"HUGE NEWS! The Next Leg of Silver's Explosive Breakout Will Shatter All Records" - Peter Schiff
Summary
TLDREconomic commentator Peter Schiff discusses the recent surge in gold and silver prices, emphasizing the potential of silver as an investment. Despite a downturn, Schiff maintains optimism, particularly for silver, which has shown resilience above $30. He attributes the differing trajectories of gold and silver prices to central banks' buying behavior, highlighting that while central banks hold significant amounts of gold, they do not buy silver, making its market more volatile. Schiff advises investors to capitalize on the current pullback as an opportunity to buy both metals, especially silver, as he believes the real bull market for these precious metals is just beginning.
Takeaways
- 📉 Silver has been lagging behind gold but is now showing signs of catching up, with the speaker recommending his audience to buy silver before it jumps ahead.
- 📈 Gold has recently seen a significant drop from its high of $2450 to $2377, with support levels moving from $2200 to possibly $2300, indicating a potential buying opportunity.
- 💰 Silver surged to almost $32.50, its highest since 2013, before retreating, showing resilience above $30 and strong buyer interest, suggesting potential for further gains.
- 🏦 Central banks have been major purchasers of gold, holding over 35,700 metric tons, which has played a crucial role in stabilizing gold prices, unlike silver which is driven more by public and investor demand.
- 🔍 The difference in buying behavior between gold and silver is significant, with central banks not buying silver, leading to more volatile price movements compared to gold.
- 📊 Silver's relative strength index (RSI) indicates strong buyer interest, suggesting potential for further gains, a point highlighted by economic commentator Peter Schiff.
- 💡 Peter Schiff has long advocated for silver, describing it as a 'coiled spring ready to explode,' and sees the recent breakout in silver prices as a strong buying opportunity.
- 📉 There has been a two-day correction in the price of silver and gold following a breakout and move to new highs, which the speaker sees as an opportunity to buy both metals, particularly silver.
- 💼 Inflation in the US in 2022 has remained above the Federal Reserve's 2% target, with economists linking the price spike to global factors such as supply chain disruptions and geopolitical tensions.
- 💼 Peter Schiff offers a distinct perspective on inflation, asserting that it stems from the government's money supply expansion rather than genuine economic growth.
- 💰 Schiff recommends investing in precious metals like gold and silver to safeguard against inflation and currency devaluation, advising investors to capitalize on buying opportunities.
Q & A
Why has silver been lagging behind gold in terms of price increase?
-Silver has been lagging behind gold because central banks, which are major purchasers of gold, have not been buying silver. The silver market is driven more by public and investor demand, leading to more volatile price movements compared to gold.
What was the highest price of gold mentioned in the script, and what was the support level for gold?
-The highest price of gold mentioned was $2,450. The support level for gold was initially $2,200 but is now estimated to be around $2,300, possibly a little higher.
What was the highest price of silver reached in the script, and how does it compare to historical prices?
-The highest price of silver reached was $32.50, which is the highest it has been since 2013. Prior to the surge, silver had not traded above $30 since 2013.
What is the significance of the relative strength index (RSI) for silver mentioned in the script?
-The RSI for silver indicates strong buyer interest, suggesting potential for further gains in silver's price.
Why does Peter Schiff recommend investing in precious metals like gold and silver?
-Peter Schiff recommends investing in precious metals to safeguard against inflation and currency devaluation. He believes that the rally in gold and silver prices is the beginning of a larger trend.
What is the role of central banks in stabilizing gold prices according to the script?
-Central banks have been major purchasers of gold, holding over 35,700 metric tons, which is about 1/5 of all the gold ever mined. This accumulation has played a crucial role in stabilizing gold prices by offsetting retail selling pressures, such as outflows from gold ETFs.
How does Peter Schiff interpret the recent breakout in silver prices?
-Peter Schiff interprets the recent breakout in silver prices as a strong buying opportunity, indicating that silver is poised for significant gains.
What does Peter Schiff suggest is the underlying cause of inflation?
-Peter Schiff suggests that the underlying cause of inflation is the government's expansion of the money supply, not genuine economic growth or productivity improvements.
What advice does Peter Schiff give regarding buying gold and silver?
-Peter Schiff advises investors to capitalize on buying opportunities for gold and silver, suggesting that any pullback in price is an opportunity to buy, as he believes the big movement into these precious metals is underway.
What is the current market sentiment regarding the Federal Reserve's rate cut according to the script?
-The current market sentiment has traders now expecting the first Fed rate cut in September instead of June, reflecting the Fed's cautious approach.
How does the script suggest traders should approach the silver market?
-The script suggests that traders should closely monitor upcoming economic indicators and Fed statements for additional insights into the timing of any policy changes and consider silver as a safe asset due to its market dynamics.
Outlines
📈 Silver and Gold Market Analysis
This paragraph discusses the recent market trends of silver and gold, highlighting silver's potential to lead over gold after lagging behind. The speaker emphasizes the opportunity to buy silver, especially after it surged to its highest since 2013, reaching almost $32.50. Gold's price is noted to be around $70 off its peak, with support levels moving higher. The speaker also touches on the differing buying behaviors of central banks, which heavily influence gold prices through their purchases, while silver is more driven by public and investor demand. This difference contributes to silver's more volatile price movements. Economic commentator Peter Schiff is mentioned for his long-standing advocacy for silver and his interpretation of its recent price breakout as a strong buying opportunity.
💡 Investment Opportunities Amidst Market Corrections
The speaker focuses on the two-day correction in the prices of silver and gold following their recent breakout and new highs. Silver, which had reached as high as $32.50, experienced a substantial pullback to around $30.73. The speaker suggests that $30 might now serve as support for silver, similar to how $2,000 became support for gold after it was breached. The speaker reiterates the opportunity to buy both metals, particularly silver, following the correction. The paragraph also discusses the surge in US inflation in 2022, which coincided with the nation's post-pandemic recovery, and the various factors contributing to this inflation. Peter Schiff offers a perspective that inflation is caused by the government's money supply expansion rather than genuine economic growth, and recommends investing in precious metals to safeguard against inflation and currency devaluation.
🌐 Economic Growth, Inflation, and the Role of Productivity
This paragraph delves into the relationship between economic growth, inflation, and productivity. The speaker challenges the notion that economic growth inherently leads to rising prices, arguing instead that inflation stems from the government's expansion of the money supply. Productivity improvements can help mitigate price increases but do not address the root cause of inflation. The speaker asserts that the government uses productivity gains to mask the inflation they create, thereby robbing the public of potential price reductions. The recent rally in gold and silver prices is viewed as the beginning of a larger trend, with the speaker advising investors to capitalize on buying opportunities during pullbacks. The paragraph concludes with a reminder of the ongoing geopolitical and financial uncertainties that support the long-term outlook for silver, and the expectation of the first Fed rate cut in September.
Mindmap
Keywords
💡Silver
💡Gold
💡Precious Metals
💡Price Support
💡Relative Strength Index (RSI)
💡Central Banks
💡Gold ETFs
💡Inflation
💡Economic Growth
💡Money Supply
💡Federal Reserve
Highlights
Silver could potentially lead gold as it has been lagging behind and is suggested as a good investment before it jumps ahead.
Gold is currently trading around $2377, with support levels moving higher from 2200 to approximately 2300.
Opportunity identified to buy both metals, with a particular emphasis on silver.
Gold dropped over 4% from its recent peak, while silver retreated from an 11-year high.
Silver's RSI indicates strong buyer interest, suggesting potential for further gains.
Central banks have been major purchasers of gold, holding over 35,700 metric tons.
Gold ETFs have experienced 11 consecutive months of outflows, indicating selling by US and European investors.
Central banks do not buy silver, making its market dynamics more driven by public and investor demand.
Peter Schiff has long advocated for silver, describing it as a coiled spring ready to explode in value.
Schiff interprets the recent breakout in silver prices as a strong buying opportunity.
US inflation in 2022 saw multi-decade highs, remaining above the Federal Reserve's 2% target.
Economists link the price spike to global factors such as supply chain disruptions and geopolitical tensions.
Peter Schiff asserts that inflation stems from the government's money supply expansion.
Schiff recommends investing in precious metals like gold and silver to safeguard against inflation.
Market sentiment has shifted with traders now expecting the first Fed rate cut in September instead of June.
Central banks holding more gold than silver contributes to silver being perceived as a safe asset.
Transcripts
silver could lead gold and so it's been
lagging and so I wanted my audience to
buy it before it it jumped ahead gold is
now about $70 off the high of 2450 it's
at
2377 I think the support in gold is
moving higher so it was 2200 now it's
probably 2300 maybe even a little better
so I don't I don't think you're going to
get much bigger pullbacks than what
we've just seen in the last couple days
but I wanted to reiterate that this is
an opportunity to buy both Metals but in
particular silver this week precious
metals faced a downturn with gold
dropping over 4% from its recent Peak
and silver retreating from an 11-year
High silver surged Rising almost $2
daily to $31 its highest since 2013 and
spiking to
$32.50 by Sunday night gold also saw
gains hitting a record high above
$2,454 on Sunday and Monday settling at
2,438 .50 per ounce by Monday's close
silver settled at $ 32.4 to6 per ounce
its highest since January
2013 despite the dip analysts maintain
optimism particularly for silver which
has shown resilience above $30 Silver's
relative strength index RSI indicates
strong buyer interest suggesting
potential for further gains economic
commentator Peter Schiff highlights a
significant factor contributing to the
differing trajectories of gold and
silver prices the buying behavior of
central banks central banks have been
major purchasers of gold collectively
holding over
35,7 metric tons constituting about 1/5
of all the gold ever mined this
substantial accumulation of gold by
central banks has played a crucial role
in stabilizing gold prices particularly
by offsetting retail selling pressures
notably gold exchange traded funds ETFs
have experienced 11 consecutive months
of outflows indicating that investors in
the US and Europe have been selling off
their gold Holdings even as the price of
gold has risen the consistent purchasing
by central banks has effectively
counterbalanced this retail selling
maintaining strong demand for gold and
supporting its price in contrast central
banks do not buy silver which means the
silver market dynamics are driven more
by public and investor demand this
difference is crucial in understanding
why Silver's price movements can be more
volatile compared to Gold shiff has long
advocated for silver forecasting it
would eventually surge in value and
describing it as a coiled spring ready
to explode he interprets the recent
breakout in silver prices as a strong
buying opportunity indicating that
silver is poised for significant gains
we will present clips from Peter
schiff's interview but before we do if
you want more videos like this please
hit the Subscribe button and turn on the
notification Bell for more updates thank
you and enjoy the video silver and gold
had a big move up particularly silver
silver really broke out it was up almost
$2 I think on the day and it didn't just
close above 30 which was a level that
silver had not traded
above uh since
2013 but we got we closed above 31 on
that day and in fact on Sunday night we
spiked again and we got as high as
$32.50 in the price of silver gold which
did not set a record high on that Friday
set a new record high on Sunday night
and then another new record high on
Monday I've been telling people that
they should buy more silver than gold
because gold kept going up and silver
wasn't and I guess that the reason for
that was that central banks were the
primary buyers of gold and that they
weren't buying silver and since the
general public has been selling in fact
we've had 11 consecutive monthly
outflows out of gold ETF FS indicating
that investors in the US also in Europe
have been selling even though the price
has been rising so somebody must be
buying enough gold to offset all this
retail investor selling and a lot of
that is central banks and they don't buy
silver they don't have room for silver
they're buying gold and so I thought
that silver was kind of getting left out
but that eventually like a coiled spring
it would explode and I kept saying buy
silver buy silver it's got to go up
there's no way Gold's going to keep
rising and it's going to leave silver
behind in fact I know that in a real
bull market which I believe we're in
silver could lead gold and so it's been
lagging and so I wanted my audience to
buy it before it it jumped ahead well
now it had that breakout and so I did
that special video on Thursday to alert
people to this breakout to get them to
go and buy some silver on that breakout
well the reason I'm doing this video
today is we've had a nice two-day
correction in price following that
breakout and move to New highs most of
the decline was today although we had
some of the decline yesterday so I
mentioned that silver got all the way up
to
$32.50 which is still low it's not like
that's a high price it's just the
highest it's been since 203 13 but as
I'm recording this uh podcast on
Wednesday night silver is back down at
$373 so that's a pretty substantial
pullback about a dollar what 80 or so
from the 3250 that it traded at mon for
on
Monday and if 30 is now the support
which I think it is now that doesn't
mean it can't silver can't go below 30
but I think 30 is to Silver what 2,000
was to Gold once we broke above 2,000
2,000 became support and yes every once
in a while we dipped below 2,000 but we
never stayed below it for long and it
quickly came back so I don't know if
silver is going to go back below 30,000
I mean 30 it might go below 30 but I
don't think it'll stay below 30 for very
long and at
$306 that's close enough to 30 not to
worry about it
I would buy it on gold gold is now about
$70 off the high of 2450 it's a
2377 I think the support in gold is
moving higher so it was 2200 now it's
probably 2300 maybe even a little better
so I don't I don't think you're going to
get much bigger pullbacks than what
we've just seen in the last couple days
but I wanted to reiterate that this is
an opportunity to buy both Metals but in
particular silver the surge in US
inflation in 2022 coinciding with the
nation's postco recovery saw
multi-decade highs inflation remained
above the Federal Reserve 2% Target
despite a subsequent decline economists
link the price spike to Global factors
like pandemic induced supply chain
disruptions and geopolitical tensions
such as rising oil prices though part of
this trend US inflation has existed
hibited resilience persisting at
elevated levels some economists credit
the robust US Labor Market suggesting
strong labor demand has boosted wages
and consumer spending others attribute
persistent inflation to aggressive
fiscal stimulus from both the Biden and
Trump
administrations Peter Schiff offers a
distinct perspective on inflation
asserting that genuine economic growth
doesn't inherently lead to Rising prices
instead he contends that inflation stems
from the government's money supply
expansion while productivity
improvements may help mitigate price
increases they fail to address the
underlying cause of inflation in
response to these insights shiff
recommends investing in precious metals
like gold and silver to safeguard
against inflation and currency
devaluation he interprets the recent
rally in gold and silver prices as the
beginning of a larger Trend advising
investors to capitalize on buying
opportunities we have inflation because
we're doing so well right because we
have such a good economy you know we got
to put up with this pesky inflation you
know not only doesn't economic growth
cause inflation it actually helps hide
the inflation caused by the government
because when an economy is truly growing
and producing more stuff prices go down
now the government can take advantage of
that by creating inflation that prevents
prices from going down maybe they stay
the same or they go up a little bit the
public doesn't realize how they've been
robbed because how do you know how much
PL prices would have fallen if the
government didn't create inflation you
don't there's no way of knowing so the
government is able to take away a
benefit that you never realize that you
were about to receive so you don't know
what you lost because you never had it
in the first place so the government
takes advantage of that they know hey we
have capitalism that is lowering prices
let's Rob the public of these price cuts
by creating inflation and they won't
even know that there is any inflation
because you know we've defined it as
prices going up now prices are going up
2% or more because if it's just 2% well
it's no big deal because that's our
Target we want 2% inflation but if
prices were supposed to fall by 5% the
government gets away with 7% inflation
and they claim everything is great so
productivity can hide inflation but it
never creates inflation but that's what
the FED said in these minutes they're
thinking oh maybe the economy can grow
faster without causing inflation no
there is no speed true economic growth
can can be as fast as it wants to be and
you're never going to have to worry
about Rising prices they say the economy
is really good and they were worried
about oh well you know uh we might get
inflation maybe we won't right it's a
it's they're saying maybe we don't have
to worry even though we have this great
economy we don't have to worry about
this great economy causing
inflation uh because of the productivity
enhancements that are going to um
diminish that inflation
but those productivity enhancements
don't diminish the inflation they just
diminish the price increase inrees the
inflation is the expansion of the money
supply and the government's going to
keep expanding the money supply because
they got no choice I mean they have a
choice they just have no politically
viable choice so they're going to keep
on creating inflation and that means
they're going to keep on robbing from
the public any benefits that might
otherwise have come their way through
increases in productivity and that is
the economic reality that's why this
gold and silver rally is just getting
started and you want to buy any
opportunity any pullback and I again I
think they're going to be short and
shallow because the real money the big
movement into gold and silver is
underway despite a recent mild pullback
ongoing geopolitical and financial
uncertainties support the long-term
outlook for silver market sentiment has
shifted with Traders now expecting the
First Fed rate cut in September instead
of June reflecting the fed's cautious
approach Traders should closely monitor
upcoming economic indicators and fed
statements for additional insights into
the timing of any policy changes
Additionally the fact that central banks
hold more gold than silver contributes
to Silver being perceived as a safe
asset share your thoughts on Peter's
prediction in the comment section below
also ensure you like this video
subscribe to the channel and turn on
post notifications for more videos like
this until next time time
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