Silver Finds New Support at $30, According to Schiff
Recent Developments in Silver's Market Value
In a recent episode, Peter Schiff discussed the significant rise of silver above $30 per ounce. He also touched on the latest Federal Open Market Committee (FOMC) minutes, where the Fed hinted at a possible delay in rate cuts. Additionally, he highlighted the SchiffGold Silver Breakout Sale, which was organized to mark the metal's long-awaited surge.
Silver's New Support Level
Silver's recent peak at $32.50 on Monday has set a new support level at $30 per ounce. Schiff explains this by comparing it to gold's behavior when it broke the $2,000 mark. Despite occasional dips below $2,000, gold never stayed down for long and quickly bounced back. He believes that $30 will serve a similar function for silver.
Fed's Uncertainty and Market Response
Despite the Fed's uncertainty about future rate cuts, it continues to hint at a more relaxed monetary policy later this year. However, the market responded by selling off gold and silver, which Schiff believes is a misunderstanding of why these prices are rising. He argues that even if the Fed never cuts rates, gold and silver prices should still skyrocket due to their current undervaluation.
Fed's Misinterpretation of Economic Data
The Fed has expressed willingness to raise rates if the economic data supports it, but Schiff argues that the necessary data is already present. He believes that the Fed's failure to act on this data and its continued discussion of rate cuts demonstrates that it will never raise rates.
Misunderstanding of Economic Growth
Fed officials believe that economic growth contributes to inflation, a notion that Schiff believes is fundamentally flawed. He argues that economic growth should lead to lower prices, as it means the economy is producing more goods and services. This increased supply should, in theory, make these goods and services less expensive.
Historical Perspective on Silver
Schiff concludes by discussing the history of the U.S. government removing silver from coins in the 1960s. He argues that the government went to great lengths to conceal this change, effectively defrauding American citizens of their lawful silver money.
Other Market Developments
In other market news, the price of copper has recently skyrocketed. For a detailed analysis of copper's record high price, Schiff recommends checking out his blog.
Final Thoughts
This article provides a comprehensive overview of the current state of the silver market, as well as the wider economic context. It raises important questions about the role of the Fed and the nature of economic growth. What are your thoughts on these issues? Do you agree with Schiff's analysis? Share this article with your friends and join the conversation. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6 pm.
