"HUGE NEWS! The Next Leg of Silver's Explosive Breakout Will Shatter All Records" - Peter Schiff

Summary

Economic 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.