Peter Schiff on Gold Movements

Schiff on the gold movement. We are mostly in agreement. The correlation is still there, but as we've noted many times, we are seeing bearish divergences. At some point we expect a general stock market sell-off, rising gold, rising gold and commodity stocks, soaring oil, and a stagnant economy.

We're not there yet, but when gold breaks and holds 1000 in a few days to a couple of weeks (after a throwback, then we may well see this decoupling event occur.

While a declining dollar index is not the same thing as inflation, it is a reasonable measure of dollar devaluation relative to other currencies. This is a subtle, but important discrepancy from which we have some problem with some of Schiff's remarks. We believe he's just simplifying the discussion for most people.