Peter Schiff: Markets Repricing Now As Crisis ‘Bigger Than 2008' Unleashed
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this is going to be a massive economic collapse. When people keep saying gold's the in a bubble or silver's a bubble, I say no, no, no. It's the pin. You don't understand. The bubble is in the dollar. The bubble is in the US bond market. The bubble is in the whole US economy. This is a crisis much bigger than the '08 financial crisis for America. It's not going to be global. This is a complete repricing of gold and silver for the new monetary world order. >> Peter Schiff returns to the show. He's a chief market strategist at Europacific Asset Management and founder at Shift Gold. He's been correct on his calls for gold and silver. Welcome back to the show, Peter. Good to see you as always. Correct on uh >> Thanks for having me on, David. Always a pleasure to talk to you. >> Always a pleasure to have you on. Correct on gold and silver. Uh kind of correct also on Bitcoin. and we can get to that at the end. Uh we want to talk about sentiment on the entire investing space. Who's been buying all the gold? What's going to happen next to gold? As we speak today on Wednesday the 28th of January, uh the Fed just held rates steady to the market's um anticipation. And we have here 5359, $5,359 on gold and over 110 bucks on silver. And so, uh, couple of, uh, couple of months ago, actually last year you were on the show, you said back in October, you were telling, uh, critics of the price of gold that, uh, we should just wait. And the dollar is now at its lowest level in four years, even though Trump is starting to deny that. So, how much closer are we to a monetary crisis that you've been warning about? >> I think we're uh, a lot closer. In fact, that is precisely what gold and silver are telling you. I mean, gold's up $150 an ounce, you know, as we're talking here. New record highs above 5330. Silver is actually above 100 A14, not a record high because we got up to $1.17 on Monday. Uh, but you know, the metals are moving like this. This is a complete repricing of gold and silver for the new monetary world order. I think what's happening is central banks are moving out of dollars and into gold. So that the primary reserve asset backing up currencies is going to be gold as it should be. So the dollar's days of uh being the reserve currency and the exorbitant privilege that went along with it are coming to an end and that is a gamecher for the United States. Uh it means our days of living uh you know high on the hog and riding the global gravy train are over. Uh we can't live beyond our means anymore. We can't consume unless we produce. We can't borrow unless we save. And that means our entire economy that's been built on these uh trade deficits and uh and leverage and consumer credit. It's all going to implode. Uh this is going to be a massive economic collapse. This is a crisis much bigger than the '08 financial crisis for America. It's not going to be global. It's going to be a US crisis. It's going to be a US dollar and a US sovereign debt crisis. That's actually a positive for the rest of the world because the purchasing power that Americans lose, the rest of the world gains. The world is going to reclaim their productivity. The rest of the world's going to have more goods to consume and more capital to invest. They're not going to be sending our their goods here and loaning their capital to us. They're going to be investing their capital domestically and consuming their own production. So, their standard of living is going to go up. The standard of living in America is going to go down. And a lot of investors who aren't positioned for this outcome are going to see a tremendous loss in the real value of their stock and bond portfolios. You know, that's why they need to also divest. It's not just foreign central banks now that are buying gold and silver. private investors are just starting to move into the market. They have a long way to go, but a lot of investors are still very uh you know cautious uh about this move. They they don't really understand it. Uh some people think it's a bubble. They expect the price of gold and silver to come back down. Of course, they never expected it to go up. Uh and that's why they're not only reluctant to buy, but they're reluctant to buy the gold and silver mining stocks that are arguably the cheapest they've ever been. Even though these stocks have tripled or quadrupled, they're cheaper now than before. They tripled or quadrupled because their earnings have gone up much more than the share price because investors don't believe the earnings are sustainable because they expect the price of gold to come way down. But not only are they wrong to think that gold and silver prices are going to come crashing back down, they're actually going to keep rising. So a year from now, gold is going to be more expensive than it is right now. The same thing for silver. So at some point, investors are going to come to terms uh with this reality, and these stocks are going to go through the roof. But for now, you still have a second bite at the apple to buy them. If you didn't buy them before they tripled, you could still buy them before they triple again. and and more. And really too, what I think gold and silver are doing today, they're doing what subprime did in 2007. Subprime collapse was uh the the warning that the financial crisis was coming. It hit the following year. Gold and silver breaking out is a similar warning that the sovereign debt and dollar crisis are going to hit and they might hit even this year, but I would say either this year or or next year. >> Right, Peter? Going back to your sovereign debt crisis comment, what if someone told you, "Okay, I understand your concerns for the monetary system in the US and around the world, which we'll talk about in just a minute, but the US cannot have a sovereign debt crisis. That assumes that the US is able to default on its debt, which it's never done, which it will never do." How would you respond to that? >> Yeah. Well, sovereign debt crisis is not about default. It's about the fact that nobody wants to buy our sovereign debt, and so the only buyer becomes the Fed. And that is a crisis. When you can't find private buyers for your debt and your central bank has to do it, then you have massive inflation. So, it's the debt crisis that begets the currency crisis and runaway inflation. That so that's where we're headed. The uh the world order that you're talked about in the very beginning that's been pretty much brought up into the mainstream media in the last week at Davos at the World Economic Forum. Several world leaders including Mark Carney, PM of Canada, has said that the world order, the old world order is not coming back. There's a rupture now. What is he referring to? What is this uh you know emerging world order if you want to call it that? What does this look like? Yeah, it it it's the world where, you know, the US really occupies the center where the dollar is the lifeblood of the economy and everybody wants dollars and and we get to print them and we get to have this service sector economy where we consume what everybody else produces and we borrow the money that everybody saves and we get, you know, the easy part and the rest of the world does the hard stuff. That's coming to an end. I mean, and you know, and Donald Trump actually agitated to bring it to an end sooner because he doesn't understand it. See, Donald Trump looks at the global economy and thinks that we are the drivers because we buy everything. He doesn't understand that that's the easy part. Anybody can consume. The hard part is the production. And anybody who can produce can by definition consume what they've produced. But what you can't do is consume what you haven't produced. So if you separate America from the rest of the world, the rest of the world doesn't have a problem. They have a lot of goods that they produced. All they have to do is consume them. America on the other hand doesn't have the goods. So what are we going to do? Right? We we have we you we know we just have empty shelves and sky-high prices. The rest of the world has full shelves and lower prices. Who's in a better position? Before we continue with the video, let's talk about today's sponsor, Delete Me. Most New Year's resolutions fail because they require constant effort, but protecting your online privacy doesn't have to. Your personal information, like your name, address, and phone number, is often collected and sold by data broker sites. That's why I use Delete Me, a service that helps reduce that exposure. It takes about 5 minutes to set up, and then they handle the work for you all year. They scan for where your information appears and submit removal requests to hundreds of broker sites. I've been using it for more than a year now and they have reviewed over 325 listings to see if any data brokers have my personal information and they continue to check to make sure it stays off. Go to joinme.com/davidlin link down below or scan the QR code here and use davidin. That's my promo code at checkout to get 20% off all consumer plans. Take control of your online privacy today before somebody else does. Now back to the video. Speaking of the price action of gold and silver, this is a tweet you made earlier uh this week. Today's action in precious metals mining stocks is more evidence that there's no precious metals bubble despite record high closes in GLD and SLV. Most gold stocks posted modest gains and most silver stocks closed lower because the pullback from the highest scared investors. You talked about that earlier. Okay. So, what does a metals bubble look like just in the gold and silver prices? I'm not talking about the miners. What would that even look like to you, Peter? Well, it would look maybe something like what we saw in crypto, you know, you know, or or the dotcoms. Look, when you have a mania, right, it it it is driven by greed. What we see now in the precious metals market is fear. Fear that the market's going to drop. So, investors are approaching this sector with a high degree of caution. In a mania, in a bubble, you throw caution to the wind, right? Who cares? You know, in a mania, stocks get expensive and people look for ways to justify the high prices, right? That the pees go up. Gold stocks have gotten cheaper. Their pees have gotten gone down. Their price to cash flow has gone down. And so, people are justifying why gold stocks are not really worth what they're worth, right? So, when we are finally in the blowoff bubble stage of the gold bull market, and who knows how long it's going to last, you're going to see crazy valuations assigned to gold mining companies. In fact, you're probably going to see companies that don't even have gold become gold companies, right? Like during the dot bubble, right, a lot of companies just started adding.com to their name, right? So, they would get a pop. And you know during this crypto bubble a lot of companies decide to become Bitcoin treasury companies. They said we have a crypto strategy right? So what's going to happen during the gold bull market eventually companies are going to become gold companies right just to get in on it just to just some of the money that's going to be pouring indiscriminately into the sector right and everybody's going to be buying everybody's going to be talking about it. You go on CNBC today, yes, they will mention now after a year or two of ignoring gold completely, they will mention that it's at a new record high, but then they will go back to their normal coverage of, you know, AI or tech or crypto. Gold is not getting that much airtime. It's getting some airtime after getting no airtime. But when you're at the end of a bubble, you'll turn on CNBC, assuming they're still in business, and it'll be one gold mining company after another, right? You you'll have all these gold mining companies running commercials, right? I mean, so so we're we're nowhere near that. I mean, we are so early in in in this move. Okay, Peter, uh what about at Shift Gold? What have your clients been telling you for the reasons for why they've been buying gold? Have have those reasons been different um in the past couple weeks versus let's say a year ago? >> No, I mean it's the same. And you know, we had a hard time. You know, when silver was up around, you know, $40, $34, we were having a hard time getting people to sell it because they were afraid it was going to go down. Uh the same thing with gold. You know, when gold uh was 3,000, people were scared of buying it. Uh and I had a really pushed to get people to buy and they wanted everybody wanted to wait for a pullback. And I was like, "No, you're you can't wait. the market's not going to reward you. You got to just buy. And I I started saying, you know, people didn't want to buy the high. And I started saying, well, the longer you wait to buy the high, the higher the high you're going to buy. You know, I wanted people to know that that you've got to buy the high in gold and silver because if you know, if you don't buy the high, you're not going to buy, right? So, you've got to realize there's so much money that wants to come into this market because there's so much money that wants to get out of the US dollar. There is no big correction coming, right? Not yet. We're going to just keep on moving higher as people are afraid. I mean, we're climbing a wall of worry. Uh, you know, that is propelling this this bull market. Uh, but the customers at Shift Gold, you know, if they follow me, and that's why they've been buying from Shift Gold, they're buying gold and silver for the same reasons I am. It's it's it's a store of value. It's a safe haven. It's an inflation hedge. It's an alternative to holding cash, to holding dollars, to holding treasuries. But as it turns out, it's actually been an alternative to the stock market because people who have owned gold and silver have outperformed the US stock market, right? Everybody wants to talk about, oh, the Dow is at uh 50,000 almost. Yeah, it's worth less than 10 ounces of gold. You know, it was worth more than 40 ounces of gold 25 years ago. It's down 75%. Right. in terms of real money. So, there are no real returns in the US stock market. It's just inflation. >> Okay. Uh I'll get back to your market outlook in just a bit, but let's take a look at who's been buying gold. And I think we should understand this before we talk about what's next for gold and gold demand. So, this is an article from the Financial Times literally called who's been buying all the gold. And the conclusion of the article which is stated in the last paragraph here. This is a statement from the LBMA. Indeed, looking at the 10 months of the largest gold inflows into LBMA vaults, we consistently observe low export activity. Our proxy for central bank buying averaging just 12.12 tons. China has been doing a lot of the buying. Uh the bank of England has done uh a lot of exporting uh as well. But all these numbers from central banks have started declining uh in recent uh data. And so the question remains now, Peter, if central banks have been slowing down their purchases of gold, then who's been picking up the purchases of gold such that the price of gold has been railing to this extent? >> Yeah, as I said, I think we're starting to see um investor demand coming into the market that that wasn't there before. But central bank buying is still going on. So, you know, it's and I think it's going to pick up. I think I think the central banks that have been buying gold in the past are going to buy more gold in the future. And I think a lot of central banks that weren't buying gold are going to start to buy gold. >> Okay. What then is your the where do we go from here at $110, $114 silver and and and and uh and uh you know gold where where it's at. I was just at the Vancouver Resource Investment Conference. Pretty much everyone that came up to me on the floor was concerned about a market top. Several of the miners I spoke to seemed indifferent if silver fell back 50% toward $50. What did all these sentiments tell you? Yeah, I mean it it's it's bullish. I mean I didn't go to that conference, but you know I was at the New Orleans conference. Um and you know even though gold and silver had already made big moves going into that conference I there was a lot of people that were cautious. There were people advising taking profits selling and I was like no don't sell anything. I said you know you this is you ain't seen nothing yet. You know you got to stay long this market. I think one of the big mistakes that people are going to make is taking a triple and thinking that they did good. You know, uh you're you're leaving so much on the table. The only reason I am not buying a lot more personally is because I already have so much. So it's like I I do believe in diversification. I can't put all my eggs in one basket no matter how beautiful and shiny that basket may be. Right? So, yes, but I already have, you know, more than my fair share of gold and silver mining stocks. Uh, you know, there there are probably many billionaires, and I'm not quite one myself yet, but I'm sure I own more gold and silver mining stocks than your typical billionaire does, right? Because they they're way underinvested, right? And and and they're they're going to have to move a lot of money uh in into that sector. So I I'm holding on because I think >> a lot of prominent investors I spoke to uh at this conference, Rick Rule, even Ross Bey uh made some presentations at the conference, they're they're taking profits on some of their miners right now. Are you doing the same? Well, I think I know I thought Rick was taking profits in physical and maybe moving moving some of that into miners, but Rick Rick probably Rick has an even bigger position in mining companies than I do. So maybe >> Sure. Yeah. Okay. because he he's done so much financings and and and and gotten paid a lot of money, you know, by getting shares and he owns, you know, he so, you know, it may be prudent for him uh uh to pair back his positions, but he's he's in a very unique position. There's not many people that are uh as as as as well positioned in gold and silver mining stocks as Rick Rule. >> Okay. Well, let's let's let's uh finish off on the economy and uh and and talk about first inflation. Are you surprised or can you just explain to us why CPI isn't a lot higher than it is today uh given all these tariffs that have been implemented over the last year? I mean, you were correct in the fact that tariffs have were disrupted to the economy, but we're not really seeing that reflected in the CPI. Well, remember we had a very big increase in consumer prices, and it's possible that without the tariffs, we may have gotten some relief. consumer prices may have come down uh but for the tariffs so if the tariffs prevented prices from going down it's still money coming out of the pockets of Americans right they would have liked to have some relief on the price front but also the CPI has never been a great measure uh anyway I mean first of all the biggest part of it is owner's equivalent rent obviously the tariffs are not even factoring into that so I think you know individually there has been an impact uh on on prices, but also remember that a lot of the US companies, you know, front ran the tariffs. So, they imported a lot of stuff before the tariffs kicked in. And so, they were able to keep selling without raising prices. But, you know, as that inventory is depleted and we have to bring in new inventory that is subject to the tariffs, you're going to see the price uh reflected. Uh and of course, the weaker dollar is going to add to the upward pressure on prices. But the whole idea that you can have tariffs and not have higher prices is just an economic fallacy. Right? The whole purpose of a tariff other than raising revenue is to raise prices. Right? Tariffs are part of a protectionist, you know, policy. How do you protect local companies from competition? You make the foreign products more expensive. And so that's what the tariffs do. They add to the cost. And now if it's going to cost me more money to buy an import, maybe I'll buy an American product instead. That's how it works. If so, if tariffs didn't raise prices, then they wouldn't protect anybody. So we know they raise prices of Ste that that that is the the very purpose. And of course, if it worked the way Donald Trump says if we can have tariffs but not raise prices, but the government can collect hundreds of billions in revenue, where's the revenue coming from? If the Americans aren't paying the tariffs, who is? If the tariffs are really being paid by the Mexicans and the Canadians and the Chinese, then why have income taxes at all? Why have any domestic taxes? Just tax just have tariffs. And in fact, every country would do that. But the way you know that that's We used to have tariffs. Tariffs used to be one of the main revenue sources for the US government. Why did we get rid of the tariffs? Because Americans didn't want to pay them anymore. The politicians said, "You know what? Tariffs are costing the middle class and the poor a lot of money. Let's have a 16th amendment so we can have an income tax and then we'll shift the burden of government from the middle class to the rich. Let's tax Carnegie and Rockefeller and Vanderbilt. Let's tax all these guys. Let's tax their income." So, if we can amend the Constitution so we can tax the income of the rich, we can eliminate tariffs on the middle class. And that's what everybody voted for. They wanted to get rid of the tariffs because they understood, unlike Americans today or Donald Trump, the people who paid tariffs their whole lives knew where the money was coming from. It was coming out of their pockets and they wanted to get rid of the tariffs. So they made a deal with the devil to get the income tax. And of course, the devil came back and ended up taxing the middle class at rates much higher than they even conceived for the rich. And now Americans pay more, the middle class pay more in income taxes than they used to pay in tariffs, right? So we really got screwed by the government. But at least 100 years ago, people knew what tariffs were, right? If if if tariffs weren't paid by Americans, then we wouldn't have an income tax today. >> Well, then are you bullish on other countries manufacturing sectors? If let's say what you're saying is true, there's going to be less globalization, uh it stands to reason that perhaps other countries are either a forming their own trading blocks away from the US or b they're going to start producing a lot more stuff in house. We're going to have less global. >> Absolutely. And you know, I'm looking too, David. Gold's now up $180. It's at 5360. Silver's up three 12 bucks. We're at 11550. And I'm looking on my screen and a bunch of silver stocks are still in the red. They're still red. Silver's almost at a new record high and there are a lot of gold stocks that are barely up right now with gold. Gold, this is the biggest up day that gold has ever had dollar-wise and prior to this it was yesterday. Yesterday was the biggest update and now today just broke that record and we we may be up $200 today. We have a we have another I mean it so yeah I I I forgot your your question as I started talking. >> No, we Okay. What what are you bullish on right now besides gold and silver given these tariffs, given uh restricted trade, given less globalization? What does that do to global trade and yeah and asset allocation globally? >> I'm very bullish on energy right now and agricultural commodities. I think they're going to move. I think gold and silver are just leading the way. But it's, you know, it's it's not just precious metals. It's industrial metals, right? It it's this is going to be a commodity boom. Uh and you want to be positioned for that. I think the emerging markets are going to be the big winners. The brick countries are going to be a lot more uh prosperous when they no longer, you know, have the burden of supporting the US. Uh when their US dollar debt is basically extinguished through inflation, uh you know, there's going to be an economic boom outside the United States. So, uh I want to invest overseas. Uh foreign stocks, look, I mean, last year was the best year. my foreign dividend player strategy, you know, investing in dividend paying stocks, foreign stocks, it did 62% return last year. Imagine that. 62%. It's already up another 12% this year, and we're not even finished with January. So, you're talking about earning better than 70% on dividend paying foreign stocks in one in one year. So, this is a sea change. For 10 years, the world was buying US stocks. Now, they're selling US stocks. all that money is going to be sucked out of our economy, out of our markets. It's going home. And so, you need to get out in front of that, right? Which is, you know, what I'm doing. So, you want to be invested in foreign stocks and bonds, commodity linked investments, precious metals, mining companies. Uh, you know, I think the returns are going to be incredible. And you mentioned you want to get the hell out of crypto. It's Bitcoin and everything else. you know, uh I think I think we're going to we're the odds are pretty good uh that we're going to see a crash. >> Well, do you think that the crypto crowd has moved over to the precious metals crowd, which is why even though Bitcoin is still at what $90,000? It's not it's not like, you know, it hasn't collapsed yet since the last high, but it's still down. That but that that entire space, the sentiment is quite dry right now. It's quite um >> No, I think I think the Bitcoin people are still holding and hoping. I don't think they've sold. I don't think they've bought any gold or silver. Uh, I think they're still in this because it's a cult. They believe in this. Uh, but >> but is silver the next memecoin is basically what I'm trying to say. Yeah. But here behaving like a memecoin. Look what Bitcoin was sold to the investing public as digital gold, as an alternative to gold. That if you want to buy gold, if you believe that you need an inflation hedge, if you're worried about the dollar and you would you would normally buy gold or silver, buy Bitcoin instead because Bitcoin is better than gold. It's the new gold. It's digital gold. It's gold 2.0. And that was how it was sold. And when Bitcoin came on the scene, right, gold was in a consolidation phase. Gold went nowhere from 2011 to 2024. It just stayed in a range. You know, 1,500 to 2,000 was about where it was. And it was during that time period where the Bitcoin promoters were able to sell Bitcoin because they said, "Look, gold's going nowhere. Silver's going nowhere. They don't work anymore. They're not hedges anymore. The the world is moving away. Look at Bitcoin. Bitcoin is where everybody's going. Bitcoin is the new gold. So, sell your gold, buy Bitcoin. And that narrative helped drive Bitcoin up to $125,000, right? And plus Donald Trump and all the politics and the the Bitcoin ETFs and the the Bitcoin treasury companies. But what happened last year? Gold and silver blew that false narrative apart. Gold had its best year since 1979. Uh, and Bitcoin went down. So, that proves the narrative was false. Bitcoin is nothing like gold. It's not digital gold. What is it? Who the hell knows? But the one thing we know it's not is some kind of proxy for gold. It has zero correlation with gold. And if the world is trying to ddollize, they're not going to Bitcoin. But that's why people bought it, right? And in fact, if you go back to the peak from 2021, Bitcoin is down more than 50% from where it was over four years ago priced in gold despite all the hype. So, I think people are going to start throwing in the towel on Bitcoin this year. I think you're going to see an onslaught of selling coming out of the ETFs. And in fact, a lot of the money in Bitcoin ETFs. If you go back and look at when they first launched, the weakest stocks during those few weeks were gold and silver mining stocks, right? Why? Because the money to fund the inflows to uh the Bitcoin ETFs came out of gold. In fact, all 2024 and most of 2025, there were net outflows out of GDX and GDXJ. Where do you think that money went? Went into Bitcoin ETFs, right? That's what happened, right? And and so they're now they're going to try to reverse that. The people who sold their gold stocks and who sold their gold ETFs to buy Bitcoin are way worse off. Like look at Micro Strategy, the poster boy. Michael Sailor has been buying Bitcoin for over 5 years and he has spent $55 billion. His average cost is over 76,000. The current market price is 89,000. He's barely ahead. What? He's got a 15% paper profit. I mean, imagine if he had bought gold or silver or anything instead of Bitcoin. He would be much better off. Of course, the real problem with buying Bitcoin is you can't sell it. The only reason he has a 15% gain is because he's still buying it. He's buying it every week. If he tried to sell, Bitcoin's price would implode and he would be way down. What I don't understand, Peter, is that some people have been telling me that the higher gold goes, especially above $5,000, the more volatile the rest of the markets should become. The S&P is almost at 7,000 points. And so, the volatility just isn't there right now. And so, the notion that gold is hedging against some sort of scare or volatility or fear that you talked about earlier, why isn't that being reflected in the markets? Especially if you consider other economic data like the fact that the consumer confidence index by the Michigan survey is at the lowest point in over a decade. So we got >> 12 year low. It takes a little time like when subprime blew up everybody was complacent. By the way, gold's up $192 now. >> Um silver's almost 116. I think silver could take out that 117 high uh today. But um look, it's going to spill over. People say, "Why is it not reflected in the bond market?" Well, it will be. I mean, the fact is bond yields have been rising. They the Fed has been cutting rates and rates are higher than when the Fed started cutting. So, the bond market is already suspicious. Yes, we haven't had a crash in the bond market yet, but that doesn't mean we won't have one next week, next month. You're going to start to see it. The dollar has already started to roll over. So, this gold and silver are just the most sensitive. First gold, then silver, right? Subprime blew up first in ' 07 because it was the weakest link in the chain, but the rest of the chain was screwed up too that we had problems in the entire mortgage market. It just showed up first in subprime. So the problems that we have in the global monetary system are showing up first in gold. Gold was the most sensitive. It moved first, then silver. But we're going to start to see blowups in other markets after this. That's why I say this is the leading uh warning sign that most people are not heating because they don't even understand the problem. They don't they don't realize that there's an alarm, right? They don't realize that, you know, there's a bubble. Like when people keep saying gold's the in a bubble or silver's a bubble. I say, "No, no, no. It's the pin. You don't understand. The bubble is in the dollar. The bubble is in the US bond market. The bubble is in the whole US economy. And gold at 5,400 is what's pricking it, right? And silver at, you know, 116 is what's pricking that bubble. >> When when your critics say to you, and I see this in the comments sometimes, Peter, you've been a perma bear for a long, long time. So, this isn't any different than what you've called before. How would you respond to these criticisms? >> Yeah, I've been permanently right. You know, I mean, the problems that I have been warning about for decades are are bigger than ever. Yeah. And you know, if you look at my 10-year track record, I have more than doubled the return now on the S&P 500. You know, more than doubled. So, you can't say, "Hey, Peter, you you know, you were 10 years too early." No, I made more money. I made more money being early now. Yes, up until last year, I was underperforming the S&P. But you know what? Now I'm beating it. And so, what difference does it make where I was last year? What counts as where I am now, right? And and where I'm going to be in the future. Yes, I saw the problems early and warned about them. But if you understand the problems, you see them early. Right now, the people who don't understand the problem don't see it until after the crisis. So, for years, I warned about the housing bubble and the financial crisis that was coming. And you could have said I was a perma bear because I was warning about it for five or six years before it blew up. No, I just understood it. that people who didn't understand it had no idea it was coming and then they tried to figure out what happened after the fact. Now, yes, this bubble has been inflating a lot longer than the housing bubble because it's much bigger and I saw it coming from a mile away and I positioned early. I didn't, you know, I didn't, in hindsight, I could have waited, but most people aren't going to be positioned for it at all. So, you know, I'm going to win this game. I'm going to walk away from this poker game with everybody's chips. You know, it doesn't matter how many people had a bigger stack than I did last year. If they all go home broke and I got all their their money, right? I won, right? And so I I I was early, but I was always right. The people who think I've been wrong are they're the ones that are wrong. They just don't understand how right I was. >> By the way, uh can I just >> We're up 199 now. Remember I said we could go up $200. Nope. Now we're up $26. There it is. $200. Go. It's like watch my horse race. >> On my webinar earlier today when gold was up 150 I said you know I've never seen $200 up in one day and I think we might do it today and here we are up 206. >> How much higher does it need to go before you start taking profits Peter on your own holding? >> Take profits and do what? >> I don't know. By buy literally anything else. Gold uh oil and gas. You you liked oil and gas? >> I am buying I bought a lot more oil and gas stocks recently. Yeah. Look, I earn money, right? I manage money for a living. I have I have money coming in every month, right? I am not putting more money into gold and silver right now. I'm putting it into other things. I'm not selling my gold and silver because I think it's going a lot higher now. Could it could gold drop a little bit before? Sure. But, you know, I'm not trying to time the market. And even though I don't have capital gains, I have zero capital gains here in Puerto Rico. Look, and and look, you could have made an argument when gold was at 4,000 that you should sell some. All right. Well, now it's at 5,000, 5,400, the 6,000. I look, I think this is a game-changing event. I think this is a a a a realignment again of the monetary order and we the market is trying to replace gold. We don't know what gold should be. Should it be 10,000? You know, what we know is the old price was wrong, right? Gold and silver were mispriced for years. That's why I was pounding the table that people needed to buy it because I knew that this was coming. I didn't know exactly when it was coming, but I knew it would come. And now, you know, it's like, you know, now that it's happening, I don't want to get out of the trade. I need to stay in the trade because I understand that there's a lot more coming and and and and it's very significant what's happening. Okay. So, just a few more questions. I'll let you go. Uh can you just speak to us about the Japan bond market crash recently in the last couple days? Uh $7 trillion risk for global markets said Bloomberg. As you know, JGB spiked to uh multi-deade highs after the um prime minister announced recent fiscal measures. What does that mean for the rest of the investors globally um outside Japan? >> Well, look, the chickens are coming home to roost in Japan, too, but they've got a card to play that I think they're going to play and they're going to sell their treasuries. They're the biggest holder of US treasuries. the only way to have a temporary solution here to uh you know is to sell treasuries and reduce JGB supply. So what they have to do is sell a trillion dollars of treasuries and then get the cash and then buy back the trillion dollars worth of JGBs so that they can reduce their overall indebtedness without having to cause more inflation which is already a problem in Japan. So rather than causing inflation in Japan, they should just cause inflation in the United States, right? Because if they dump the treasuries, who's going to buy them? The Fed. The Fed's going to have to print a bunch of dollars to buy those treasuries. So we get the inflation. The mistake would be if the Bank of Japan prints yen, right? To keep interest rates from rising, it prints more yen to buy JGBs. That increases the money supply in Japan and makes a growing inflation problem worse. So the best thing Japan could do is torpedo us, right? Torpedo our economy. They can get some revenge uh and uh you know from from Nagasaki and Hiroshima. They could drop the atomic bomb on the US basically the financially selling their treasuries. >> That's what the Europeans could do. Uh there's there's there's talk that European uh pension funds could sell their treasuries. one one Danish pension fund already sold $100 million, but that's not that's not >> it's in their it's in their self-interest to get out of treasuries. But also, I mean, we just threatened to invade uh invade Greenland because we wanted it because we need it and because we said nobody can stop us. The only thing that can stop us is Trump's mind, Trump's own conscience and his moral compass. And the world is like screw that. You know, we don't want to live in a world where we have to be afraid of the United States, where the United States is the bad guy now. And and so we're going to take the US down a peg and we're going to dump these treasuries because the only reason that we are the biggest toughest guy on the block is because the rest of the world pays for it. You know, if we had to balance our budget, if we had to pay for our own defense by taxing American citizens, we couldn't have this big military, right? There's just just no way. But because the world is loaning us the money, we could do it. >> All right, Peter, final question. You you you've been pounding the alarm uh sounding the alarm bell on the fiscal issue for quite some time. Ever since you ran for the Connecticut Senate, 2010, I believe. Uh you were talking about how how dire the fiscal situation was then. What What about now? Let's say if you were, you know, to let's say you were in the Senate today, would would do you think the government has more or less of a cleanup job to do now than in 2010? >> No. I mean I mean the economy is in far worse shape today than it was in 2010. I mean think about uh the size of the Fed balance sheet. Think about how many years interest rates were at zero uh and how enormous the bubbles are and the distortions in our economy. We're you know I it's not even close. Uh that's why this crisis is going to be so much worse. We didn't swallow the medicine uh following the the 2008 financial crisis. We didn't allow the free market to correct the underlying imbalances that led to that crisis. Instead, we kicked the can down the road and made all the problems worse. And that's what I've been warning for all these years. Uh I've been pointing out the mistakes that have been made by the Fed and by government. And I've been preparing my clients for the eventual collapse, the outcome that I knew uh was unavoidable, you know. And it's interesting, too, because I've positioned myself to profit from all of the economic mistakes that the government made. But I didn't advocate for those mistakes. I advocated for policies that would actually undermine my investment position. I wanted the US government to do what was right for the country. But I knew they wouldn't do it. I knew they would just choose politics, right, and political expedience over sound economics. So even though I wanted the Fed to shrink the money supply, cut government spending, raise interest rates, my investment portfolio assumed they did none of that. I invested assuming they keep rates low, they keep running deficits, they keep printing money. That's not what I wanted to happen, but that's what I knew was going to happen. And I don't invest based on what I want. I invest based on what I know. And so I am positioned to profit from a crisis that I didn't want to happen that I would have tried to prevent it if I had the ability. But since I had no ability to prevent the crisis, at least I'm going to profit from it and at least my clients will profit from it. >> How did you essentially let final question how did you essentially short the government so to speak? What was in this portfolio besides gold and silver which we know? >> I mean that's what I did like with the subprime. Yeah, that was simple. I shorted subprime mortgage made some money there. But the way you uh you short the US is to buy gold and silver. That is a bet against the US, right? I bought foreign stocks. I bought foreign currencies. I mean, my whole everything that I positioned myself was a bet that the US was going to fail. I didn't want the US to fail. I wanted to succeed, but I I unfortunately I knew it couldn't because I know the policy mistakes that are ingrained in the culture, in the politics of it. And I think what also accelerated this was Donald Trump because, you know, when Donald Trump campaigned the last time, he really raised hopes that, oh my god, we're really going to get our fiscal house in order. We're really going to cut government spending. Look, Elon Musk is going to come in with Doge and and we're going to cut trillions, right? We're going to reduce the debt. It was such a believable pitch that I had a lot of clients, unfortunately, a lot of my clients close their accounts in the fourth quarter of 2024, in the first quarter of 2025, and missed the best year I've ever had. I mean, and not only was it the best year, it was the best year by mile. >> Because of Doge. >> Yeah. Well, because Trump won the election, and they believed that he was going to tackle all of the problems that I was so concerned about. So they said, "Hey, we don't need to own all this gold anymore. We don't need because Trump is going to solve the problems. He's actually going to solve the debt problem." I I was worried about the debt problem when Biden was president, but now that we got Trump and the Republicans, I'm not worried anymore. And so, you know, they they closed their accounts. I had record withdrawals. The the worst, you know, and and and the markets believe that. But now that we know that the Republicans were just talk that they ran Elon Musk out of town, right, so much for Doge, they didn't really cut anything. Uh, and the deficits have blown out of control because, you know, Donald Trump just recklessly cut taxes uh and and raise government spending. And the tax cuts that he brags about the most are the are the most harmful to the economy. No tax on tips, no tax on overtime, no tax on social security. None of those tax cuts stimulate economic growth. They are consumption targeted Keynesian pumppriming tax cuts that just fuel demand and inflation. And so the world is saying, "Okay, wait a minute. If the Democrats are going to do nothing about the debt problem and the Republicans who campaign on doing something about the debt problem are going to do nothing about the debt problem, if both parties are going to run the debt higher and higher, then what hope is there of ever getting this under control? Zero. So now the markets are like, "Okay, we need out, right? I'm not going to I'm not going to stay on this ship and ride it to the bottom of the ocean. We got to abandon ship, right? The dollar is going to get destroyed. there's no way this debt's going to be repaid honestly. Uh let's get out. And so it's just a it's a run on the dollar. It's a sell America trade. It's happening right now and it's going to turn into a fire sale. And you know, my advice is that people just get out now, you know, before there's a stampede. You know, that's and I've got the perfect funds, my strategies, my mutual funds that you could buy, you know, no load at any discount broker. You can go to europac.com and look at about my funds or you can set up an account and we manage separately managed accounts. But my portfolios are designed to profit from exactly what's about to happen because I knew this was going to happen a decade ago and so I've been positioning for a crisis that I knew was inevitable. I just didn't know when it was going to start. >> All right. Well, let's end it there then. Thank you very much, Peter. Appreciate your appreciate your time. So, besides your managed accounts, where else can we follow you? Where can we find you, Peter? Well, of course, I do my own podcasts. I'll be doing one tonight, you know, to talk about uh the Fed uh and uh you know, the the press conference today. You can listen to my podcast at shiftradio.com or on my YouTube channel. Uh follow me. You know, my I just went above 1.3 million followers on X. Uh so, make a point. Hopefully, I you know, that I just was on Tucker's uh show on X. Uh they just dropped the first half of my interview. Good >> uh on Monday. Uh so hopefully uh I get some new followers uh from him. He's got a huge following on X. But follow me there and you know, you know, subscribe to my YouTube channel. I'm on Tik Tok. I'm on Instagram, Facebook. You know, I'm I'm there. So make sure and follow me. But but become a client, too. Don't just help me spread the word. Save yourself. Recognize that this is a huge alarm. You know, they say they never ring a bell. This is a golden bell that is ringing and the sound is deafening. The problem is most people don't understand or don't hear it or have tuned it out. Uh, but I am telling you what this alarm means because I've been waiting for this alarm for years. The only thing that surprises me is how long long it took to sound. But I know exactly what it means because I anticipated it and I know exactly what you need to do uh to protect yourself. So, you know, let me help you. >> Congrats again on your gold and silver calls. So, uh, let's see how this plays out the next couple months. Peter, thank you so much again for your time. We'll see you soon. Take care for now. >> All right. Take care, David. >> Thank you for watching. Don't forget to like, subscribe, follow Peter in the links down below.
Peter Schiff: Markets Repricing Now As Crisis ‘Bigger Than 2008' Unleashed
Summary
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this is going to be a massive economic collapse. When people keep saying gold's the in a bubble or silver's a bubble, I say no, no, no. It's the pin. You don't understand. The bubble is in the dollar. The bubble is in the US bond market. The bubble is in the whole US economy. This is a crisis much bigger than the '08 financial crisis for America. It's not going to be global. This is a complete repricing of gold and silver for the new monetary world order. >> Peter Schiff returns to the show. He's a chief market strategist at Europacific Asset Management and founder at Shift Gold. He's been correct on his calls for gold and silver. Welcome back to the show, Peter. Good to see you as always. Correct on uh >> Thanks for having me on, David. Always a pleasure to talk to you. >> Always a pleasure to have you on. Correct on gold and silver. Uh kind of correct also on Bitcoin. and we can get to that at the end. Uh we want to talk about sentiment on the entire investing space. Who's been buying all the gold? What's going to happen next to gold? As we speak today on Wednesday the 28th of January, uh the Fed just held rates steady to the market's um anticipation. And we have here 5359, $5,359 on gold and over 110 bucks on silver. And so, uh, couple of, uh, couple of months ago, actually last year you were on the show, you said back in October, you were telling, uh, critics of the price of gold that, uh, we should just wait. And the dollar is now at its lowest level in four years, even though Trump is starting to deny that. So, how much closer are we to a monetary crisis that you've been warning about? >> I think we're uh, a lot closer. In fact, that is precisely what gold and silver are telling you. I mean, gold's up $150 an ounce, you know, as we're talking here. New record highs above 5330. Silver is actually above 100 A14, not a record high because we got up to $1.17 on Monday. Uh, but you know, the metals are moving like this. This is a complete repricing of gold and silver for the new monetary world order. I think what's happening is central banks are moving out of dollars and into gold. So that the primary reserve asset backing up currencies is going to be gold as it should be. So the dollar's days of uh being the reserve currency and the exorbitant privilege that went along with it are coming to an end and that is a gamecher for the United States. Uh it means our days of living uh you know high on the hog and riding the global gravy train are over. Uh we can't live beyond our means anymore. We can't consume unless we produce. We can't borrow unless we save. And that means our entire economy that's been built on these uh trade deficits and uh and leverage and consumer credit. It's all going to implode. Uh this is going to be a massive economic collapse. This is a crisis much bigger than the '08 financial crisis for America. It's not going to be global. It's going to be a US crisis. It's going to be a US dollar and a US sovereign debt crisis. That's actually a positive for the rest of the world because the purchasing power that Americans lose, the rest of the world gains. The world is going to reclaim their productivity. The rest of the world's going to have more goods to consume and more capital to invest. They're not going to be sending our their goods here and loaning their capital to us. They're going to be investing their capital domestically and consuming their own production. So, their standard of living is going to go up. The standard of living in America is going to go down. And a lot of investors who aren't positioned for this outcome are going to see a tremendous loss in the real value of their stock and bond portfolios. You know, that's why they need to also divest. It's not just foreign central banks now that are buying gold and silver. private investors are just starting to move into the market. They have a long way to go, but a lot of investors are still very uh you know cautious uh about this move. They they don't really understand it. Uh some people think it's a bubble. They expect the price of gold and silver to come back down. Of course, they never expected it to go up. Uh and that's why they're not only reluctant to buy, but they're reluctant to buy the gold and silver mining stocks that are arguably the cheapest they've ever been. Even though these stocks have tripled or quadrupled, they're cheaper now than before. They tripled or quadrupled because their earnings have gone up much more than the share price because investors don't believe the earnings are sustainable because they expect the price of gold to come way down. But not only are they wrong to think that gold and silver prices are going to come crashing back down, they're actually going to keep rising. So a year from now, gold is going to be more expensive than it is right now. The same thing for silver. So at some point, investors are going to come to terms uh with this reality, and these stocks are going to go through the roof. But for now, you still have a second bite at the apple to buy them. If you didn't buy them before they tripled, you could still buy them before they triple again. and and more. And really too, what I think gold and silver are doing today, they're doing what subprime did in 2007. Subprime collapse was uh the the warning that the financial crisis was coming. It hit the following year. Gold and silver breaking out is a similar warning that the sovereign debt and dollar crisis are going to hit and they might hit even this year, but I would say either this year or or next year. >> Right, Peter? Going back to your sovereign debt crisis comment, what if someone told you, "Okay, I understand your concerns for the monetary system in the US and around the world, which we'll talk about in just a minute, but the US cannot have a sovereign debt crisis. That assumes that the US is able to default on its debt, which it's never done, which it will never do." How would you respond to that? >> Yeah. Well, sovereign debt crisis is not about default. It's about the fact that nobody wants to buy our sovereign debt, and so the only buyer becomes the Fed. And that is a crisis. When you can't find private buyers for your debt and your central bank has to do it, then you have massive inflation. So, it's the debt crisis that begets the currency crisis and runaway inflation. That so that's where we're headed. The uh the world order that you're talked about in the very beginning that's been pretty much brought up into the mainstream media in the last week at Davos at the World Economic Forum. Several world leaders including Mark Carney, PM of Canada, has said that the world order, the old world order is not coming back. There's a rupture now. What is he referring to? What is this uh you know emerging world order if you want to call it that? What does this look like? Yeah, it it it's the world where, you know, the US really occupies the center where the dollar is the lifeblood of the economy and everybody wants dollars and and we get to print them and we get to have this service sector economy where we consume what everybody else produces and we borrow the money that everybody saves and we get, you know, the easy part and the rest of the world does the hard stuff. That's coming to an end. I mean, and you know, and Donald Trump actually agitated to bring it to an end sooner because he doesn't understand it. See, Donald Trump looks at the global economy and thinks that we are the drivers because we buy everything. He doesn't understand that that's the easy part. Anybody can consume. The hard part is the production. And anybody who can produce can by definition consume what they've produced. But what you can't do is consume what you haven't produced. So if you separate America from the rest of the world, the rest of the world doesn't have a problem. They have a lot of goods that they produced. All they have to do is consume them. America on the other hand doesn't have the goods. So what are we going to do? Right? We we have we you we know we just have empty shelves and sky-high prices. The rest of the world has full shelves and lower prices. Who's in a better position? Before we continue with the video, let's talk about today's sponsor, Delete Me. Most New Year's resolutions fail because they require constant effort, but protecting your online privacy doesn't have to. Your personal information, like your name, address, and phone number, is often collected and sold by data broker sites. That's why I use Delete Me, a service that helps reduce that exposure. It takes about 5 minutes to set up, and then they handle the work for you all year. They scan for where your information appears and submit removal requests to hundreds of broker sites. I've been using it for more than a year now and they have reviewed over 325 listings to see if any data brokers have my personal information and they continue to check to make sure it stays off. Go to joinme.com/davidlin link down below or scan the QR code here and use davidin. That's my promo code at checkout to get 20% off all consumer plans. Take control of your online privacy today before somebody else does. Now back to the video. Speaking of the price action of gold and silver, this is a tweet you made earlier uh this week. Today's action in precious metals mining stocks is more evidence that there's no precious metals bubble despite record high closes in GLD and SLV. Most gold stocks posted modest gains and most silver stocks closed lower because the pullback from the highest scared investors. You talked about that earlier. Okay. So, what does a metals bubble look like just in the gold and silver prices? I'm not talking about the miners. What would that even look like to you, Peter? Well, it would look maybe something like what we saw in crypto, you know, you know, or or the dotcoms. Look, when you have a mania, right, it it it is driven by greed. What we see now in the precious metals market is fear. Fear that the market's going to drop. So, investors are approaching this sector with a high degree of caution. In a mania, in a bubble, you throw caution to the wind, right? Who cares? You know, in a mania, stocks get expensive and people look for ways to justify the high prices, right? That the pees go up. Gold stocks have gotten cheaper. Their pees have gotten gone down. Their price to cash flow has gone down. And so, people are justifying why gold stocks are not really worth what they're worth, right? So, when we are finally in the blowoff bubble stage of the gold bull market, and who knows how long it's going to last, you're going to see crazy valuations assigned to gold mining companies. In fact, you're probably going to see companies that don't even have gold become gold companies, right? Like during the dot bubble, right, a lot of companies just started adding.com to their name, right? So, they would get a pop. And you know during this crypto bubble a lot of companies decide to become Bitcoin treasury companies. They said we have a crypto strategy right? So what's going to happen during the gold bull market eventually companies are going to become gold companies right just to get in on it just to just some of the money that's going to be pouring indiscriminately into the sector right and everybody's going to be buying everybody's going to be talking about it. You go on CNBC today, yes, they will mention now after a year or two of ignoring gold completely, they will mention that it's at a new record high, but then they will go back to their normal coverage of, you know, AI or tech or crypto. Gold is not getting that much airtime. It's getting some airtime after getting no airtime. But when you're at the end of a bubble, you'll turn on CNBC, assuming they're still in business, and it'll be one gold mining company after another, right? You you'll have all these gold mining companies running commercials, right? I mean, so so we're we're nowhere near that. I mean, we are so early in in in this move. Okay, Peter, uh what about at Shift Gold? What have your clients been telling you for the reasons for why they've been buying gold? Have have those reasons been different um in the past couple weeks versus let's say a year ago? >> No, I mean it's the same. And you know, we had a hard time. You know, when silver was up around, you know, $40, $34, we were having a hard time getting people to sell it because they were afraid it was going to go down. Uh the same thing with gold. You know, when gold uh was 3,000, people were scared of buying it. Uh and I had a really pushed to get people to buy and they wanted everybody wanted to wait for a pullback. And I was like, "No, you're you can't wait. the market's not going to reward you. You got to just buy. And I I started saying, you know, people didn't want to buy the high. And I started saying, well, the longer you wait to buy the high, the higher the high you're going to buy. You know, I wanted people to know that that you've got to buy the high in gold and silver because if you know, if you don't buy the high, you're not going to buy, right? So, you've got to realize there's so much money that wants to come into this market because there's so much money that wants to get out of the US dollar. There is no big correction coming, right? Not yet. We're going to just keep on moving higher as people are afraid. I mean, we're climbing a wall of worry. Uh, you know, that is propelling this this bull market. Uh, but the customers at Shift Gold, you know, if they follow me, and that's why they've been buying from Shift Gold, they're buying gold and silver for the same reasons I am. It's it's it's a store of value. It's a safe haven. It's an inflation hedge. It's an alternative to holding cash, to holding dollars, to holding treasuries. But as it turns out, it's actually been an alternative to the stock market because people who have owned gold and silver have outperformed the US stock market, right? Everybody wants to talk about, oh, the Dow is at uh 50,000 almost. Yeah, it's worth less than 10 ounces of gold. You know, it was worth more than 40 ounces of gold 25 years ago. It's down 75%. Right. in terms of real money. So, there are no real returns in the US stock market. It's just inflation. >> Okay. Uh I'll get back to your market outlook in just a bit, but let's take a look at who's been buying gold. And I think we should understand this before we talk about what's next for gold and gold demand. So, this is an article from the Financial Times literally called who's been buying all the gold. And the conclusion of the article which is stated in the last paragraph here. This is a statement from the LBMA. Indeed, looking at the 10 months of the largest gold inflows into LBMA vaults, we consistently observe low export activity. Our proxy for central bank buying averaging just 12.12 tons. China has been doing a lot of the buying. Uh the bank of England has done uh a lot of exporting uh as well. But all these numbers from central banks have started declining uh in recent uh data. And so the question remains now, Peter, if central banks have been slowing down their purchases of gold, then who's been picking up the purchases of gold such that the price of gold has been railing to this extent? >> Yeah, as I said, I think we're starting to see um investor demand coming into the market that that wasn't there before. But central bank buying is still going on. So, you know, it's and I think it's going to pick up. I think I think the central banks that have been buying gold in the past are going to buy more gold in the future. And I think a lot of central banks that weren't buying gold are going to start to buy gold. >> Okay. What then is your the where do we go from here at $110, $114 silver and and and and uh and uh you know gold where where it's at. I was just at the Vancouver Resource Investment Conference. Pretty much everyone that came up to me on the floor was concerned about a market top. Several of the miners I spoke to seemed indifferent if silver fell back 50% toward $50. What did all these sentiments tell you? Yeah, I mean it it's it's bullish. I mean I didn't go to that conference, but you know I was at the New Orleans conference. Um and you know even though gold and silver had already made big moves going into that conference I there was a lot of people that were cautious. There were people advising taking profits selling and I was like no don't sell anything. I said you know you this is you ain't seen nothing yet. You know you got to stay long this market. I think one of the big mistakes that people are going to make is taking a triple and thinking that they did good. You know, uh you're you're leaving so much on the table. The only reason I am not buying a lot more personally is because I already have so much. So it's like I I do believe in diversification. I can't put all my eggs in one basket no matter how beautiful and shiny that basket may be. Right? So, yes, but I already have, you know, more than my fair share of gold and silver mining stocks. Uh, you know, there there are probably many billionaires, and I'm not quite one myself yet, but I'm sure I own more gold and silver mining stocks than your typical billionaire does, right? Because they they're way underinvested, right? And and and they're they're going to have to move a lot of money uh in into that sector. So I I'm holding on because I think >> a lot of prominent investors I spoke to uh at this conference, Rick Rule, even Ross Bey uh made some presentations at the conference, they're they're taking profits on some of their miners right now. Are you doing the same? Well, I think I know I thought Rick was taking profits in physical and maybe moving moving some of that into miners, but Rick Rick probably Rick has an even bigger position in mining companies than I do. So maybe >> Sure. Yeah. Okay. because he he's done so much financings and and and and gotten paid a lot of money, you know, by getting shares and he owns, you know, he so, you know, it may be prudent for him uh uh to pair back his positions, but he's he's in a very unique position. There's not many people that are uh as as as as well positioned in gold and silver mining stocks as Rick Rule. >> Okay. Well, let's let's let's uh finish off on the economy and uh and and talk about first inflation. Are you surprised or can you just explain to us why CPI isn't a lot higher than it is today uh given all these tariffs that have been implemented over the last year? I mean, you were correct in the fact that tariffs have were disrupted to the economy, but we're not really seeing that reflected in the CPI. Well, remember we had a very big increase in consumer prices, and it's possible that without the tariffs, we may have gotten some relief. consumer prices may have come down uh but for the tariffs so if the tariffs prevented prices from going down it's still money coming out of the pockets of Americans right they would have liked to have some relief on the price front but also the CPI has never been a great measure uh anyway I mean first of all the biggest part of it is owner's equivalent rent obviously the tariffs are not even factoring into that so I think you know individually there has been an impact uh on on prices, but also remember that a lot of the US companies, you know, front ran the tariffs. So, they imported a lot of stuff before the tariffs kicked in. And so, they were able to keep selling without raising prices. But, you know, as that inventory is depleted and we have to bring in new inventory that is subject to the tariffs, you're going to see the price uh reflected. Uh and of course, the weaker dollar is going to add to the upward pressure on prices. But the whole idea that you can have tariffs and not have higher prices is just an economic fallacy. Right? The whole purpose of a tariff other than raising revenue is to raise prices. Right? Tariffs are part of a protectionist, you know, policy. How do you protect local companies from competition? You make the foreign products more expensive. And so that's what the tariffs do. They add to the cost. And now if it's going to cost me more money to buy an import, maybe I'll buy an American product instead. That's how it works. If so, if tariffs didn't raise prices, then they wouldn't protect anybody. So we know they raise prices of Ste that that that is the the very purpose. And of course, if it worked the way Donald Trump says if we can have tariffs but not raise prices, but the government can collect hundreds of billions in revenue, where's the revenue coming from? If the Americans aren't paying the tariffs, who is? If the tariffs are really being paid by the Mexicans and the Canadians and the Chinese, then why have income taxes at all? Why have any domestic taxes? Just tax just have tariffs. And in fact, every country would do that. But the way you know that that's We used to have tariffs. Tariffs used to be one of the main revenue sources for the US government. Why did we get rid of the tariffs? Because Americans didn't want to pay them anymore. The politicians said, "You know what? Tariffs are costing the middle class and the poor a lot of money. Let's have a 16th amendment so we can have an income tax and then we'll shift the burden of government from the middle class to the rich. Let's tax Carnegie and Rockefeller and Vanderbilt. Let's tax all these guys. Let's tax their income." So, if we can amend the Constitution so we can tax the income of the rich, we can eliminate tariffs on the middle class. And that's what everybody voted for. They wanted to get rid of the tariffs because they understood, unlike Americans today or Donald Trump, the people who paid tariffs their whole lives knew where the money was coming from. It was coming out of their pockets and they wanted to get rid of the tariffs. So they made a deal with the devil to get the income tax. And of course, the devil came back and ended up taxing the middle class at rates much higher than they even conceived for the rich. And now Americans pay more, the middle class pay more in income taxes than they used to pay in tariffs, right? So we really got screwed by the government. But at least 100 years ago, people knew what tariffs were, right? If if if tariffs weren't paid by Americans, then we wouldn't have an income tax today. >> Well, then are you bullish on other countries manufacturing sectors? If let's say what you're saying is true, there's going to be less globalization, uh it stands to reason that perhaps other countries are either a forming their own trading blocks away from the US or b they're going to start producing a lot more stuff in house. We're going to have less global. >> Absolutely. And you know, I'm looking too, David. Gold's now up $180. It's at 5360. Silver's up three 12 bucks. We're at 11550. And I'm looking on my screen and a bunch of silver stocks are still in the red. They're still red. Silver's almost at a new record high and there are a lot of gold stocks that are barely up right now with gold. Gold, this is the biggest up day that gold has ever had dollar-wise and prior to this it was yesterday. Yesterday was the biggest update and now today just broke that record and we we may be up $200 today. We have a we have another I mean it so yeah I I I forgot your your question as I started talking. >> No, we Okay. What what are you bullish on right now besides gold and silver given these tariffs, given uh restricted trade, given less globalization? What does that do to global trade and yeah and asset allocation globally? >> I'm very bullish on energy right now and agricultural commodities. I think they're going to move. I think gold and silver are just leading the way. But it's, you know, it's it's not just precious metals. It's industrial metals, right? It it's this is going to be a commodity boom. Uh and you want to be positioned for that. I think the emerging markets are going to be the big winners. The brick countries are going to be a lot more uh prosperous when they no longer, you know, have the burden of supporting the US. Uh when their US dollar debt is basically extinguished through inflation, uh you know, there's going to be an economic boom outside the United States. So, uh I want to invest overseas. Uh foreign stocks, look, I mean, last year was the best year. my foreign dividend player strategy, you know, investing in dividend paying stocks, foreign stocks, it did 62% return last year. Imagine that. 62%. It's already up another 12% this year, and we're not even finished with January. So, you're talking about earning better than 70% on dividend paying foreign stocks in one in one year. So, this is a sea change. For 10 years, the world was buying US stocks. Now, they're selling US stocks. all that money is going to be sucked out of our economy, out of our markets. It's going home. And so, you need to get out in front of that, right? Which is, you know, what I'm doing. So, you want to be invested in foreign stocks and bonds, commodity linked investments, precious metals, mining companies. Uh, you know, I think the returns are going to be incredible. And you mentioned you want to get the hell out of crypto. It's Bitcoin and everything else. you know, uh I think I think we're going to we're the odds are pretty good uh that we're going to see a crash. >> Well, do you think that the crypto crowd has moved over to the precious metals crowd, which is why even though Bitcoin is still at what $90,000? It's not it's not like, you know, it hasn't collapsed yet since the last high, but it's still down. That but that that entire space, the sentiment is quite dry right now. It's quite um >> No, I think I think the Bitcoin people are still holding and hoping. I don't think they've sold. I don't think they've bought any gold or silver. Uh, I think they're still in this because it's a cult. They believe in this. Uh, but >> but is silver the next memecoin is basically what I'm trying to say. Yeah. But here behaving like a memecoin. Look what Bitcoin was sold to the investing public as digital gold, as an alternative to gold. That if you want to buy gold, if you believe that you need an inflation hedge, if you're worried about the dollar and you would you would normally buy gold or silver, buy Bitcoin instead because Bitcoin is better than gold. It's the new gold. It's digital gold. It's gold 2.0. And that was how it was sold. And when Bitcoin came on the scene, right, gold was in a consolidation phase. Gold went nowhere from 2011 to 2024. It just stayed in a range. You know, 1,500 to 2,000 was about where it was. And it was during that time period where the Bitcoin promoters were able to sell Bitcoin because they said, "Look, gold's going nowhere. Silver's going nowhere. They don't work anymore. They're not hedges anymore. The the world is moving away. Look at Bitcoin. Bitcoin is where everybody's going. Bitcoin is the new gold. So, sell your gold, buy Bitcoin. And that narrative helped drive Bitcoin up to $125,000, right? And plus Donald Trump and all the politics and the the Bitcoin ETFs and the the Bitcoin treasury companies. But what happened last year? Gold and silver blew that false narrative apart. Gold had its best year since 1979. Uh, and Bitcoin went down. So, that proves the narrative was false. Bitcoin is nothing like gold. It's not digital gold. What is it? Who the hell knows? But the one thing we know it's not is some kind of proxy for gold. It has zero correlation with gold. And if the world is trying to ddollize, they're not going to Bitcoin. But that's why people bought it, right? And in fact, if you go back to the peak from 2021, Bitcoin is down more than 50% from where it was over four years ago priced in gold despite all the hype. So, I think people are going to start throwing in the towel on Bitcoin this year. I think you're going to see an onslaught of selling coming out of the ETFs. And in fact, a lot of the money in Bitcoin ETFs. If you go back and look at when they first launched, the weakest stocks during those few weeks were gold and silver mining stocks, right? Why? Because the money to fund the inflows to uh the Bitcoin ETFs came out of gold. In fact, all 2024 and most of 2025, there were net outflows out of GDX and GDXJ. Where do you think that money went? Went into Bitcoin ETFs, right? That's what happened, right? And and so they're now they're going to try to reverse that. The people who sold their gold stocks and who sold their gold ETFs to buy Bitcoin are way worse off. Like look at Micro Strategy, the poster boy. Michael Sailor has been buying Bitcoin for over 5 years and he has spent $55 billion. His average cost is over 76,000. The current market price is 89,000. He's barely ahead. What? He's got a 15% paper profit. I mean, imagine if he had bought gold or silver or anything instead of Bitcoin. He would be much better off. Of course, the real problem with buying Bitcoin is you can't sell it. The only reason he has a 15% gain is because he's still buying it. He's buying it every week. If he tried to sell, Bitcoin's price would implode and he would be way down. What I don't understand, Peter, is that some people have been telling me that the higher gold goes, especially above $5,000, the more volatile the rest of the markets should become. The S&P is almost at 7,000 points. And so, the volatility just isn't there right now. And so, the notion that gold is hedging against some sort of scare or volatility or fear that you talked about earlier, why isn't that being reflected in the markets? Especially if you consider other economic data like the fact that the consumer confidence index by the Michigan survey is at the lowest point in over a decade. So we got >> 12 year low. It takes a little time like when subprime blew up everybody was complacent. By the way, gold's up $192 now. >> Um silver's almost 116. I think silver could take out that 117 high uh today. But um look, it's going to spill over. People say, "Why is it not reflected in the bond market?" Well, it will be. I mean, the fact is bond yields have been rising. They the Fed has been cutting rates and rates are higher than when the Fed started cutting. So, the bond market is already suspicious. Yes, we haven't had a crash in the bond market yet, but that doesn't mean we won't have one next week, next month. You're going to start to see it. The dollar has already started to roll over. So, this gold and silver are just the most sensitive. First gold, then silver, right? Subprime blew up first in ' 07 because it was the weakest link in the chain, but the rest of the chain was screwed up too that we had problems in the entire mortgage market. It just showed up first in subprime. So the problems that we have in the global monetary system are showing up first in gold. Gold was the most sensitive. It moved first, then silver. But we're going to start to see blowups in other markets after this. That's why I say this is the leading uh warning sign that most people are not heating because they don't even understand the problem. They don't they don't realize that there's an alarm, right? They don't realize that, you know, there's a bubble. Like when people keep saying gold's the in a bubble or silver's a bubble. I say, "No, no, no. It's the pin. You don't understand. The bubble is in the dollar. The bubble is in the US bond market. The bubble is in the whole US economy. And gold at 5,400 is what's pricking it, right? And silver at, you know, 116 is what's pricking that bubble. >> When when your critics say to you, and I see this in the comments sometimes, Peter, you've been a perma bear for a long, long time. So, this isn't any different than what you've called before. How would you respond to these criticisms? >> Yeah, I've been permanently right. You know, I mean, the problems that I have been warning about for decades are are bigger than ever. Yeah. And you know, if you look at my 10-year track record, I have more than doubled the return now on the S&P 500. You know, more than doubled. So, you can't say, "Hey, Peter, you you know, you were 10 years too early." No, I made more money. I made more money being early now. Yes, up until last year, I was underperforming the S&P. But you know what? Now I'm beating it. And so, what difference does it make where I was last year? What counts as where I am now, right? And and where I'm going to be in the future. Yes, I saw the problems early and warned about them. But if you understand the problems, you see them early. Right now, the people who don't understand the problem don't see it until after the crisis. So, for years, I warned about the housing bubble and the financial crisis that was coming. And you could have said I was a perma bear because I was warning about it for five or six years before it blew up. No, I just understood it. that people who didn't understand it had no idea it was coming and then they tried to figure out what happened after the fact. Now, yes, this bubble has been inflating a lot longer than the housing bubble because it's much bigger and I saw it coming from a mile away and I positioned early. I didn't, you know, I didn't, in hindsight, I could have waited, but most people aren't going to be positioned for it at all. So, you know, I'm going to win this game. I'm going to walk away from this poker game with everybody's chips. You know, it doesn't matter how many people had a bigger stack than I did last year. If they all go home broke and I got all their their money, right? I won, right? And so I I I was early, but I was always right. The people who think I've been wrong are they're the ones that are wrong. They just don't understand how right I was. >> By the way, uh can I just >> We're up 199 now. Remember I said we could go up $200. Nope. Now we're up $26. There it is. $200. Go. It's like watch my horse race. >> On my webinar earlier today when gold was up 150 I said you know I've never seen $200 up in one day and I think we might do it today and here we are up 206. >> How much higher does it need to go before you start taking profits Peter on your own holding? >> Take profits and do what? >> I don't know. By buy literally anything else. Gold uh oil and gas. You you liked oil and gas? >> I am buying I bought a lot more oil and gas stocks recently. Yeah. Look, I earn money, right? I manage money for a living. I have I have money coming in every month, right? I am not putting more money into gold and silver right now. I'm putting it into other things. I'm not selling my gold and silver because I think it's going a lot higher now. Could it could gold drop a little bit before? Sure. But, you know, I'm not trying to time the market. And even though I don't have capital gains, I have zero capital gains here in Puerto Rico. Look, and and look, you could have made an argument when gold was at 4,000 that you should sell some. All right. Well, now it's at 5,000, 5,400, the 6,000. I look, I think this is a game-changing event. I think this is a a a a realignment again of the monetary order and we the market is trying to replace gold. We don't know what gold should be. Should it be 10,000? You know, what we know is the old price was wrong, right? Gold and silver were mispriced for years. That's why I was pounding the table that people needed to buy it because I knew that this was coming. I didn't know exactly when it was coming, but I knew it would come. And now, you know, it's like, you know, now that it's happening, I don't want to get out of the trade. I need to stay in the trade because I understand that there's a lot more coming and and and and it's very significant what's happening. Okay. So, just a few more questions. I'll let you go. Uh can you just speak to us about the Japan bond market crash recently in the last couple days? Uh $7 trillion risk for global markets said Bloomberg. As you know, JGB spiked to uh multi-deade highs after the um prime minister announced recent fiscal measures. What does that mean for the rest of the investors globally um outside Japan? >> Well, look, the chickens are coming home to roost in Japan, too, but they've got a card to play that I think they're going to play and they're going to sell their treasuries. They're the biggest holder of US treasuries. the only way to have a temporary solution here to uh you know is to sell treasuries and reduce JGB supply. So what they have to do is sell a trillion dollars of treasuries and then get the cash and then buy back the trillion dollars worth of JGBs so that they can reduce their overall indebtedness without having to cause more inflation which is already a problem in Japan. So rather than causing inflation in Japan, they should just cause inflation in the United States, right? Because if they dump the treasuries, who's going to buy them? The Fed. The Fed's going to have to print a bunch of dollars to buy those treasuries. So we get the inflation. The mistake would be if the Bank of Japan prints yen, right? To keep interest rates from rising, it prints more yen to buy JGBs. That increases the money supply in Japan and makes a growing inflation problem worse. So the best thing Japan could do is torpedo us, right? Torpedo our economy. They can get some revenge uh and uh you know from from Nagasaki and Hiroshima. They could drop the atomic bomb on the US basically the financially selling their treasuries. >> That's what the Europeans could do. Uh there's there's there's talk that European uh pension funds could sell their treasuries. one one Danish pension fund already sold $100 million, but that's not that's not >> it's in their it's in their self-interest to get out of treasuries. But also, I mean, we just threatened to invade uh invade Greenland because we wanted it because we need it and because we said nobody can stop us. The only thing that can stop us is Trump's mind, Trump's own conscience and his moral compass. And the world is like screw that. You know, we don't want to live in a world where we have to be afraid of the United States, where the United States is the bad guy now. And and so we're going to take the US down a peg and we're going to dump these treasuries because the only reason that we are the biggest toughest guy on the block is because the rest of the world pays for it. You know, if we had to balance our budget, if we had to pay for our own defense by taxing American citizens, we couldn't have this big military, right? There's just just no way. But because the world is loaning us the money, we could do it. >> All right, Peter, final question. You you you've been pounding the alarm uh sounding the alarm bell on the fiscal issue for quite some time. Ever since you ran for the Connecticut Senate, 2010, I believe. Uh you were talking about how how dire the fiscal situation was then. What What about now? Let's say if you were, you know, to let's say you were in the Senate today, would would do you think the government has more or less of a cleanup job to do now than in 2010? >> No. I mean I mean the economy is in far worse shape today than it was in 2010. I mean think about uh the size of the Fed balance sheet. Think about how many years interest rates were at zero uh and how enormous the bubbles are and the distortions in our economy. We're you know I it's not even close. Uh that's why this crisis is going to be so much worse. We didn't swallow the medicine uh following the the 2008 financial crisis. We didn't allow the free market to correct the underlying imbalances that led to that crisis. Instead, we kicked the can down the road and made all the problems worse. And that's what I've been warning for all these years. Uh I've been pointing out the mistakes that have been made by the Fed and by government. And I've been preparing my clients for the eventual collapse, the outcome that I knew uh was unavoidable, you know. And it's interesting, too, because I've positioned myself to profit from all of the economic mistakes that the government made. But I didn't advocate for those mistakes. I advocated for policies that would actually undermine my investment position. I wanted the US government to do what was right for the country. But I knew they wouldn't do it. I knew they would just choose politics, right, and political expedience over sound economics. So even though I wanted the Fed to shrink the money supply, cut government spending, raise interest rates, my investment portfolio assumed they did none of that. I invested assuming they keep rates low, they keep running deficits, they keep printing money. That's not what I wanted to happen, but that's what I knew was going to happen. And I don't invest based on what I want. I invest based on what I know. And so I am positioned to profit from a crisis that I didn't want to happen that I would have tried to prevent it if I had the ability. But since I had no ability to prevent the crisis, at least I'm going to profit from it and at least my clients will profit from it. >> How did you essentially let final question how did you essentially short the government so to speak? What was in this portfolio besides gold and silver which we know? >> I mean that's what I did like with the subprime. Yeah, that was simple. I shorted subprime mortgage made some money there. But the way you uh you short the US is to buy gold and silver. That is a bet against the US, right? I bought foreign stocks. I bought foreign currencies. I mean, my whole everything that I positioned myself was a bet that the US was going to fail. I didn't want the US to fail. I wanted to succeed, but I I unfortunately I knew it couldn't because I know the policy mistakes that are ingrained in the culture, in the politics of it. And I think what also accelerated this was Donald Trump because, you know, when Donald Trump campaigned the last time, he really raised hopes that, oh my god, we're really going to get our fiscal house in order. We're really going to cut government spending. Look, Elon Musk is going to come in with Doge and and we're going to cut trillions, right? We're going to reduce the debt. It was such a believable pitch that I had a lot of clients, unfortunately, a lot of my clients close their accounts in the fourth quarter of 2024, in the first quarter of 2025, and missed the best year I've ever had. I mean, and not only was it the best year, it was the best year by mile. >> Because of Doge. >> Yeah. Well, because Trump won the election, and they believed that he was going to tackle all of the problems that I was so concerned about. So they said, "Hey, we don't need to own all this gold anymore. We don't need because Trump is going to solve the problems. He's actually going to solve the debt problem." I I was worried about the debt problem when Biden was president, but now that we got Trump and the Republicans, I'm not worried anymore. And so, you know, they they closed their accounts. I had record withdrawals. The the worst, you know, and and and the markets believe that. But now that we know that the Republicans were just talk that they ran Elon Musk out of town, right, so much for Doge, they didn't really cut anything. Uh, and the deficits have blown out of control because, you know, Donald Trump just recklessly cut taxes uh and and raise government spending. And the tax cuts that he brags about the most are the are the most harmful to the economy. No tax on tips, no tax on overtime, no tax on social security. None of those tax cuts stimulate economic growth. They are consumption targeted Keynesian pumppriming tax cuts that just fuel demand and inflation. And so the world is saying, "Okay, wait a minute. If the Democrats are going to do nothing about the debt problem and the Republicans who campaign on doing something about the debt problem are going to do nothing about the debt problem, if both parties are going to run the debt higher and higher, then what hope is there of ever getting this under control? Zero. So now the markets are like, "Okay, we need out, right? I'm not going to I'm not going to stay on this ship and ride it to the bottom of the ocean. We got to abandon ship, right? The dollar is going to get destroyed. there's no way this debt's going to be repaid honestly. Uh let's get out. And so it's just a it's a run on the dollar. It's a sell America trade. It's happening right now and it's going to turn into a fire sale. And you know, my advice is that people just get out now, you know, before there's a stampede. You know, that's and I've got the perfect funds, my strategies, my mutual funds that you could buy, you know, no load at any discount broker. You can go to europac.com and look at about my funds or you can set up an account and we manage separately managed accounts. But my portfolios are designed to profit from exactly what's about to happen because I knew this was going to happen a decade ago and so I've been positioning for a crisis that I knew was inevitable. I just didn't know when it was going to start. >> All right. Well, let's end it there then. Thank you very much, Peter. Appreciate your appreciate your time. So, besides your managed accounts, where else can we follow you? Where can we find you, Peter? Well, of course, I do my own podcasts. I'll be doing one tonight, you know, to talk about uh the Fed uh and uh you know, the the press conference today. You can listen to my podcast at shiftradio.com or on my YouTube channel. Uh follow me. You know, my I just went above 1.3 million followers on X. Uh so, make a point. Hopefully, I you know, that I just was on Tucker's uh show on X. Uh they just dropped the first half of my interview. Good >> uh on Monday. Uh so hopefully uh I get some new followers uh from him. He's got a huge following on X. But follow me there and you know, you know, subscribe to my YouTube channel. I'm on Tik Tok. I'm on Instagram, Facebook. You know, I'm I'm there. So make sure and follow me. But but become a client, too. Don't just help me spread the word. Save yourself. Recognize that this is a huge alarm. You know, they say they never ring a bell. This is a golden bell that is ringing and the sound is deafening. The problem is most people don't understand or don't hear it or have tuned it out. Uh, but I am telling you what this alarm means because I've been waiting for this alarm for years. The only thing that surprises me is how long long it took to sound. But I know exactly what it means because I anticipated it and I know exactly what you need to do uh to protect yourself. So, you know, let me help you. >> Congrats again on your gold and silver calls. So, uh, let's see how this plays out the next couple months. Peter, thank you so much again for your time. We'll see you soon. Take care for now. >> All right. Take care, David. >> Thank you for watching. Don't forget to like, subscribe, follow Peter in the links down below.