"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.

Outlines

00:00

📈 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.

05:02

💡 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.

10:03

🌐 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.

Keywords

💡Silver

Silver is a precious metal known for its value and industrial applications. In the video's context, silver is presented as an investment opportunity that has been lagging behind gold but is expected to surge in value. The script mentions that silver had a significant price increase, reaching its highest point since 2013, and is recommended as a purchase before it potentially jumps ahead of gold.

💡Gold

Gold is another precious metal, often considered a safe-haven investment during times of economic uncertainty. The video discusses gold's price movements, noting that it reached a record high and is being compared with silver as an investment. Gold's price stability, partly due to central bank purchases, is contrasted with the more volatile silver market.

💡Precious Metals

Precious metals refer to rare, naturally occurring metallic elements that have a high economic value. In the video, precious metals, specifically gold and silver, are the focus of investment advice. The script suggests that these metals are opportunities for investors, especially during economic downturns or periods of inflation.

💡Price Support

Price support in financial terms refers to a price level where an asset tends to find buying interest and thus stabilizes or starts to rise. The video mentions that the support for gold is moving higher, suggesting that it is becoming a more attractive buy at certain price levels. For silver, the support level is suggested to be around $30, indicating a potential floor for its price.

💡Relative Strength Index (RSI)

The RSI is a momentum oscillator that measures the speed and change of price movements. It is used to identify overbought or oversold conditions in the trading of an asset. In the script, RSI for silver indicates strong buyer interest, suggesting that there is potential for the price of silver to increase further.

💡Central Banks

Central banks are the controlling entities of a country's monetary policy and are often responsible for issuing currency. The video script highlights that central banks have been major purchasers of gold, which has contributed to stabilizing its price. However, they do not buy silver, which is suggested as a reason for silver's more volatile market dynamics.

💡Gold ETFs

Gold ETFs, or Exchange Traded Funds, are investment funds that are traded on stock exchanges and track the price of gold. The script mentions that gold ETFs have experienced outflows, indicating that investors have been selling their gold holdings despite rising prices, which is a factor affecting the gold market.

💡Inflation

Inflation refers to the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. The video discusses how inflation in the US reached multi-decade highs and how it is linked to various global factors. Peter Schiff, an economic commentator in the video, argues that inflation is caused by the government's expansion of the money supply rather than economic growth.

💡Economic Growth

Economic growth is the increase in the production of goods and services in an economy over a period of time. The video challenges the common belief that economic growth leads to inflation, instead suggesting that true economic growth should result in lower prices. The script uses this concept to critique the government's monetary policy and its impact on inflation.

💡Money Supply

Money supply refers to the total amount of money available in an economy at a particular point in time. In the video, Peter Schiff asserts that inflation stems from the expansion of the money supply by the government. He recommends investing in precious metals like gold and silver as a hedge against inflation and currency devaluation.

💡Federal Reserve

The Federal Reserve, often referred to as the Fed, is the central banking system of the United States. It plays a key role in setting monetary policy, including interest rates, which can influence inflation and economic growth. The video mentions the Fed's target inflation rate and discusses how traders are now expecting the first Fed rate cut, reflecting changes in monetary policy expectations.

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