Gold Price Will Surge to New All-Time Highs When Inflation Panic Sets In: Peter Schiff

Peter Schiff believes that gold prices are set to skyrocket to unprecedented levels as inflation panic spreads throughout the financial world. Peter emphasizes that the Fed has lost the battle with inflation, and we are only at the beginning of an inflationary cycle, which has historically been very bullish for the price of gold.

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00:00 Introduction
00:50 Year-in-Review of Gold in 2023
02:41 Gold Hitting All-Time Highs
07:16 Is the Gold Market Manipulated?
14:01 Inflation is Going to Get Worse
17:50 Dow Jones Priced in Gold
21:42 People Want the Government to Save Them
31:20 How Gold Could Return to the Monetary System
35:11 Peter’s Investment Strategy

#gold #goldprice #inflation

Hello and welcome to commodity culture where our goal is to make you a better investor in the commodity space my name is Jesse day before we dive in standard disclaimer nothing here is investment advice do your own due diligence and today’s episode is brought to you by moneymetals.com the most trusted online

Bullan dealer and depository in the United States use money medals for purchasing selling or storing physical gold and silver hit the link in the description below to learn more and use coupon on code Jesse day to get a $10 discount on your first purchase and today’s guest is the chief Economist and

Global strategist at europacific asset management and the host of The Peter Schiff Show we’re going to be talking about gold and his thoughts on the economy Peter Schiff great to have you on the show well thanks Jesse for having me on well I want to start with a year

In review of the gold space over the course of 2023 what went the way you thought it would what surprised you if anything and how will the events that transpired in the gold markets shape the way that you look at them as we move into 2024 well

You know I’ve been very bullish on gold for many many years and so uh with all the years of gold failing to live up to its potential nothing really uh surprises me anymore with gold um I I did expect the price of gold to move higher and it has moved higher I just

Would have expected it to move even higher than it did and you know the gold price keeps disappointing to the upside so I mean directionally yes gold has been going up I mean gold is230 $240 an ounce not too far off an all-time record high that we set about a

Month ago I think we got to 2,135 so Gold’s been going up and when I first started speaking publicly about gold on National Television the first time I went on CNBC um you know goal was uh you know 400 and change so yeah I mean it’s gone

Up but I you know I would have thought it would have been higher and I I I still think I’m going to be proven right on uh you know how much goal goes up it’s just taking a lot longer to get there but I think at some point we’re

Going to make up for a lot of lost ground I think we’re GNA see a year where the price of gold moves up you know several fold you know whether that’s going to be 2024 or 2025 or 2026 you know nobody knows but I I think it’s coming well you mentioned their

Gold hitting all-time highs that excited a lot of people particularly gold bugs um a lot of analysts thought that once gold reached all-time highs it would then be Off to the Races from there the price as you mentioned is traced back down to around the 2,000 level um where

It sit right now however gold does remain very strong when you consider positive real interest rates um do you think there’s a fundamental misunderstanding out there about how gold is supposed to perform in our current economic environment well there’s a lot of fundamental misunderstandings about gold but yeah

When gold hit that new record high rather than just continuing to rise we had a sharp drop I mean gold got to uh 2135 and the next day it was back below 2000 or two days later I think it got down to 19 maybe 75 so it had $150 $160 pullback almost

Immediately uh but it quickly recovered it didn’t you know go too far below 2,000 and it didn’t stay there that long so you know I think that this is now the new support for gold just around $2,000 an ounce and and you know that used to be the record high so the fact

That we’ve now are building support near what used to be massive resistance is a very bullish technical uh factor and the fact that gold has held up this well in the face of some big headwinds and these are headwinds that really shouldn’t be there but it’s about perception and the perception was that

Rate hikes were going to be very bearish uh for gold that Rising real interest rates to the extent that they they were real but the markets believe that that should have been barass for gold uh but we’ve now basically finished the tightening cycle and gold is still at

2,000 so if gold did this well in an environment of rising rates imagine how much better it’s going to do when rates are falling and the the real environment that I think gold is going to flourish in is when inflation is accelerating but the FED is not matching that with rate

Hikes um and and that’s going to be a big wakeup call for investors because I think what was you know kind of keeping a lid on gold was the belief that the the the government the Fed was going to be vigilant and do whatever it takes to

Put that inflation Genie back in the bottle and bring the rate back down to 2% and and keep it there and that’s just a fantasy that’s not going to happen and the markets haven’t come to terms with that and so in the past or you know recent year or

So when worse than expected inflation news would come out that would be bad for gold even though it’s good for gold because Gold’s an inflation hedge and so if inflation is a bigger problem there should be more demand for a hedge but the way the markets reacted to the

Stronger than expected inflation data was just the the belief that okay this means the fed’s going to have to fight harder to to get rid of the inflation that just means higher for longer and and that would hurt gold and it would it would help the dollar but I think as

Investors start to realize that higher inflation numbers don’t mean the FED has to height fight harder to win it means the FED is already lost and inflation has won because there’s a limit to how hard the FED can fight given how much debt is in the system especially how

Much debt uh the governments have and how much debt the banks are holding and as much as the FED would like to see lower inflation they don’t want to see a financial crisis they don’t want to force the US government to default on its its obligations the FED is very

Political and so when it has to pick its poison it would rather pick inflation uh than you know a financial crisis and you know just a collapse of the banking system and sovereign debt crisis so when the markets realize that that’s where we’re going I think Gold’s going to be

Off to the Races well I want to get your thoughts as well on the potential manipulation of the gold market because as you said the price dropped precipitously after hitting all-time highs this led to a lot of people on Twitter pointing and saying see the gold Market’s manipulated there’s no reason

To be in this space I get those comments a lot on the YouTube channel as well um to what extent obviously we saw JP Morgan Traders get convicted for spoofing the market um to what extent if at all do you think gold is manipulated through paper contracts and do you see

That breaking down if you do believe it is manipulated at the moment well I mean first of all I mean in in 2001 the price of gold gold was under $300 an ounce and in a 10-year period to 2011 it went up to 1,00 so why didn’t the manipulation stop

That I mean h how did gold go up so much if there was you know people manipulating it obviously you know it it had a big move now it should be even higher now but that doesn’t mean it’s because of manipulation that that is that is is uh where it

Is but I I do think that there’s a lot of incentives obviously to keep the price of gold down but there’s a lot of big money that is selling gold I mean they you know when gold hit a new high you know there’s a trading adage I mean

It’s not rocket science Buy Low and sell high and you know people took profits or took an opportunity to short I think there is a lot of hot money that trades gold Futures and um you know when gold couldn’t sustain the breakout I mean it some selling came in but we’re going to

Exhaust this selling I think that part of what’s Happening Here in this bull market is that weaker players are being shaken out of the market they’re being discouraged by some of th some of those sell-offs and that’s kind of what markets do you know it’s they try to get rid of a lot

Of the excess baggage the dead weight the weaker hands uh they give up but I think gold is being accumulated by uh sophisticated investors by by central banks it’s clear that we have a a a monetary crisis looming in in the Fiat world and and so people are are are are

Accumulating gold central banks are accumulating gold and we’ve had you know a few false starts and so when gold makes a new high I think investors are still trained to sell into it because every time it’s made a new high it’s pulled back and the people who sold uh

Made money and they were able to buy back cheaper but it’s going to work until it stops working and and and then I think that once the price of gold you know breaks out let’s say we make the new high let’s say we get up to 2150

Next time and and then they start to sell it and they can’t bring it down very much because new buying comes in and the price makes a new high and you know and the efforts to sell don’t you know produce a much lower price that the buyers coming into the market are just

Taking up all that uh the sales and then at some point you know it’s the sellers that are going to throw in the towel they’re going to stop selling and you know when it comes to the paper markets it’s going to work both ways a lot of people were shorting

Gold that didn’t exist that they didn’t own through the Futures market and so that allowed selling to take place that might not have taken place without the Futures Market because how do you sell what you don’t own uh but Futures markets allow you to sell what you don’t

Own but I think that what ultimately is going to happen with those paper markets is the shorts are going to get caught because I think once the market really has a big bid and it’s hard to buy gold I think a lot of the Longs in the market are going

To look to take physical delivery of their gold and that’s going to be a big problem for the shorts because typically the the contracts settle in cash so the speculators who have shorted Gold by selling f Futures they never actually have to deliver any of the gold

But you know behind every gold Futures Contract there’s an obligation of to deliver actual gold if the buyer wants it but if the buyer doesn’t want it then you don’t have to deliver and and generally the people buying you know don’t need the gold don’t want the gold

They’re just betting on the price I mean there are some uh uh companies that probably need gold and that have hedged and bought it and do take delivery and a lot of the people take delivering have gold because they’re gold producers and they just sold forward some

Production to lock in a price so they’re not speculating but most of the contracts are just traded by speculators who are just betting on the directional movement of gold they don’t have any desire to take physical delivery and they don’t have any physical gold to deliver but as you know the the supplies

Start to be constrained I think some of these buyers of contracts are going to be taking delivery in fact there may be uh investors who want gold who decide to enter the market through the Futures Market I’m going to buy these Futures and then I’m going to take delivery and

So what might really surp surprise the uh the markets is a lot of Longs wanting their gold and then the shorts need to go into the physical market and buy the bars of gold the 100 ounce bars of gold that they need to satisfy their obligation but there you have constraint

There how where are the bars where are you going to get the bars um you know so that could really push the price up so some of the selling in the Futures Market probably slowed down the rise in the price of gold uh for many many years

But eventually it’s going to reverse and the Futures markets I think are going to act to accelerate the rise of the price of gold well I want to touch on a tweet you made recently regarding inflation and you said if you think inflation is bad now wait until you see how much wor

Worse it gets now that the FED has declared victory in the fight plus CNBC declaring the death of inflation is a great contrarian indicator that it’s about to Rise Like a Phoenix from a pile of fake ashes so I’m wondering how persistent do you think inflation is

Going to be moving forward forward how bad could it get what are the implications for both gold and and the global economy and markets yeah well inflation is here to stay I mean it’s it’s just going to get worse um you know the the budget deficits now are enormous

We’re running up approximately a trillion dollars of debt a quarter not a year which was still huge but a quarter so we’re adding about four trillion to the National debt which is now 34 trillion just under uh every year and and so there’s just no way to finance that in the private

Sector plus you have tremendous uh maturities you know I think next year maybe 10 trillion of debt matures and the government needs to have it you know refinanced they got a find buyers and the rates will be much higher so the deficits are going to be rising faster plus you know more and

More people in my generation the baby boom um I’m one of the younger Baby Boomers but uh a lot of the people every year more more baby boomers retire and that means they start drawing Social Security more Medicare and they stop paying the tax revenue uh and it’s just

You know the deficits are going to explode as the baby boomer stops s paying and and and starts collecting so the the only way to match the government’s expenditures and revenue to fill that Gap is by creating inflation uh the politicians simply don’t have the Integrity to level with

The public about uh the the the fiscal situation they’re not going to tell Baby Boomers that they can’t have their social security or their Medicare or their government pensions or all sorts of benefits that have been promised uh in exchange for years of votes uh and

They’re not going to go to the middle class and upper middle class and say look you know we need to double your taxes you know your income taxes have to double and your payroll taxes have to double because that’s how much money we need to make these commitments to your

Parents your grand so it’s just not going to happen um and so it’s just going to be money printing it’s going to be inflation that is the way the bills are going to get paid and so the way Americans are going to pay the bills is watching the value of their savings and

Their wages uh destroyed uh because it’s a tax you know the government’s going to take your purchasing power yes you’re going to get your Social Security you’re going to get your Medicare but it’s not going to buy you very much your social security check is not going to go very

Far when you take it to the supermarket uh and so it inflation has one way to go and that’s up and we’re already experiencing the the beginning of it but this is you know the tip of the iceberg I mean we’re you know what we what we

Just got a taste of it you know people thinking oh we’re just going to go back to 2% a year no we’re not we’re going to go we back much higher we’re more likely to have 20% inflation than 2% yeah on top of what you were saying there’s ideas of universal basic income

Being floated out there which would only exacerbate things further as well um the Dow Jones recently hitting all-time highs you wrote today the Dow Jones hit a record high trading above 37k for the first time but that’s priced in dollars at 18.5 ounces of gold priced in real

Money the Dow is still less than half the price it hit in 1999 the Dow is overvalued I expect the gold price of the Dow to crash and it’s not only the Dow we’re seeing the S&P and the NASDAQ show would appear to be Incredible strength on the surface are all these

Broad indices set for a correction and a crash back down to reality in 2024 in your view well again it’s it’s hard to tell the reason the markets are rallying is the perception that the FED is done hiking so if the FED were to surprise the markets and start hiking rates again

Yeah the markets are going to get clobbered but if the FED follows through with you know what everybody feels is coming and we start to get rate cuts uh then the markets could continue to rise uh you know along with the decline in rates but I think that a decline in

Rates will be accompanied by a big decline in the dollar and that will mean a big rise in gold and so I think that the gold price will rise faster than the Dow and so yeah in in in real terms stock prices will be falling but in in

Uh you know nominal terms in dollar terms they could they can continue to rise but um you know they could drop I mean if there’s uh a perception out there if the inflation threat really gets bad enough and you know it causes the FED to to do something then that’s

Going to be very negative for the markets but to the extent that the FED just tolerates higher inflation and continues to ease in the face of it that’s going to destroy the dollar and then Gold’s just going to go through the roof and in that scenario you could

Actually see a bigger decline in the the gold value of the Dow you know with gold going way up then you would see if gold and the Dow came down I mean if gold and the Dow came down I would expect the ratio to close because I think that the

Dow would come down more than gold uh but if we have massive inflation then I expect both indexes to rise I just think gold will rise a lot more which means that the Dow is falling in terms of gold but I think in an inflationary environment the Dow could be the

Strongest of the major indexes I think that uh you know you you’re you’re going to be worse off in the NASDAQ than you would be in the Dow those industrial type companies or at least those those businesses there’s not that many Industrials left in the Dow Jones

Industrials uh but uh I think it’s a better place to be in an inflationary environment than let’s say the NASDAQ or the S&P but the best place to be is going to be in neither you want to be in foreign stocks you want to be in value

You want to be in inflation Hedges commodity type companies I mean you want to be in the strategy that I’m pursuing personally and the strategy that I’m pursuing for my clients at your Pacific Asset Management I think those strategies will per perform much better than any US based uh Equity uh strategy

And especially the debt strategies I mean if you’re holding on to fixed income because you think hey the fed’s going to cut or the fed’s going to go back to QE and so I’m going to buy these treasuries that are yielding 4% because they’re going to go up in price you know

And the yields going to go down to 2% or something like that you’re in for a root Awakening I think people are just going to be uh you know eviscerated in in fixed income because inflation is just going to kill them well I’d like to touch on your strategy europacific Asset

Management a little bit later but first I want to talk about a poll this poll was conducted in the US of both Democrats and Republicans and the vast majority thought it was a good idea for the government to implement price controls to try and contain inflation now Republicans were less than Democrats

But still in the majority um this shows a stunning La lack of understanding about how the economy Works what hope do the people have when they believe the enemy that caused inflation should also somehow be their savior well it’s not just a a misunderstanding of how the economy works it’s just a

Misunderstanding of inflation and what it is and that is a deliberate campaign by the government by Academia and even Wall Street to confuse the public as to the meaning of inflation so they don’t recognize the source but inflation is the expansion of the money supply that’s literally what

The word means that you know if you think about inflation the root of that is inflate you can’t inflate a price you can raise a price you can lower a price but inflate canotes an expansion prices just don’t expand money supply on the other hand does expand and that’s what

Inflation is referring to the expansion of the money supply you inflate it like a balloon right it gets bigger as it inflates deflation is when the money supply contracts and now the balloon uh uh uh uh contracts right so inflation is like this prices go like this not money

Supply money supply grows and and and and shrinks but in reaction to that right if you inflate the money supply and money has less value you need more monetary units to buy the same goods and services the result of that inflation of the money supply is that prices rise now

What the government has succeeded in in in convincing the public is that the increase in price that’s the inflation and so they’ve separated the consequence of inflation from inflation so now that the public has been dumbed down to not understand what inflation is and they’ve been told that the result of inflation

Is in fact inflation and they think inflation is rising prices well then the solution is obvious just stop the prices from rising pass a law make it illegal to raise prices and voila inflation is is gone but that doesn’t work because if you make it legal to raise prices but you keep creating

Inflation you don’t magically uh you know keep those prices from going up the market is still going to raise those prices so the way prices go up when the government controls them is through the black market so what happens is if the government puts price controls on

Something what happens is you can’t buy it anymore because nobody could legally sell it so let’s say the government uh says all right I don’t know let’s say apples you know are a dollar a piece and the government you know and and the government says okay you know they’ve

Been going up in price and we’re going to have price controls and they’ll say okay you can’t charge more than a150 for an apple that’s the most you can legally charge well if inflation continues and apple should be two or three or four dollars uh an

Apple um then you’re going to go to the supermarket and there just be no apples you know because yeah the price is a $150 but there’s no apples to buy at a $150 so what do you do if you want an apple well you you know around the alley

There’s some guy illegally selling apples on the black market and he’s selling them for three or4 an Apple so you know legally the price is $150 but if you actually want an apple you’re going to pay three or $ four and the problem is when you have to buy stuff

Illegally it’s even more expensive because now the guy selling you the apples he risk going to jail right selling you those apples so he’s got to charge you even more because you know there’s so much risk in what he’s doing uh you know he’s you know he’s a

Criminal uh and so whenever the government puts in price controls it just makes the actual problem worse and you create the shortages because if you don’t want to buy apples on the black market because you don’t want to commit a crime well you’re just not going to

Have any apples and so what good is it that the price of apples isn’t going up if you can’t have any right uh and this happens all the time you know when they put uh price controls on gasoline you know in the 70s where do you think those

Long lines came from that’s your tradeoff yes gas prices aren’t that high but you got to wait in line four hours to get any gas you know what’s your time worth you know I mean would you rather be able to just drive right up to the

Gas station and pay pay let’s say $5 a gallon or do you want to wait in line for four hours uh and pay $2 a gallon or whatever you know I mean what is your time worth because you’re still paying one way right you’re having to give up

Working or Leisure or something you know what generally happens too when there’s a a shortage like that is the wealthier people pay poor people to wait in line for them you know you you you actually have jobs where people are professional line waiters and they’ll stand in line for

Uh somebody who has more money to buy stuff uh you know they have you know other kind of rationing or odd even days but you know we tried price controls in the 1970s and of course they didn’t work and you know one of the ways that companies would get around it you know

They would have price controls on something and then they would come up with a brand new product and introduce it like they they’d come up with a different cut of stake so let’s say there was price controls on a certain cut they would just make up a whole

Brand new cut that wasn’t subject to the controls and now all of a sudden they could price it whatever they wanted because it didn’t exist before but so the markets have to get around one of the ways they got around the wage controls is employers started giving

Their Workers Health Care in as part of their compensation because it didn’t count as a pay raise they just say okay we’re going to keep your pay the same but we’ll throw in health care right because that that’s part of the reason that that that a lot of people have

Healthcare now as part of their employment it really started as a way to get around the uh the wage controls uh but yeah I mean the markets are going to try to find ways around it but you know it’s it’s a Panacea for politicians they’re all around the world politicians

Are trying to punish pharmaceutical companies they’re trying to punish food companies uh utilities everybody that’s raising prices is getting beaten up by the politicians like how dare you raise prices you’re gouging your customers you’re taking advantage of your customers they’re only raising prices in response to the the inflation that those

Very politicians have created right they’re getting mad at the companies for raising prices the people should be mad at the government for causing the inflation for reducing the value of their money that caused cost to go up and force these businesses to raise their prices otherwise they can’t stay

In business because the businesses themselves are suffering from inflation because all their costs have gone up too all their raw material costs have gone up their labor costs have gone up right there you know and so it costs more to produce the goods or provide the services and so if they don’t raise

Their prices they’re going to go out of business and then you’re going to get nothing right so everybody has to raise prices but you know the government loves to blame capitalism for the problems they cause that’s the other benefit of dumbing the public down and getting them

To believe that in inflation is rising prices because then they can blame the inflation on Putin they can blame it on greedy businessmen they don’t have to accept responsibility if the public knew that inflation was the increase in the money supply well you know greedy businessman can’t increase the money

Supply Putin can’t increase our money supply maybe he can increase the supply of rubles but he can’t increase the dollar supply only the US government does that the Federal Reserve and so if the public understood the definition of inflation they would know exactly where it comes from and and but because they

Don’t they’re they’re susceptible to believe in this nonsense like price controls yes and these politicians also have a platform where they can go on television and blame the grocery store owners for inflation the grocery store owner doesn’t have a platform to respond and and inform the public what’s really

Going on so that’s very unfortunate and they’re not happy about raising prices I mean they would rather look they would rather not have to raise prices because their customers prefer lower prices and you know you can sell more stuff if you have lower prices so businesses always

Want to keep their prices down because they can sell more and they can have you know more volume and and make more money but uh when their costs of doing business are going up uh you know they have no choice they have to maintain their margins so they

Can stay in business you talked about Central Bank gold buying earlier I think that’s a pretty um important development in the gold space 2022 is a record year 2023 may be on track to also be a record year of gold accumulation by a lot of central banks across the board um some

People point to the fact of the US freezing uh or Russian FX reserves as one of the reasons countries around the world started to wake up and realize okay maybe the US dollar isn’t as safe as we thought it would be maybe treasuries aren’t as safe as we thought

They would be we need another asset the the more conspiratorial minded point to the fact that well the central banks know there’s some sort of monetary reset that’s going to be coming um you’ve spoken before about gold potentially being reintroduced into the monetary system do you think we’re any closer

Today you know we’re seeing a bit of a trend of of dollarization as well with Nations trading in alternative currencies um are are you seeing us any closer today uh towards potentially having gold be reintroduced in one form or another to either the monetary system international trade or anything like

That yeah look I definitely think that you know every day we get a day closer to Gold being reintroduced as money I mean it’s going to happen it’s inevitable gold has been money for thousands of years and it’s been money for thousands of years for a reason and

That reason is that it works and paper currencies have come and gone uh but gold endures and I think that now with the technology that we have that makes it so much easier to use gold as money uh it it’s you know gold has never been better positioned to serve in that

Capacity than it is right now and I think we are very close to a a crisis in fiat currency it’s a crisis in the US dollar and so how is that crisis going to be resolved you know where are people going to move I think they’re

Going to return to Gold you know they’re people think well they’ll just go to bitcoin and you know I I I think that’s a speculation but I don’t think it’s actually going to happen um but I think people will go to gold now whether gold

Uh will serve as the basis for uh a cryptocurrency either a currency issued by governments or currencies issued uh competing currencies issued by uh private companies uh but at the end of the day we will be reintroducing gold into the monetary system and I think that central banks are going

To be replacing their dollar reserves with gold yes and I think people seem to be so disconnected from the fact that gold is money but when you really think about it it wasn’t that long ago 71 was when you know Nixon removed the gold backing from the dollar that was

Basically yesterday in terms of human history so um I I think people will eventually wake up to the fact that that gold is money and it might be a painful lesson learn unfortunately you know it’s not like in the Stone Age I mean in 1971 we had automobiles we had airplanes

Telephones we had televisions I mean we were a modern society in 1971 yeah I mean we didn’t have uh you know smartphones and the internet and stuff like that but you know we we were you know you know in the Dark Ages you know

It was it was a modern uh way of life and we had gold as money so you know it is not a barbaric Relic you know that was only money you know you know in the in the caveman days it it was it was money throughout most of human

History well Peter it’s been an amazing conversation uh ton of fun talking to you before I do let you go could you tell us about europacific Asset Management what your strategy is there um and and where people can find you yeah and first of all you know while

We’re talking about gold I do have a gold company called shift gold that bears my name I started that company and for people who need to buy some gold and silver I think again we’re near the bottom on gold I think anything around 2,000 I think you’re getting in at the

Low level you know maybe it’s not low based on where you could have bought it a few years ago but based on where it’s going to be a few years from now I think this is a very good entry point and uh silver especially you know silver is

Only about 23 24 $4 uh it’s about half of its high it it was at $50 in fact it was at $50 in 1980 so uh you know it’s less than half of its 1980 price there’s not that many Commodities that you could buy that are

Half of what they were more than 40 years ago uh so silver is very cheap you know you just and and we have physical gold and silver that we’re selling at shift gold uh so you go to the website at shift gold.com give us a call talk to

One of the representatives there and he’ll get they’ll get you in the in the right metal uh as far as your Pacific Asset Management goes I manage portfolios for people now I also manage a family of mutual funds the europacific funds I’ve got a international dividend payer fund an international value fund

An emerging market fund a gold fund and a foreign bond fund all these funds can be bought no load there are investor classes on all the major discount brokerage firm platforms so anybody can just buy my funds and I will be managing uh that for you wherever you have them

Schwab Fidelity wherever you have it on managing those funds if you want to work more closely with me if you prefer to have a separately managed account that owned individual stocks where we pick the stocks and manage the portfolio for you we do that at Europe Pacific Asset

Management we can customize a portfolio specifically for you or you can buy one of our already uh created strategies that’s kind of cookie cutter that we’re managing for everybody but we’re active managers uh we are constantly looking for new ideas and and value and you know we’re not just

Indexers uh we’re not passive we’re using our brains to find underpriced stocks and buy them and sell overpriced stocks not shorting the stocks but if stocks that we bought cheap become expensive well we don’t have to keep them we can take some profits and and redeploy uh the money and so you know

Our strategies I think the the best environment for my strategies is going to be stagflation is going to be slow growth to recession a week US dollar High inflation uh and these are uh economic environments that are normally very negative for your typical asset manager uh very bad for stocks growth stocks

Bonds uh do poorly in the economic environment that I Envision so you know we’re doing okay now I mean we have decent returns year-to date um we’re behind the S&P we crushed the S&P last year we were actually positive when S&P was down this year we’re up quite a bit

But not quite as much uh but if we start to see a big drop in the dollar we start to see a big move up in the price of gold I think we’ll start crushing the S&P again um and uh and so I think this is where people should be I think

Inflation is the big risk uh and it’s it’s going to be a lot higher for a lot longer than people expect and the the portfolios that worked in the 90s and the 2000s and the 2010s they’re not going to work I mean they’re they’re not

Going to do well I don’t think for the balance of this decade and maybe the next decade I think that this is the 197 s again but worse as far as I think the the ultimate outcome so what did well in the 70s gold stocks oil stocks Commodities foreign markets uh they

Boomed while the US market uh went sideways in nominal terms and got crushed in real terms uh but you know the US market was a great place to be in the 50s and 60s you had the nifty50 it was a big boom uh but if you uh expected the 60s to

Continue in the 70s uh you got killed and I think you know the people that are holding on to the this you know bull Market’s equivalent of that nifty50 you know some of these NASDAQ 100 stocks some of these key big stocks that everybody owns uh I think the returns

Are going to be horrible uh you know going forward so you got to you got to get out of what worked during the bubble because it won’t work as the air comes out of the bubble and you get to get into the stocks that nobody wanted to

Own during the bubble you know the base value uh real dividend payers and you know the commodity type investments in particular I think the gold and silver mining stocks uh are are the real hidden gems there in you know where you could see just astronomical gains in these

Stocks I mean you know five 10 times your money but maybe 20 times or more I mean that’s what happened in the 70s I mean those kind of gains uh were there I mean there were stocks that went up 50 times 100 times time some of these small

Junior mining companies so I think there’s that kind of potential uh in in in in this market and we get a real big bull market uh we get you know five 10,000 $20,000 gold and those targets are not out of the question I mean I

Said gold went from um 300 to 1900 in the decade from 01 to 2011 Gold went from $35 an ounce in 1970 to 800 in 1980 I mean think about the magnit of that increase and if you look at the Dow gold price which you mentioned one of my

Tweets that the Dow is roughly 185 ounces of gold um yeah that’s historically High um it’s a little lower than it was in 1966 and 1929 uh but there have been several times where the Dow and gold were close to the same price like the most recent

Was uh 19 uh 1980 uh where the Dow and gold were about 1:1 but even if we got to 5 to one where would the price of gold be well if the Dow is at let’s say 40,000 uh gold has got to be what 8,000 to have a 5 to1 ratio you know

It’s that you know and in order to have a 2:1 ratio if gold if the Dow let’s say the Dow uh was at 40,000 which is not too far away for the for their be a 2:1 ratio between the Dow and gold gold would have to be 20,000 when the Dow is

40,000 now if that happens you don’t make much money in the Dow going from 37,000 to 40,000 but look at what you make in Gold going from 2,000 to 40,000 you you you make you make 20 times your money in Gold but if you make 20 times

Your money in Gold you know you’re G to make you know 200 times your money in gold mining stocks potentially so there’s just some huge huge potential of course yeah there’s risk there’s a lot of downside risk I could be wrong gold stocks could get cut in half they could

Go more right so just depends on uh you know if you’re willing to take the risk but I think that this it’s a huge uh the the the the skew between the upside potential and downside risk if if I’m right about what’s going to happen to Gold you can make so much

More money than if I’m wrong just that you got to be prepared to lose if I’m wrong well I have so many more questions based on everything you said especially about gold and silver miners but we’ll have to leave it here for now Peter I will put a link to europacific Asset

Management in the description below as well as the Peter shift show I recommend people check that out as well and thank you once again Peter for coming on and sharing your knowledge with the audience yeah I was just thinking though I might have got those numbers so if Gold’s said

2,000 it would go to 20,000 that’s 10 yeah that’s 10 times because say it one to one would be 20 times your right 10 times to go from 20 ,000 to 20,000 I don’t know what I was thinking but 10 times in the price of gold would

Translate into you know a much bigger gain in the Mining stock especially if it happened fast right if gold went up there quickly the quicker it goes up obviously uh the the more that impacts the mining companies because it it impacts their earnings faster and it impacts the value of their reserves

Faster absolutely well thank you for that clarification and uh look forward to hopefully chatting again in the new year yeah me too have happy New Year and a Merry Christmas and thank you for joining us today as a reminder this episode is brought to you by moneymetals.com use coupon code Jesse

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