Peter Schiff Crash Proof Book Summary

https://www.reddit.com/r/PeterSchiff/comments/u4moj3/peter_schiff_crash_proof_book_summary/

created by captmorgan50 on 16/04/2022 at 01:19 UTC

13 upvotes, 2 top-level comments (showing 2)

Schiff recommends owning gold to silver at 2:1 ratio. Gold is historically more stable and Silver less. Schiff likes 90% "Junk" Silver.
Gold to silver price ratio = Gold to Silver ratio is historically 54:1(fairly valued). Gold is overvalued at 75:1 and Silver overvalued at 45/35:1
Don't trust "paper" gold and silver certificates. "If you don't have it you down own it."
Gold Futures contracts expose you to counterparty risk. The risk that the other party my go bankrupt in a collapse and not be able to pay you. Physical gold has NO counterparty risk.
During metal bull markets Silver tends to do better than Gold. The opposite is true of metal bear markets
"Junk Silver" Ratio = $1 face value of normal circulation 90% coins is 0.715oz silver
Schiff Recommends 10-25% of investment portfolio in physical precious metals
5% of Portfolio allocated to currency's according to Axel Merk. Use like a money market account for money you don't want to invest but don't want to leave in cash.
Use foreign money market accounts for a liquid investment. We want to have money for when the collapse happens. Merk Hard Currency fund is a good choice for this.
When the dollar fails, Asia with be hit hardest early. Because Asia is doing most of the subsidizing of the dollar. But have the most to gain once those subsidies stop. Europe will affected less early in the collapse.
Electric, oil and gas utilities are all good choices. These are sometimes called "bond substitutes" but pay a higher dividend. High demand, predictable earnings and captive audience.
Foreign real estate is another good choice.
Mining stocks are a leveraged play on the price on gold. If you want to be more aggressive, own more mining stocks.
Dow/Gold ratio has hit 1:1 two times in the US history. The high was 44:1 in 2002. 20:1 in 1920's
Keep enough cash for no more then 3-6 months of living expenses. And keep those in short maturity instruments.
Do not have adjustable rate debt. Only fixed rate debt.
Do not buy into industry or stocks because of government backing.
Invest in raw materials and agriculture companies that sell oversees
Invest in creditor, not debtor nations
Good places to invest include Canada, Norway, Netherlands, New Zealand, Australia, Hong Kong, Singapore, China, Switzerland
3 legged stool of investments. 1st is mining stocks and gold, 2nd is foreign dividend paying whose customers are getting richer, and 3rd is liquid foreign cash and bonds.
Avoid inflation protected bonds from the US government
Raw materials, energy, chemicals, manufacturing, Ag, utilities, tech are good sectors
Avoid finance, internet, residential property, high P/E companies with no dividend
Dow/Gold Ratio – Dow undervalued at 4oz gold, fair value at 6-7oz, and overvalued at 10oz+
The Dow/Gold Ratio tends to overcorrect in both directions. Take advantage of these swings.
Gold is a good investment in deflation AND inflation. During deflation, gold's 0% yield is higher than dollars negative yield. During inflation, the purchasing power of dollars is decreased and gold isn't
If storing large amounts, store it in Switzerland with a reputable company
Do not store extra gold in a bank vault. It is vulnerable to asset seizures, bank holidays and confiscation
Small amounts are ok to store in a home safe
Silver/Gold is mined at a 10/1 ratio

Comments

Comment by captmorgan50 at 16/04/2022 at 01:20 UTC

1 upvotes, 0 direct replies

Look at my profile for more information

https://www.reddit.com/user/captmorgan50/comments/rnftyk/book_summaries/

Comment by IRideParkCity at 16/04/2022 at 01:46 UTC

1 upvotes, 2 direct replies

Saved. Thanks. I'm pretty new to Peter Schiff but damn is he fire. I have most of his books in my amazon cart, will buy and read soon.