Peter Schiff - 2012 Will Be the Year of Reckoning

With continued fear surrounding the banking and monetary system as we head into 2012, today King World News interviewed Peter Schiff, CEO of Europacific Capital, to get his thoughts on what lies ahead. When asked about his outlook for 2012, Schiff remarked, “I think you are going to have a lot of choppiness in the stock market, but in the end I don’t expect a lot of movement in stocks. I don’t expect a crash or a big run, instead I think prices will continue to move sideways. In terms of the stock markets relation to gold I think it will continue to fall as a ratio.”

Peter Schiff continues:

“In fact, we could have a bigger decline in the Dow in terms of gold, in 2012, than we had in 2011. We are toward the middle to upper end of the range where stocks will be trading in 2012. Stocks will finish 2012 somewhere between 10,000 and 13,000. So the Dow may actually trade lower in 2012, but I don’t think it will be something crazy like a 30% or 40% drop.

I don’t think people will make money in stocks in 2012, especially in terms of gold. The price of gold should move quite a bit higher next year. We should decisively take out $2,000. It’s hard to say how high gold will go, but it should trade above $2,500. I think gold will have an even better year in 2013.

There will be continued solvency issues in 2012, along with more sovereign credit and banking problems. There will be more bailouts. FHA will need a bailout, the post office will need one also. So, you are going to see more government printing. There will be more talk of stimulus. This might be the year where the Fed comes out of the closet with QE3 and finally admits they are doing it.

I also expect all of these foreign central banks that have been buyers of gold to continue to increase their holdings....

Continue reading the Peter Schiff interview

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