Saturday, September 24, 2011

Peter Schiff - Gold & Silver Plunge Mirrors 2008, What’s Next?
“Anyone who bought silver on leverage last week probably already has a margin call, so that’s difficult.  But for the cash buyer who is buying to preserve their wealth from inflation, yesterday was a great day.  Days like that are opportunities.  

I know for some people they are thinking, ‘Oh no, my gold has lost value.‘  Your gold is still your gold, your silver is still your silver.  Yes, if you had to sell it today you couldn’t get as many dollars or euros for your gold, but we’re not selling it today so what difference does it make? 

We’re holding it because we’re probably going to need it for tomorrow and so the forced selling is a good opportunity for the people who aren’t forced to sell and still are looking to buy.

I have a feeling that all of this volatility is on the speculative end.  It’s the leveraged players, it’s the hedge funds, the big money that’s gambling.  The physical market is not driven by speculators, it’s real demand by people from all around the world who want to save and who don’t want to do it in currencies where the interest rates are at zero and where the printing presses are running at full speed.

I think physical buyers are going to respond to the drop in price by increasing their purchases.  That’s how the market works, when prices are lower, you want to buy more....

“It’s only the speculators that are looking to buy high and chase momentum.  Then when it goes down they look to bail out.

They (speculators) are not there to be long-term investors and as soon as the momentum goes, they are out the door.  If I liked silver last week at $40 an ounce, I’ve got to like it even more at $30 an ounce.  It’s the same silver, so if I can get it for less money, why wouldn’t I buy it?”

When asked what he is doing with his own money Schiff stated, “I bought some mining shares in my personal account in the last couple of days and even some non-mining shares.  I like to take advantage of lower prices.  You always have to be looking at these declines as buying opportunities.”

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