Senate candidate Peter Schiff discusses gold, silver, the Dow Jones, and President Obama’s visit to Asia in his November 16, 2009 Video Blog.
(Video follows excerpt and commentary)
Yeah, the Dow is up 130-140, but in real purchasing power, as measured by gold, the Dow lost value. People can buy fewer ounces of gold with their stocks today than they could yesterday. People have to understand, investors in particular have to understand, how inflation creates this illusion and how people can actually be growing poorer even as their brokerage accounts are rising.
Mr. Schiff’s comments were succinctly explained in the latest Schaef Report: The Fed Playing God With Our Money, where Mr. Schaef clearly outlines how the purchasing power of the Dow Jones has been significantly reduced in terms of gold, silver and oil. As central banks in the US around the world continue to print money, the purchasing power of gold will continue to increase, or at the very least it will be preserved, while the value of paper currencies will decrease. As we’ve said before, what good does Dow 30,000 do for an investor when the price of gold is $5000 an ounce, a gallon of gas is $8, and a Starbucks coffee costs $12?
Watch Peter Schiff’s Video Blog (November 16, 2009:
Hat Tip to Rick Blaine for alerting us to today’s Schiff Video Blog