The gold bull vs. the paper tiger

Summary: If all you look at are the headlines, it can be easy to ascertain that the gold bull market is over. Peter Schiff of Euro-Pacific Capital explains how the irrational exuberance of 2006-07 has returned, and is dominating current sentiment in the equity markets. Schiff maintains that the fundamentals of the economy are very weak, with consumption and services being the only growing part of the U.S. economy. Schiff goes on to explain how the ongoing currency war is leading many to believe the dollar is the only safe-haven. He then points out how gold/silver are the only ways to protect yourself from getting scraped in the battle. Lastly, Schiff explains that the sell off in April has been due to institutional investors. Gold’s record physical demand is yet another sign that precious metals are very strong. He cautions investors taking the long-term view that they’ll have to endure corrections like we’ve seen, but that in the end, it’s way better than being caught holding an asset that’s way overvalued. Read more…