Transcription
Gold and silver were down based on the renewed tension in the Gulf. They're going to borrow it and they're going to print it. It's the stock market that should be going down. The food and energy in particular cuz fertilizer and oil and gas. Those prices are going to be permanently higher. This is bad news. I mean maybe it's good news for the oil stocks.
Bonds also went down which is bearish for the stock market and the economy. The yield on the 10-year Treasury closed above 4 and 1/2 percent on a weekly basis. Rising bond yields are obviously a negative for the real estate market. And a negative for the real estate market is bullish for gold and silver. Because what happens if we have a big drop in the real estate market? Well, the Fed has to come in and bail everybody out. We get more money printing. We get more inflation. They expected housing sales to rise, existing home sales, instead they fell by 2.4% on the month. Year-over-year now. So, there is an affordability crisis. Homes have never been less affordable. But you're diminishing the rights of the owner of that property to sell it to whoever he wants.
Gold and silver were down based on the renewed tension in the Gulf. Gold was down about 1%. I mean not that big a drop. Uh closed the week at 4,119.40. Silver though down 3 and 1/2%. Below $60, 59.76. But it was the gold and silver mining stocks that really took it on the chin. The GDX was down 5% and the smaller ones GDXJ uh were down 6%. But the news was actually bullish for gold. Bullish for silver. The fact that the war is going to continue is bearish for stocks but not for gold and silver. Gold and silver benefit not only from the uncertainty that surrounds war, but from the inflation that always finances it. And because this war is not ending, and it may never end. I mean, this is again is a huge quagmire that Trump has gotten us into. Just as bad as Afghanistan or Iraq. Another huge mistake. Only this time you could chalk it up to Trump. Uh but it's going to cost us a lot of money. The war is going to cost us a lot of money. The peace, if we ever get it, is probably going to cost us even more money. Uh where's that money going to come from? They're They're going to borrow it, and they're going to print it. It's going to drive people out of the dollar and into gold and and silver. So, the metals should be rising on this news. It's the stock market that should be going down based on the prospects of bigger budget deficits and higher inflation.
>> Markets fell where fear usually drives money, and that contradiction deserves more attention than the price decline itself. Peter Schiff notes that wars often lead to larger deficits and expanding liquidity, yet precious metals weakened instead of strengthening. That disconnect suggests traders are reacting to short-term positioning while overlooking the inflationary consequences governments often create. Long-term investors should pay closer attention to policy responses than to day-to-day market volatility. Next, Peter Schiff explains why today's price action appears to contradict the fiscal realities developing beneath the headlines.
>> In fact, it should be obvious by now that Iran now controls the Strait of Hormuz. They had no control over it before the war, nor did they have any pretense to take control. And in fact, had we done nothing, had we not started a war against Iran, and Iran had just taken over the straight, the whole world would have united around us to repel that, to put a stop to that, because they would have been the bad guys. But we gave Iran an excuse to do what they probably always wanted to do, but could never find an excuse to do it until we dropped it in their lap. So we basically fell into their trap by attacking them, and created a pretext for them to take over the straight. And now they're going to be charging a toll, probably forever, for the ships that are going through there. That is going to substantially increase the cost of everything that transports through that straight, which is going to be food and energy in particular, because fertilizer and and oil and gas, right? So those prices are going to be permanently higher. This is bad news. I mean, maybe it's good news for the oil stocks, but you know, it's not good news for the overall stock market, it's not good news for the economy. And that's good news for gold and silver, because bad news for the economy means more government stimulus, more inflation, more money printing. The irony of this is that everything that's happening is bearish for stocks, yet stocks are going up, is bullish for gold and silver, yet gold and silver are going
>> Markets are celebrating while one of the world's most critical shipping routes faces rising geopolitical uncertainty. According to Peter Schiff, prolonged disruptions to energy supplies and global trade can continue feeding inflation long after the headlines fade. Investors often underestimate how supply shocks reshape fiscal policy, contributing to larger deficits and renewed monetary support. That's the environment where wealth preservation typically becomes most important. Next, Peter Schiff explains why resilient stock prices may be masking a far more inflationary reality beneath the surface.
>> Now, bonds also went down, which is bearish for the stock market and the economy. The yield on the uh 10-year Treasury closed above 4 and 1/2% on a weekly basis now. 4.56 is the 10-year. And on the 30-year, we're now back above five, 5.06. And more significant than where the yields are now is where the yields are headed. Because if you look at a chart of the bond market, it looks to me like there's going to be a major breakdown uh in in that market. Uh we're going to see a sharp fall in the price of of bonds. And that means a big rise in the the yields. And that is a big negative for the stock market. It's a negative for the economy. It's a negative for the housing market. In fact, the 30-year uh mortgage, I think went out at about 6 and 1/2%. And I'm going to talk about housing uh after this this break that's coming up. Uh I got a lot to say about housing in this podcast. So, I'm going to table that for a minute. But, rising bond yields are obviously a negative for uh the real estate market. So,