rising gold price - now is the time

C'mon Nex get up and running now...



Theres no limit to how high gold prices will go

August 9, 2010

We're repeating the same mistakes of the [Alan] Greenspan Fed except on a bigger scale. Obama is repeating Bush's mistakes. Bernanke is repeating Greenspan's mistakes. So their mistakes will do even more damage to our economy than the mistakes of their predecessors.

Schonberger: So how should investors preserve their wealth in this environment?

Schiff: By getting out of U.S. assets entirely, by not owning any dollar-denominated debt. Don't own Treasuries or bonds. Invest in the economies that are doing it right. Invest in emerging markets Southeast Asia, China. Invest in natural resources economies like Australia, Norway, and Canada. I invest in commodities and precious metals. Just get out of dollars.

Schonberger: So youre still buying gold, which is currently trading around $1,200 an ounce. Where do you see gold going from these levels?

Schiff: Theres no limit to how high gold prices will go. They will rise many times from here thousands and thousands of dollars per ounce higher. People will be shocked.

Its surprising to me that gold is still as cheap as it is. I just know its going higher, and eventually its going to go ballistic.

Schonberger: Given your outlook for the U.S. economy, do you think the U.S. stock market is poised to crash?

Schiff: No. I dont think its going to crash in nominal terms the way we think about it because the government has already created inflation. All that money creation will put a floor under nominal stock prices. But I do believe that the Dow Jones will fall down to about one ounce of gold, which is an 80% or so decline from where it is right now. In real terms, U.S. stocks are going to get killed. But in terms of dollars that we create out of thin air, no, Im not looking for Dow 1,000 or Dow 2,000. But I am looking for the equivalent, loss of purchasing power, in terms of an ounce of gold.