Friday, July 20, 2012

Peter Schiff : The Bond Bubble is going to burst

Peter Schiff : The ’80s and ’90s. You had 20 years where gold and silver prices did nothing but go down and stock and bond prices did nothing but go up. If you had your money in gold for those 10 or 20 years, you missed out on enormous gains. It was that track record for the money managers and portfolio managers that started their career in the ’80s, which is when a lot of people came to Wall Street. By the end of the ’90s, with the Dow at 10,000 and the NASDAQ at 5,000, but gold at like $250 and silver at about $4, it basically pounded out any sense of optimism on the metals or why to buy them.
Over the past decade or so, you have seen the flip side of that as you’ve seen stock prices have come down a lot relative to gold. Now you are getting a change where people are more comfortable holding gold because in the rear-view mirror it doesn’t look so bad for gold. Bonds have not come down as much relative to gold, but I think the bond bubble is going to burst and will be falling for years too. And gold will look that much better.

Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as "Doctor Doom" because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the first from within the professional investment field to call the housing market a bubble. Peter has written a book called "Crash Proof" and a follow-on called "The Little Book of Bull Moves in Bear Markets". He is the President of EuroPacific Capital, which is a brokerage specializing in finding dividend-yielding, value-based foreign stocks.

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