I am a big fan of Peter Schiff and I been following him since 2009. I listen to his daily radio show, Schiff Radio, and will use this page to include his position on various issues I have heard him say for the benefit those who may be looking for it.
Gold vs Paper Money – May 17th 2011 [66:43-67:33]
“When I hear people constantly try to talk saying, ‘hey Peter, why do you like silver or gold, it just sits there, it doesn’t do anything, its not like stocks or bonds’. Silver or gold, they’re not like stocks or bonds, they’re not like investments, they are like money. When people tell me, why do you like gold so much, it doesn’t do anything. Why do you like paper so much, what does a stack of $100 bills do. It just sits there and depreciates. The difference between having a stack of gold coins and having a stack of paper money is, you have no idea if you’ll every be able to buy anything with that paper money, because they can print it in endless quantities. But they are not mining alot of gold, which means if I have a stack of gold, I know I’ll be able to buy stocks, I’ll be able to buy real estate, I’ll be able to buy consumer goods. That’s how you evaluate gold. You don’t compare it to investments, you compare it to paper money and hands down it wins.”
Income vs Dividends – May 20th 2011 [51:17-53:21]
“You should have both. Alot of people that don’t have dividends now, doesn’t mean that you want to buy stocks that don’t pay them, because you could still use those dividends and reinvest them and buy more stocks. And part of Wall Street’s ‘conventional wisdom’ is that when you are young, you buy stocks for growth and it doesn’t matter if it pays any dividends and then when you want to retire, then you sell those growth stocks and you buy bonds or something that pay interest. Well the problem is what if, when you want to sell your stocks, the market goes down. Or what if when you want to sell your stocks, interest rates are really low, like they are now. Well your SOL. In fact, alot of people who are planning on retiring in 2000, based on where they thought the stock market would be today, they had to cancel their retirement plan, because (A) the stock market hasn’t kept going up and (B) if you sell your stocks and buy bond, you don’t get any yield. My strategy is different. I tell people, buy stocks that pay dividends right now, even though you don’t need them, and as the dividends come in, use them to buy more shares, either in the same companies or to diversify into other companies, and then watch the amount of dividends that you are earning. And when all of a sudden your dividends are high enough, that you don’t have to work any more, then you quit your job and retire. So your buying assets today, that can finance your retirement and when you accumulate enough of them, then you can retire. And it doesn’t matter what the market is, because your not selling, it doesn’t matter where interest rates are, because you already own the assets that can fund your retirement. So I think that makes alot more cense than just participating in a ponzi scheme and hoping that there is a fool, willing to buy you out of your stock portfolio when it comes time for you to retire, and that interest rates are high enough that you can invest in something that is gonna give you a return.”
Gold & Foreign Currencies in a Portfolio – May 20th 2011 [59:02-60:20]
“I look at precious metals, gold in particular, as an alternative to dollars, or euros, or yen, or any currencies, and I think you need to hold atleast 5 to 10 percent, is my recommendation, in physical gold and silver as savings/liquidity. Obviously, you have to be willing to accept the volatility in exchange for the fact that you own something real and not just a piece of paper. But when it comes to just foreign currencies, that’s a little bit different, that’s also liquidity, there is a little less volatility, but I think that most of your foreign currencies should not be held in cash, but should be invested in things like bonds and more preferably dividend paying stocks. So, I don’t think you should have alot of cash lying around, but if you want to hold 5 or 10 percent of a portfolio in foreign currencies, that’s fine too, it gives you some liquidity and you have less volatility, and all that depends on where you are in life and what your investment objective are. Somebody with not alot of risk tolerance, if someone has a shorter time horizon, for example, they might want to have alot more of their holdings in cash than in stocks or bonds, and they could diversify that among various currencies.”
Perth Mint – May 19th 2011 – [44:19-47:03]
“We sell at Euro Pacific Capital the Perth Mint certificate program and there has always been criticism out there in the blogosphere, that oh its a scam. That the Perth Mint don’t really have the gold or silver. I think that criticism is wrong, I’ve had absolutely no problems. I have no reservations that the gold and silver is in fact in Perth. I have gold, silver and platinum there myself and I have been selling it to clients now. I think we are closing in on a billion dollars in metals that are being stored for Euro Pacific Capital clients over there in Australia.” – the discussion goes on about a client who wanted to sell there certificates after buying it from a Panamanian Perth dealer that went out of business, which Euro Pac had to refuse to accommodate the order because of anti-money laundering.
State of the US Economy – August 2nd 2011 [22:51-23:33]
“The reality is that we are actually in a depression and until the government stops spending and deregulates, we are never gonna have a recovery. So I know that a year from now [the reported] unemployment could be 10-11% and we’d be back in recession, as these numbers would be off the charts. So what are they [government] going to do? More spending and that is going to weaken the economy even further. It’s never going to end until we have a crisis, which I think is guaranteed. I think sometime in the next year or two probably, there will be a bond crisis, a currency crisis (as the dollar implodes), interest rates skyrocket, and then we are forced to either default on the debt or make massive cuts in entitlements and national defense.”
For those who may prefer not to listen to as much politics as Peter normally discusses on the daily episodes, you may enjoy the a full day of callers questions and answers that happen on Friday episodes.