Gold Videocast: Dollar Collapse and the Rise of China

In his October Gold Videocast, Peter Schiff turns his attention to China, it's appetite for gold, and the role it may play in the collapse of the US dollar.
0:20 – The dollar has rallied on the false premise that the United States is the only major central bank in the world that will be ending its quantitative easing.

1:53 – The US economy is weaker than the economies of Europe and Japan. When investors realize this, they will return to gold.

2:30 – China is the world’s largest holder of US dollars. In preparation for a devaluation of the dollar, the Chinese have been moving their reserves into gold.

3:09 – The launch of the iPhone 6 highlights the difference between the US and Chinese economies.

5:02 – China’s official gold holdings are unknown, because the Chinese don’t want the world to know how much more gold they intend to buy.

6:00 – There will be support for gold at the $1200 level, because there are big buyers for the metal in emerging markets across the world, not just China.

6:32 – When confidence in the US dollar disappears, people will turn to gold. When that happens, $1200 per ounce gold will seem cheap.

China footage by CaseyNeistat, NTDTV, Vagabond Journey, BON TV China, and clearasvodka.



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.