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Peter Schiff Shared: Anyone who thinks inflation has peaked doesn’t understand inflation. Inflation doesn’t peak with negative real interest rates. At an actual peak real interest rates are very high as investors expect inflation to get much worse. Inflation peaked in 1980 at 13% with 7% real rates!
Community Response: Lol, gold now is slightly cheaper in inflation-adjusted dollars than gold in 1980. Yes, because in 1980 when inflation peaked gold was way overpriced, as investors expected inflation to get much worse. So, they ended up overpaying for gold. I’m sure gold will be way overpriced the next time inflation peaks as well.
Oh, so we are on the same page. Gold is overpriced now and will be way overpriced by the time inflation peaks… No gold is way under-priced now, as inflation is a long way from reaching its peak.
according to what metric? Gold miners can sell gold at 2x what they produced it for. Gold is mostly an investment tool, & with falling industrial demand, gold’s main use case is looking pretty. Gold is under-priced just like a home phone line is.
Why isn’t gold moving Peter? Because investors think Fed rate hikes will be bearish for gold.
So, are we buying gold and/or silver now? I do not understand what we are supposed to do? ETFs? Stay in cash? Please help.
To protect wealth: go 80% Gold, 10% BTC, 10% ETH.
Gold is barely beating inflation, why would I invest in that? Zoom out 20 years
I did zoom out 20 years and I still think BTC is better than gold and has better “properties” as well.
You don’t understand the risk you’re taking on, among other things. Tulips returned really well too once upon a time. Although I would allocate 10% if you can read, but no more. If you’re fighting inflation in a poor country, you can’t take on that type of risk.
It also seems like you don’t understand how Ethereum is actually crap because it turned to proof of stake making it a highly centralized coin. Dude literally do your research please.
According to your logic (price action only, because you can’t comprehend things like risk or portfolio management), ETH down 20%. BTC down 30%. You lose.
Ignoring food scarcity caused by climate change and blaming inflation are the ways of Money Men.
Everything has to be exactly the same as it was before. There are certainly no differences between 1980 and now. None at all. Oh wait. The projected population declines in developed economies?
Serious question, why is what you said relevant? Bitcoin will outpace gold’s market cap so fast. Peter, I’m sure all 3 of your pet rock investors have caught on by now.
Aren’t we in a service economy inflation trap? Can’t outsource “Do you want fries with that”, automation could reduce cost but, then we will have 30-40% unemployment! We’re screwed.
I would think that there is no real ceiling to inflation mathematically speaking. It will be just a point where most of the country cannot afford most things.
Bitcoin & Schiff Prediction: $100K BTC – Schiff, “It’s worthless, going to zero.” $500K BTC – Schiff, “Cathie Wood is delusional, bitcoin will create massive losses.” $1Mil BTC – Schiff, “Michael Saylor is insane, he should sell now before it’s too late.”
Inflation is clearly just started but what is pressing is economic collapse. It is inevitable unless our growth rate spikes then set new monetary standards with deflationary methods (not in the feds playbook) during surplus-or adjust to inflation which historically triggers depression.
Not saying it’s peaked, but total debt is radically higher now than in 1980 as you know. It will take far less “tight” conditions to shunt inflation, but you’ll get huge real economy damage at the same time.
Rates at 3%, for example, would likely cause problems, but real rates would still be quite negative, so It doesn’t seem like it would deal with inflation (wouldn’t encourage people to save instead of borrow and spend). What do you think?
Exactly. Thank you, Peter. I love it when an expert who puts in the intellectual work to fully understand a subject can bring us to a higher level of understanding and make all of us less ignorant. This is why I invested in your EPC funds in April of 20!
