Why Is the Retail Sector Struggling? People Are Broke – Especially Millennials

When we reported on the Toys R Us bankruptcy, we argued that it wasn’t just about shifting shopping patterns away from brick and mortar to online companies. A recent article on TechCo complaining that millennials are broke backs up our assertion.
As we pointed out, online retail sales have increased significantly, but they don’t account for the total decline in sales in brick-and-mortar stores. Peter Schiff has argued the problems in the retail sector reveal disturbing economic truths about middle America.
Another reason people are shopping on the internet, other than just the convenience of not leaving your house when you’re doing your shopping, is the fact that the average American shopper is broke. They can barely afford to buy the stuff that they’re buying. In fact, most people are buying stuff that they can’t afford. They’re just buying anyway and they’re using a credit card… Retailing is a shrinking market because Americans’ pocketbooks are shrinking, their paychecks are shrinking.’
Data on consumer debt backs up Peter’s contention that Americans are putting a lot of their purchases on plastic. He went on to say we need to look at the bigger picture when analyzing retail woes.

This post was published at Schiffgold on SEPTEMBER 28, 2017.

Euros, Dollars and Central Bank Manipulations

Peter Schiff has been talking a lot about the weakening dollar. In a recent Schiff Report video, Peter said he sees the ‘mother of all dollar bear markets’ on the horizon. The dollar has already dropped about 12% on the year, and it’s on track for its worst year since 1985. That was the beginning of a decade long bear market for the dollar. Peter says he thinks this one will be worse.
I think this one is going to be the mother of all dollar bear markets, and I think the dollar is going to fall much further than it did in any prior bear market.’
The following article by economist Dr. Daniel Lacalle, published at the Mises Institute FedWatch, provides some further insights into monetary policy by looking at the strength of the euro in relation to the dollar. His analysis sheds light on the relationship between strong and weak currencies, and the cost and benefits of each.
The primary purposes of the incorrectly named ‘unconventional monetary policies’ are to debase the currency, stoke inflation, and make exports more competitive. Printing money aims to solve structural imbalances by making currencies weaker.

This post was published at Schiffgold on SEPTEMBER 14, 2017.

Trump at His Most Brazen

The media has taken President Trump to task for all manner of false or exaggerated claims, but surprisingly little has been said about Trump’s most glaring forays into abject hypocrisy. Recently, on the Joe Rogan podcast, economist Peter Schiff outlined how Candidate Trump rightly questioned the reliability of unemployment data and stock market performance, but reversed himself completely on those fundamental views after the election.

This post was published at Euro Pac on Friday, September 1, 2017.

Don’t Forget About Silver: Possibly the Bargain of the Century

Gold recently cracked through the $1,300 resistance level. Geopolitical instability continues to push the yellow metal higher as investors seek safe haven.
But as the spotlight shines on gold, it’s important not to forget about silver. Analysis shows it may well be the bargain of the century.
As Peter Schiff said in his most recent Gold Videocast highlighting the gold breakout, ‘$1,310 is still a low price for gold relative to where it is going. And of course, silver is an even better buy.’
In fact, silver is tremendously undervalued. In July, Peter pointed out the huge spread in the silver-gold ratio, which currently stands at over 75:1. This means you can buy almost 80 ounces of silver with one ounce of gold. Consider that the historic average ratio is around 16:1.
So, the fact that you can buy 80 ounces of silver for one ounce of gold is an incredible buying opportunity. This is silver on sale. It’s one of the greatest silver sales of all time, relative to the price of gold.’

This post was published at Schiffgold on AUGUST 31, 2017.

It’s a Scary World Out There; Gold Is the Safe Haven

Gold finally broke through and held above the $1,300 resistance level this week.
There are a number of factors in place that could help sustain a gold bull run, but the biggest driver right now is fear.
And the fear isn’t unjustified. It’s a scary world out there.

As an article in the Economic Times put it, ‘the surge in the price of gold appears to be more than a ‘technical’ move. Instead, it smacks of fear in the markets.’
A weak dollar has certainly been a factor in the rising price of gold. But as the ET report points out, gold has resisted rallying even though the greenback has been weakening all year. And as Peter Schiff noted in his most recent Gold Videocast, gold is not just rising in dollar terms.
Gold now is not only rising in terms of dollars, but it’s finally rising in terms of everything. Gold is now going up in yen terms. It’s going up in Swiss frank terms, even though those currencies are rising as well. This is a key factor. And I think now that we have cleared out that resistance – there are a lot of people who thought there was no upside in gold. Well, they’re about to find out just how much upside there was.’

This post was published at Schiffgold on AUGUST 30, 2017.

Five Reasons to Buy Silver Now

Silver is generally treated like gold’s little brother, and tends to get lost in the shuffle. But a recent Business Insider article listed five good reasons to buy silver.
Like gold, silver is money. It’s historically been a good safe-haven investment and a hedge against inflation. But it also serves as an industrial metal. Silver is used in energy production, computers and electronics, and the biomedical industry.
As Peter Schiff pointed out in a video last month, silver is extremely undervalued right now. The current silver to gold ratio stands at 75:1. This means you can buy almost 80 ounces of silver with one ounce of gold. Consider that the historic average ratio is around 16:1.

So, the fact that you can buy 80 ounces of silver for one ounce of gold is an incredible buying opportunity. This is silver on sale. It’s one of the greatest silver sales of all time, relative to the price of gold. This is an incredible buying opportunity.’
Business Insider offers five additional reasons that silver prices will likely surge in the future.

This post was published at Schiffgold on AUGUST 22, 2017.

Fundamentals Point to Bullish Future for Silver

Peter Schiff isn’t alone in saying silver is extremely undervalued right now. In fact, one analyst believes silver offers a ‘once-in-a-decade opportunity.’
In a report published at MarketWatch, Investing Haven lead analyst Taki Tsaklanos said investors need to look at silver’s fundamentals.
We are bearish for 2017. But essentially, we see a once-in-a-decade opportunity in the gold and silver market.’
Analysts say basic supply and demand will drive the silver market in the future. Total silver mined in 2016 fell by 0.6% to 885.8 million ounces. Silver scrap supply fell to 139.7 million ounces in 2016, despite higher silver prices. It was the first decline in overall silver production since 2002.
Gold Forecaster founder Julian Phillips told MarketWatch silver supply in 2016 was dropped to its lowest since 2013, silver production was down last year for the first time in 14 years, and the market saw a supply deficit for a fourth year in a row in 2016.
Silver ignores its fundamentals or it would be now climbing.’

This post was published at Schiffgold on JULY 17, 2017.

CME Group CEO: Gold Extremely Undervalued; Should Be $5,000 to $6,000 Per Ounce (Video)

In his Gold Videocast last week, Peter Schiff made the case that silver is extremely undervalued, especially when compared with gold.
In a recent interview with Neil Cavuto on Fox Business, CME Group Chairman Terry Duffy says gold is undervalued as well. He said he believes realistically, gold should be at $5,000 to $6,000 per ounce.
And at some point, the price will catch up with reality.
If you look at the price of gold today, just around $1,200 an ounce, and if you look at back in the early 80s. it was trading around $800 an ounce. So, if you adjust for inflation, you should have gold at around $2,000 or $3,000 an ounce, and if you look at what’s gone on in the world, it should probably be at $5,000 or $6,000 an ounce.’
Duffy said he thinks the main reason gold and silver remain undervalued has to do with the fact that most people misjudge and downplay the amount of instability and economic chaos in the world. But at some point, the blinders will fall off.

This post was published at Schiffgold on JULY 17, 2017.

Trump the Perfect Scapegoat for When the Fed Bubbles Pop

In his most recent Gold Videocast, Peter Schiff pointed out that Pres. Trump inherited an economic mess from Barack Obama. Even if he can manage to get his policies implemented in the midst of the political circus going on in D. C., it isn’t going to be enough to stop the downward economic spiral.
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 economy… The problem is the damage is going to hit on Donald Trump’s watch. Barack Obama got out of Dodge just in time.’
Brandon Smith at Alt-Market.com agrees that the economy is due to take a plunge. He takes things a step further, asserting that Trump is just the scapegoat the central bankers have been waiting for. Now they can nudge up interest rates and blame the chaos caused by popping bubbles on the president specifically and Republican policies in general.

This post was published at Schiffgold on MAY 25, 2017.