Peter Schiff: Gold Is the ‘Last Haven Standing’

Turning to Japan, Schiff notes the country has been “ironically blessed; while its debt problems are severe, they’ve been severe for so long that markets are willing to take that as a sign of stability.”

However, he adds that aside from the public debt problem, Japan does have “fairly impressive” fundamentals. They are still a productive economy with high personal savings and exposure to booming China.

Rumors recently surfaced that former Finance Minister (now Prime Minister) Yoshihiko Noda would “take bold actions if necessary” to restrain the yen’s speculative appreciation. Schiff writes Noda “doesn’t seem to understand that this is a permanent move away from dollars and euros and into anything which might be a better alternative. This is not driven by Wall Street gamblers, but rather by everyday investors seeking shelter.” Schiff discounts the notion of a double-dip recession, instead arguing “we’re really in the midst of a prolonged economic depression.”  

After recounting major currency patterns of the past few years, Schiff concludes, “Fortunately, gold doesn’t have a central bank, so it can rise as fast as the dollar falls …That is why gold is doing so phenomenally well, and why it should continue to do so.”