This panel was part of the opening Ceremonies. The panel was entitled "Has Gold Finally Found its Catalyst?" The moderator of panel was Matt McCall of Penn Financial Group. The members of the panel were Mike Larson of Weiss Research and Peter Schiff of Euro Pacific Capital.
Matt: We at are the beginning of an up leg in the gold market. US inflation is 2% for the last 10 months, but interest rates will stay low. The Fed cannot normalize interest rates (because their policies have not been successful). If they issue long term bonds it would cause interest rates to rise and therefore cause lots of problems with debt repayment.
Peter: Fed is not going to raise interest rates. The last interest rate rise caused the stock market to tank, so they cannot raise them.
Mike: We should own gold for safety. QE has not worked. Japan's action has not worked.
Peter: They will not raise interest rates because it would cause a recession. Before they wanted price stability, now they do not want price stability. They want inflation. Gold will go up because currency no longer pays interest any more. This is just like gold. He thinks gold will go up because currency is losing value.
Mike: The percentage in gold to hold is 7.5% to 10%. We should buy more in current pull back. Everything is overvalues, that is all asset classes.
Peter: Bonds are the riskiest investments today. To stop the bubbles from bursting, they will keep interest rates low. For Bonds, it is bad to be paid in dollars in the future as the dollar will be worth less. This is a way to transfer the savings of the people to the government who has debt.
Peter: You should be buy real gold. As demand for gold goes up, gold prices will go up. Also, buy gold stocks, but buy the right ones. You can also buy gold by Mutual Funds and ETFs. The hedge funds do not own gold stocks, so gold stocks are still low. They may start to buy them now as the Fed's policies have not worked.
Mike: Big money is starting to look at gold.
Peter: How do you know an ETF has gold? Look at their audit.
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