Peter Schiff

Faber Vs. Schiff

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Faber Vs. Schiff: “a magical combination”.

Marc Faber points out:
Stocks are going to decline (consistent with the overly bullish sentiment in the market), in particular technology stocks.
Bonds can rally a little bit, but are not to be held for the long term by investors as sovereign bonds will not be safe.
U.S. dollar is very weak, even against the euro.
Marc buys gold every month.

Peter Schiff points out:
There are many shorts in the euro who need to sell out, so he’s betting on a decline in the U.S. dollar.

 

Peter Schiff: Wall Street Journal Article

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Today, Peter’s article on taxes was published in the WSJ. I encourage you to read it.
The article is titled: Peter Schiff: The Fantasy of a 91% Top Income Tax Rate

Here’s Peter’s message.



Dear Investor,
Today an article that I wrote will appear in the opinion pages of the Wall Street Journal. The piece, entitled The Fantasy of a Top 91% Income Tax Rate, will dismantle the myth that wealthy Americans paid higher income tax rates in the 1950’s and 1960’s than they do today. The idea that the wealthy no longer pay “their fair share” of taxes was a central talking point during the presidential campaign and continues to be discussed as part of the current fiscal cliff debate in Washington. By looking directly at IRS tax data, I was easily able to show that the vast majority of wealthy people face a much higher burden today.    
I encourage you to read the article and send it to your friends. Here is the link to the online version. It would be great if the piece can get to the top of the Wall Street Journal’s “Most Read” charts where it can make an even greater impact. It’s very important that as many people as possible figure out that the government is not being honest with respect to taxation.
Unfortunately, the piece may not be viewable by those without an online subscription to the Wall Street Journal. Hopefully it will soon find its way into the unrestricted web in one form or another. I will be on CNBC tomorrow during the 4pm hour discussing the piece.
Thanks for your support.

Cordially,

Peter Schiff
CEO and Chief Global Strategist
Euro Pacific Capital

Non-Farm Payroll number Vs. Unemployment Rate

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Non-Farm Payroll numbers came out at 113000 in September and the unemployment rate fell to 7.8%. Gold initially dropped as everyone thought that the decline in the unemployment rate was positive, but actually it is not. Peter Schiff mentions why in his update here.

As I mentioned before here, the non-farm payroll numbers are more important than the unemployment numbers. Especially when government is underreporting on the unemployment numbers as discouraged workers and part-time workers aren’t counted in the unemployment numbers.

To get a higher employment in the U.S. industry we need to have at least 200000 for the non-farm payroll number, which we didn’t get at all. We only got 113000, which is only half of the goal we need to achieve.

So the reality is: the unemployment rate went up, even though the government statistics say differently. The reason being that the population is growing faster than people are getting jobs.

Chart 1: Non-farm payroll

An Analysis of U.S. Treasury Maturities

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While many investors want to believe that U.S. treasuries (TLT, DTYL) are a safe haven, I will use this article to debunk that myth with plain hard evidence. I believe holding U.S. bonds is the worst investment going forward.

I will make an in depth analysis on debt maturities in this article. I think all investors need to be aware of this trend that indicates looming default in U.S. bonds.

Peter Schiff Interviews CEO Bradford Cooke (Endeavour Silver) at the Euro Pacific Global Investor Conference (31-May-2012)

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Peter Schiff Interviews Brad Cooke of Endeavour Silver at the Euro Pacific Global Investor Conference:

The highlights of that interview are summarized as follows. According to Bradford Cooke, the company has been growing reserves over the years, and production has almost tripled since the economic crisis hit in 2008. In February 2009, Endeavour Silver went to the market through Euro Pacific Capital (Peter Schiff’s company), and equity dilution was less than 10%. The company has also built its employees over the years, growing from a small company to a mid tier company with 2700 employees, including contractors. Working capital is $US 175 million at this time. Last year, cash costs were $US 5/ounce.

By expanding its gold production, the company can keep bringing costs down. Their most interesting project is the recently acquired El Cubo mine in Mexico, which is the next leg upwards in this growth story. The P/E is around 10 right now ($US 20 million earnings per quarter) and Price/Cashflow is around 6, which is extremely inexpensive for a growing silver mine. At these low silver prices, they will store their bullion for sale later on, at higher prices. So they can time their selling to the conditions in the silver market. The best thing is that they store their bullion for free at their warehouses. Another positive aspect is that Endeavour silver is one of the few silver miners that possesses a whole process flow from mining to refined bullion, which is a huge advantage against other silver miners.