Peter Schiff Talks About Worries Regarding Gold Price Changes and Disapproval of Court Decision Against Donald Trump
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Economist Peter Schiff highlights that gold mining companies, like Newmont Corporation, are facing challenges due to two primary factors. Firstly, inflation usually boosts gold prices, but currently, gold prices aren’t rising much despite inflation.
Secondly, the cost of mining gold is increasing, making it more expensive for these companies to extract gold from the ground.
Consequently, despite their efforts, these companies are earning less profit compared to before.
Hence, this was seen as negative news for the gold market as the gold prices are not increasing significantly despite inflation. Furthermore, the rising cost of mining gold makes it more expensive for companies like Newmont Corporation to extract gold, leading to reduced profits for these companies.
Schiff believes that if the U.S. Federal Reserve hadn’t increased interest rates, inflation would be even higher. Moreover, he strongly opposes a recent court ruling against former President Donald Trump in New York.
Peter Schiff’s Perspective on Gold Mining Stocks and Inflation
As mentioned above, gold mining stocks are performing very poorly, reaching a 25-year low. This is because the expenses of extracting gold are surpassing the selling price.
Despite gold selling at nearly $2,000 per ounce recently, mining costs continue to rise. Schiff, who favors gold over bitcoin, believes this highlights how inflation is negatively impacting gold stocks.
Schiff believes that the current state of affairs supports his longstanding belief that actions by the U.S. Federal Reserve and other central banks are worsening inflation. Despite criticizing the Federal Reserve for two decades, he surprisingly finds the current interest rates acceptable for the U.S. economy.
Peter Schiff’s Views on the Federal Reserve and Trump’s Fine
Schiff said in his podcast that if the Federal Reserve hadn’t raised interest rates in 2023, inflation in the U.S. would be even worse. He responded to critics of this move by saying that the current interest rate policy isn’t restricting anything.
Despite rate increases, the government borrows more to cover higher interest costs, potentially impacting inflation and the gold market.
Meanwhile, Schiff was upset about a New York court’s decision to fine Donald Trump over $350 million. He thinks the legal system in the U.S. is becoming too political. The fine came from a judge named Arthur Engoron, who said Trump committed fraud in his business dealings from 2011 to 2021.
Schiff worries that this kind of ruling makes people lose faith in the U.S. legal system and might make international investors hesitant to put their money in the country.
Schiff’s remarks on the Federal Reserve’s interest rate hike underscore concerns about inflation. The court’s decision against Trump raises worries about political influence in the legal system, potentially impacting investor confidence in the U.S. and the gold market.
