By Dominique de Kevelioc de Bailleul
Following the surprise move by the Fed and five other central banks to lower the interest rate of dollar swaps by 50 basis points, through Feb. 1, 2013, Euro Pacific Capital CEO Peter Schiff issued a special and urgent update to investors.
“There’s an old expression that nobody rings a bell when it’s time to buy or sell,” Schiff began his video message of Wednesday. ” . . . Well, I think the world’s central banks rung a pretty loud bell today to buy precious metals.”
As the Dow opened on Wednesday, soaring more than 400 points, gold vaulting more than $30 per ounce and silver adding more than a buck following the Fed announcement that the world will soon be flooded with more dollars due to the coordinated cut in the swaps rate, the US currency dropped sharply against its peers which comprise the UDX.
“I believe that it [the dollar] is going to lose a lot more value, not just against other fiat currencies, but against real money, gold and silver,” Schiff continued. “I think investors should be buying. Those of you who’ve been on the sidelines waiting for an opportunity to buy, I would not wait much longer; I would just buy.”
