Gold Price Falling — as Explained by Peter Schiff and Some Other Dude

In the video below, Peter Schiff explains why the price of gold and other precious metals have been going down, perhaps even in its lowest for a long while now with spot price fluctuating between at around less than 1600 dollars per ounce. In contrast, to give a different perspective, I also showed some guy being interviewed in Kitco News (a show managed by one of the most known gold trading and analysis company) who has a different sentiment as Peter Schiff. So you be the judge. Economics is a soft science after all and those who believe that they can manage the complexity of how organic it is are suffering from the pretense of knowledge as Hayek popularized.

I like the bit where he mentioned that many of those who were buying gold when it was rising never really understood the reason behind it in the first place and that's why now (arbitrary manipulation of money supply and lower interest rates that lead to debased currency and inflation). I've been talking about this over and over in my blog.

 He even mentions that the Fed's minutes of the meetings are irrelevant since they've been so useless when it comes to anticipating economic crashes being that the same kind of sentiments were recorded in the Fed meetings right before what would have been the second biggest economic crisis since The Great Depression.

And the guy above insists that Euro, even if it collapses, he says, is now irrelevant. It's quite ridiculous, in my opinion. It's almost like he's saying that we just ignore everything and pretend all of these problems are not being caused by faulty monetary policy or at least power that gives arbitrary discretion to the central bankers to monopolistically plan the economy.

And he's mostly thinking in trading profits in the short term, I am guessing. Or even in investments in general and not looking at the moral and philosophical aspect of the mandate given to the Federal Reserve. And what the hell is he talking about when he mentions that only the US is not lowering the power of their currency while the whole world is? They've been pumping up their economy with steroids like crazy while many countries in the world like those members of the BRICS summit (Brazil, Russia, India, China, South Africa) have been talking about replacing the dollar as the world reserve (see The World is Losing Faith in the Dollar).

Even the Philippines would be considered totally conservative when it comes to monetary policy as compared to the US. So what is he talking about?

Again, you be the judge. I am just putting two different perspectives out there as more and more people seem to think that gold is a speculative bubble because of lowering prices but we need to really discerning on where we get our information from. Recently I wrote about an article in Yahoo News saying that the demand for gold has drastically decreased (see My Two Cents on Yahoo News Report About Gold).

In other sources like Forbes:

Both countries, of course, members of the BRICS summit as I have mentioned whose economies are way more stable than the US or the Eurozone, obviously.

Anyway, again, you be the judge. I'm just throwing those data points and reports out there. You can also research for yourself. But please be reminded that the media marginalizes the Austrian School of Economics and glorifies Keynesian mainstream economics. Can't really blame them, I guess, being that many of them have been indoctrinated to believe in having the power and capability to manage something so complex and organic.


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