A new US Housing bubble has arrived, a.k.a. the echo bubble, due to institutional speculation.
But this time the subprime debt is also concentrated in delinquent auto / student loans putting $4 trillion at risk.
US equities are also in bubble territory with the Dow higher only a few percent in 2017 compared with the spectacular 10%+ gains of the PMs.
Financing the proposed fiscal stimulus plans could double the Federal spending deficit from $1 to $2 per year, eroding the purchasing power of the US dollar.
Once the public realizes its been duped by overinflated housing / stock prices, the herd will panic and the next PMs stampede will begin in earnest.
The Euro Pacific Gold Fund, EPGFX may represent a value opportunity for investors interested in the sector who wish to avoid individual share risk.
At some point in the near future, institutions and deep pocket investors, central banks and sovereign funds could unintentionally corner the PMs shares / bullion.
Unless investors heed his warning, Peter Schiff expects entire generations of retirees to be wiped out by the coming inflationary maelstrom.
Takeaway point - a global gold standard is inevitable and merely a matter of time.
Bill Murphy of GATA.org returns with upbeat commentary on the PMs sector.
With silver higher by approx. 15% and gold over 10% already this year, the silver market appears to be winding up for an explosive move.
For the technically savvy, a bullish head and shoulders pattern implies a possible run back to the $21+ peak of 2016.
Once silver clears the first target, $26 is the next area of resistance to overcome.
With US housing in an echo bubble, US stocks at lofty levels unseen since the year 2000 peak the PMs appear to present a solid valuation.
Guest Biographies
Bill Murphy
GATA.org
Bill Murphy, GATA Chairman Murphy grew up in Glen Ridge, N.J., and graduated from the School of Hotel Administration at Cornell University in 1968. In his senior year he broke all the Ivy League single-year pass-receving records. He then became a starting wide receiver for the Boston Patriots of the American Football League. He went on to work for various Wall Street brokerage firms and specialized in commodity futures. He began as a Merrill Lynch trainee and went on to Shearson Hayden Stone and Drexel Burnham. From there he became affiliated with introducing brokers and eventually started his own brokerage on 5th Avenue in New York. He now operates an Internet site for financial commentary, www.lemetropolecafe.com.
Peter Schiff President & Chief Global Strategist Peter is one of the few investment advisors to have correctly called the current bear market before it began and to have positioned his clients accordingly. As a result of his accurate forecasts of the mortgage meltdown, credit crunch, and decoupling of commodities, precious metals, and foreign markets from the U.S. Dollar, he has become a sought-after economic commentator on a range of investment topics. Peter delivers lectures at major economic and investment conferences, and is quoted often in the print media, including the Wall Street Journal, New York Times, L.A. Times, Barron’s, BusinessWeek, Time and Fortune. His broadcast credits include regular guest appearances on CNBC, Fox Business, CNN, MSNBC, and Fox News Channel, as well as hosting a weekly radio show. As an author, he has written four best-selling books, including his latest: " Crash Proof 2.0: How to Profit from the Economic Collapse" and "How an Economy Grows and Why It Crashes."
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