We’re Going to be Hit with a Tsunami of Inflation-Peter Schiff

Posted at 10:31 AM (CST) by & filed under USAWatchdog.com.

By Greg Hunter’s USAWatchdog.com

Dear CIGAs,

Money manager Peter Schiff has a read on gold short sellers.  Schiff says, “Of course the short sellers never had the gold to begin with.  They’re selling gold they don’t have, and I think the shorts are getting a little bit nervous, but they are going to get a lot more nervous as we turn up the heat here.  Gold is now above $1,300 (per ounce).  I think it’s going to be above $1,400 before they start to panic a little bit, and I think that’s great.”  Schiff goes on to say, “I like the fact the market is moving up and nobody is buying it, nobody is paying attention to it.  If they are, they are dismissing it.  People think this is a head fake or a dead cat bounce.  Instead, it’s the resumption of the (gold) bull market.”

On gold mining stocks, Schiff proclaims, “The valuations are phenomenal in the mining sector because everybody assumed that the price of gold was going to keep falling, and those false assumptions were built into these share prices.  So, I think there is a tremendous opportunity for people who want to hit a home run in gold and silver to get into the mining companies. . . . The best performing stock funds so far in 2014 are the gold funds.”

On the effect of Obama Care on the economy, Schiff contends, “The employment base is collapsing; so, the tax base is collapsing.  The budget deficits are going to get bigger than ever.  They just voted to raise the debt limit, but they didn’t actually just raise the limit–they suspended it.  So, in fact, the sky is the limit.  They can pile on as much debt as they want to because right now, there IS no limit to the amount of debt we can have, which means we are going to get a lot more debt.  Everybody thinks this is good news. . . . Why is that good news?  Maybe that’s good news if you are a gold investor, but it’s bad news for everybody else.”