Peter Schiff published a ringing endorsement of gold, silver, and platinum following yesterday’s coordinated central bank announcement to reduce the cost of emergency dollar funding for European banks.
Schiff – CEO & Chief Global Strategist of Euro Pacific Capital Inc and a long-time gold bull - recorded a video contending that the central banks’ actions will have extremely bullish implications for the precious metals space.
Highlights of the video include:
I think the world’s central banks rung a pretty loud bell today to buy precious metals…So we are increasing the global quantity of dollars in circulation, as a result the dollar is losing value. And I believe it’s going to lose a lot more value, not just against other fiat currencies, but against real money – gold and silver. And so I think investors should be buying. Those of you who have been on the sidelines, waiting for an opportunity to buy, I would not wait much longer, I would just buy. You have gold at around $1,700, silver around $32. I think these are good positions both to buy gold for the first time if you still haven’t bought, or to add to your positions if you already own. Also don’t overlook platinum…it is trading at quite a discount to gold; I don’t think that is going to last.
A lot of people think what is going on is a bailout for the euro zone. It is not. It’s a bailout for the banks on both sides of the Atlantic…I think this is a bank bailout ala QE2. This is not about economic growth, it’s about propping up insolvent financial institutions by creating inflation. People who really understand this dynamic will be buying gold.
The amazing thing is that the world is now easing when they barely tightened. That’s how vulnerable the global financial system is. They can’t even stand normal low interest rates; they have to be super low to keep this whole house of cards from imploding. It’s still going to implode. The people who understand the dynamics, they’re not buying dollars, they’re buying gold.
Now, gold and silver are up quite a bit today, but I think it’s just getting started. I think as people have more time to digest what all this means you’re going to see more buying coming into the precious metals market. Even if you look at the mining stocks – which are up pretty big today – if you look at the PE’s on these stocks, these are the lowest valuations in about ten years. What that shows me is that there is a lot of pessimism out there in the market. The professional investors still don’t know what’s going on. They still doubt this gold rally. That’s not a bubble, that’s a wall of worry that a bull market climbs.”
But I think a lot of people who have been questioning this market over the years are going to start believing in it. I think there is a lot of buying coming, and when that happens I think prices are going to move up in a very rapid way. So the key is to buy before that happens.
The video can be viewed in its entirety below:
Aurizon Mines Advances Duvay Gold Project
- The current field operations at Duvay are centered around a mini-bulk sampling program and drilling
- The first two pit sample concentrates have been shipped to an independent laboratory for analysis by fire assay; processing of the third mini-bulk sample has commenced
- Results from the first 13 hole drill program included the intersection of 83.19 grams per tonne of gold over 1.0 meters.
