz.
It can go waaaaaaaay lower, I’m afraid.
Didn’t hear anything about the reality of what happens with inflation. It takes more dollars to buy gold when gold goes up, but the dollar is not worth as much as it was before. The value of gold and silver doesn’t change, only it’s price relative to the currency it is being valued in.You are not making any profit from holding physical gold and silver, you are maintaining the value of your wealth. The reason the government hates gold and silver is because they can’t tax it with inflation.
“You are not making any profit from holding physical gold and silver, you are maintaining the value of your wealth.”
That is not entirely correct, because the fact that gold and silver prices are artificially suppressed needs to be factored in. That is, gold and silver, and especially silver, are way undervalued PRESENTLY relative to their ‘free-market’ prices, due to ongoing manipulation. When the manipulation can no longer continue, prices will increase by multiples faster than currency inflation, thus there is a profit (or transfer-of-wealth) component in investing in precious metals that many people understand. If gold and silver were fairly valued presently, then your statement would be right.
As per Izzy Friedman’s narrative, silver is such a great asset to hold because it is way undervalued, it is something that is constantly being consumed, and it is so easy for people to acquire and hold on their own.
On average, I agree with the idea that gold and silver maintain our purchasing power. But, there are times when profits above and beyond that are realized. From 2000-2010, for example, silver went up 600% but my cost of living did not. Therefore, any “profit” that was had comes from the difference between the cost of living between those years… and it was considerable. At many other times, this is not the case, however, and only maintaining the purchasing power occurs. I suppose that if just the right years or small range of years are picked, it can be shown that gold and silver did not maintain their buyers’ purchasing power. Don’t want to get into data mining, though, so will stick with 20-30 year averages.
What I stated was a simple, elementary, principle of economics, of which, there are few. Supply and demand is another one. Ed, what can I say? Inflation is greater than we are told, even during those ten years, and the goods from China were cheaper than we thought. The food in the grocery store sure isn’t cheap.
Yes, there are a few of those although this is not often understood by the gov and the Fed… at least in public. As we both know, things change or at least seem to in specific instances. The gold and silver bull from year 2000 to now was and still is pretty amazing but it is likely to be just the start of a much stronger move as dollars and other fiat currencies are printed to extinction.
Few of us have believed any of the drivel from the gov or the Fed on the rate of inflation or unemployment, so I am not using those rigged non-numbers but rather my own personal expenditures. I know that these are not as good as an average of the expenses of many people but it is more relevant to my own situation and therefore more valuable to me.
Those cheap Chinese goods will probably be the most expensive “cheap stuff” we’ve ever had. After all, they only cost us a little money up front plus a lot of jobs and a thriving middle class. Such a deal! :-(
Crissy….well stated. I think a lot of people forget how unpleasant life may be for a lot of people if gold was to ever reach $10,000/oz.
I don’t think that any of us doubt that the economy and much else will be in the toilet if gold reaches $10k per oz. The stacker community is a group of people who are not cheering on such a situation but are simply making plans not to join those who do not stack in that toilet bowl.
That is so true SS 3000 For us stackers to stay ahead of the game and survive there will be 100 times as people suffering from the excesses of currency debasement and inflation no to mention the resulting damage to the economy
There is a sea change out there for the masses.
HERE IS THE YOUTUBE LINK. The First Maj segment starts at 16:10 and runs to the end. The YouTube Video is dated Apr 28, 2012, so its not New, new, but still interesting.
Better yes, seems Silver Miners and stocks in the Silver Complex are being hidden, disappearing or being made hard to find by StockCharts, mis-categorizing and thus mis-directing investors looking for SILVER PLAYS. One Silver lining to all this is that they are in fact, equating Silver with Platinum which I agree with, as I think someday the price of Silver will equal or exceed that of Platinum.
STOCKCHARTS LINK better yet, try inputting SLV, SIVR or any other Major Silver Miner such as SSRI and you will come up with this Mis-Direction play……….yes I like Co-incidences, ONE IN A ROW.
DG
It’s their fault that they’ve put their savings in fiat currencies. I’ve tried to convince some people to keep their savings in physical gold and silver instead of keeping them in dollars but they’ve all declined and they said that they don’t need gold and silver. So, I’ve stopped at trying to convince everyone to buy precious metals.
Keep Trying, SK! They will eventually know you are correct, and say “That Kid is purdy SMART!”
It will be worth it if they buy some protection, before it is TOO LATE!
Probably the dumbest comment from the CNBC crew arrived when one fellow stated that ‘If gold was $5,000 an ounce, who could afford to buy it?’. I guess this fellow forgets that gold was once $20.67 an oz. and then $35 an oz. for a considerable time. To anyone who bought gold then, it must seem astronomical in price NOW, let alone what it could after a few more years worth of the current printing frenzy.
LMAO Peter sure put these people in there place made them look so lame. Of course people are still going to buy if it hits $5000 an oz, I cant fathom it but I’ll dream Lol
Peter is a very smart and credible source. When he says we will see $5000 gold by 2014 I believe him.
Regarding his prediction of the USDX being cut if half: If this does happen, then it would mean the purchasing power of average Americans will drop in half, and since so many are already so poor, we can expect massive popular unrest.
Thorishere, You can also expect “The Second American Civil War”!
Remember to stock up on “Beans, Bullets and Band-Aids”
Ranger from Texas
USDX will remain pretty steady… it is only a measure of relative strength to other currencies.
Heavily Weighted towards the Euro, ~ 58%.
Here is the info from Kitco’s USDX chart (yuk, KITCO!!! Sorry)
US Dollar Index (USD)
Delayed 30 minutes
The U.S. Dollar Index® is computed using a
trade-weighted geometric average of six currencies.
The six currencies and their trade weights are:
Euro
57.6 %
Japan/yen
13.6 %
UK/pound
11.9 %
Canada/dollar
9.1 %
Sweden/krona
4.2 %
Switzerland/franc
3.6 %
These contract specifications are subject to change.
Please consult the FINEX if you have any questions.
This is really depressing. I was hoping to see gold/silver at that level by end of year.
You are hoping the dollar will crash before the end of the year? Me too, I am not holding that many dollars.
I see that both you girls are totally prepared, then!
As for me and most of the rest of the world, more time would be a gift from above.
I’m still not prepared since I don’t have a high income to buy everything that I need. I am also not holding that many dollars so it won’t be a big loss for me. All I need is to get a weapon legally, get 1000$ in face value copper pennies and then exchange these pennies for an ounce of gold.
If USDX is cut in half that means the dollar’s purchasing power has been cut by a lot more than half. The index only compares the dollar to a bunch of other currencies that are also rapidly losing purchasing power, mostly the euro. So if the dollar falls by 50% against other currencies, then we are in really big trouble.
You just hit the nail on the head. The dollar had probably dropped seriously but due to the drop in value of other currencies the index is holding steady. We are seeing it though by the inflation on food, fuels, and other items.
LOL! I have been know to describe the currency indices as “the order of the turds circling the drain”
Oh my God. Another “When” The otherr day ”When” was $12,400.00
Heck I’ve lost my imaginery money already.
“When” is so, so elusive.
Worth of the Dollar:
When the Fed raids all savings accounts . IRA’s and 401k’s to pay a great deal of the National debt,
you will have no dollars to worry about. Afterall payment of the National Debt is a taxpayer liability
not the govmint. And it will be legal for them to do so.
It’s weird in the market today because the US dollar index dropped and gold and silver didn’t go up a lot. If gold is traded at 5000$ per ounce, then silver will also trade at about 90.91$ per ounce if it takes 55 ounces of silver to buy one ounce of gold.