Poland is the latest country to pull its gold out of foreign banks. The National Bank of Poland wants to take back, essentially repatriate a hundred tons of gold from the banks, a hundred tons of gold looked like. Have you ever wondered anyway? It’s a hundred tons of gold from the Bank of England and they’re telling England we want it back we don’t trust you. The reason is it wants to limit it’s a geopolitical risk but you think what is more geopolitically safe than the UK right? The UK my gosh there…well maybe not apparently there is a reason for concern for many countries to answer this.
We are joined now by Peter Schiff who is the CEO of Euro Pacific Capital and he’s good enough to join us. My goodness you know here we are talking about Great Britain, aren’t they the perfect place to store gold why would countries be telling the UK we don’t trust you to hold our gold anymore? What’s going on Peter?
Well you remember way back when the UK dumped all their gold I think they sold all their gold when it was under $300 an ounce and of course the appreciation in pounds has been a lot greater than it has been in US dollars so you know if Britain gets desperate they don’t have any of their own gold you know they may try to see some of the goal that they do have which you know it makes sense that the the Poles would want to get their gold back just in case you know. One of the good things about gold is that you know you don’t have any counter party risk. It’s not somebody else’s liability but what a risk you take is storing it with a third party because what if they don’t give it to you when you need it. So I think it’s not that foreign central banks are wanting more gold because they’re preparing for a post dollar world where gold is going to be the primary reserve asset backing up currencies not dollars. But not only do foreign governments want more gold but they want that gold in their own possession they want to make sure they have it when they need it you know. I’m also thinking and I understand your point and I take it very well and it’s very well-reasoned and thought through obviously from someone like yourself who deals in gold all the time but I’m also thinking that UK recently has done a couple of things that make me think look you could love it as well as think they’re communists. Think wonderful hey Tom whatever right but recently the UK told Venezuela you cannot have your hands on your own gold now whether it’s been as well or a country may be that I love or don’t like should any country have the right to tell another country you put your gold here but we’re just gonna keep it because we don’t like your politics well I guess that’s what they call sovereign immunity but you know now you run the risk of people not wanting to store their gold with you if you’re gonna come up with excuses not to give it back and and so I think it makes sense because you know I don’t know why anybody has their gold stored in the United States I mean I think that’s probably one of the most dangerous places to keep it I think maybe it’s safer in the UK than the US but a lot of countries have their gold here with us and you know they should really be trying to get it back remember the Germans tried to get it back I forget how many years ago and they weren’t successful I think they had to abort the in South you know that tells you you just said one of the worst or I think you said dangerous places to keep your gold is in the United States I don’t think I’ve ever heard anybody say that could you can you extrapolate on that a little bit for us well I mean I think there’s a lot of political risk here because I do think that we’re headed for a major currency crisis I think the dollar is going to collapse and so that’s gonna take down the US economy our entire way of life has been built on the privilege of issuing the world’s reserve currency and when the dollar loses that status I mean all hell’s gonna break loose here in the US and you know I don’t know what is going to happen but you know we could take desperate measures and of course we could have socialists in control of the US you know economy if the Socialists have the white house and they have both chambers of Congress so who knows I mean they could declare some kind of national emergency you know the US has a history of confiscating gold in the 1930s we defaulted on our obligations to pay gold you know once upon a time we told the world if you had$35 we would give you an ounce of gold that was an i of you as like a commitment like a bond and then we defaulted so we’ve done desperate things in the past when our backs were to the wall so if we have real economic chaos here you know the US might just nationalize or seize any gold that it has custody of so I would want to take that chance if I was a foreign government
Peter Schiff making headlines here on the news with Rick Sanchez thank you my friend, appreciate your time. So you haven’ theard that we’re the ones covering the stories that you won’t see covered anywhere else in Venezuela Kazakh steppe let’s go to Hong Kong and the media reaction to that has been crickets how about the way we cover those stories what the hell does that mean Baliwha-wha-wha that’s the key word in this case uprising keep watching this is the right thing for members of the media to do to actually pick sides but if you like what you see subscribe