KazPost

Kazakhstan News
Friday, Jan 27, 2023

‘This is crypto extinction’: Peter Schiff predicted the 2008 financial crash — now he sees the total destruction of digital currencies very soon

‘This is crypto extinction’: Peter Schiff predicted the 2008 financial crash — now he sees the total destruction of digital currencies very soon

With the massive pullback in cryptocurrency prices and the collapse of crypto exchange FTX, the term “crypto winter” is now making headlines. But Peter Schiff, CEO and chief global strategist at Euro Pacific Capital, doesn’t believe that’s an accurate term to describe the situation.

“This is not a #crypto winter. That implies spring is coming. This is also not a crypto ice age, as even that came to an end after a couple of million years,” he writes in a tweet. “This is crypto extinction.”

That’s a dire warning. But it’s not the first time Schiff has sounded the alarm.

Last year, when bitcoin hit $50,000 and the upward momentum seemed unstoppable, he said “While a temporary move up to $100K is possible, a permanent move down to zero is inevitable.”

If you share the same view, you probably want to know where Schiff is finding refuge in this ugly market.

Since Euro Pacific Asset Management has released its latest 13F filing — a report that institutional investment managers file quarterly to disclose their holdings — let’s take a look at some notable themes in Schiff’s portfolio.


Gold

Schiff has long been a fan of the yellow metal.

“The problem with the dollar is it has no intrinsic value,” he once said. “Gold will store its value, and you'll always be able to buy more food with your gold."

In fact, when Schiff tweeted about the crypto extinction, he also mentioned that gold “will rise again to lead a new breed of asset-backed cryptos.”

As always, he’s putting his money where his mouth is.

As of Sept. 30, Euro Pacific Asset Management held 1.655 million shares of Barrick Gold (GOLD), 431,952 shares of Agnico Eagle Mines (AEM), and 317,495 shares of Newmont (NEM).

In fact, Barrick was the firm’s top holding, representing 6.8% of its portfolio. Agnico and Newmont were the third and sixth-largest holdings, respectively.

Gold can’t be printed out of thin air like fiat money, and its safe-haven status means demand typically increases during times of uncertainty.

If gold prices go up, miners like Newmont, Barrick, and Agnico will likely enjoy bigger profits.


Recession-proof income stocks

Dividend stocks offer investors a great way to earn a passive income stream, but some can also be used as a hedge against recessions.

Case in point: The second-largest holding at Euro Pacific is cigarette giant British American Tobacco (BTI), accounting for 5.3% of the portfolio.

The maker of Kent and Dunhill cigarettes pays quarterly dividends of 74 cents per share, giving the stock an attractive annual yield of 7.3%.

Schiff’s fund also owns over 157,766 shares of Philip Morris International (PM), another tobacco king with a dividend yield of 5.0%. The Marlboro cigarette producer is Euro Pacific’s seventh-largest holding with a portfolio weighting of 3.5%.

The demand for cigarettes is highly inelastic, meaning large price changes only induce small changes in demand — and that demand is largely immune to economic shocks.

If you’re comfortable with investing in so-called sin stocks, British American and Philip Morris might be worth researching further.


Agriculture

When it comes to playing defense, there’s one recession-proof sector that shouldn’t be overlooked: agriculture.

It’s simple. Whatever happens, people still need to eat.

Schiff doesn’t talk about agriculture as much as precious metals, but Euro Pacific does own 124,818 shares of fertilizer producer Nutrien (NTR).

As one of the world’s largest providers of crop inputs and services, Nutrien is positioned solidly even if the economy enters a major downturn. In the first nine months of 2022, the company generated record net earnings of $6.6 billion.

Nutrien shares are down about 3% in 2022, not nearly as bad as the S&P 500’s 20% decline year-to-date.

Given the uncertainties facing the U.S. economy, investing in agriculture could give risk-averse investors peace of mind.


Newsletter

Related Articles

KazPost
Close
0:00
0:00
Tesla reported record profits and record revenues for 2022
Germany confirms it will provide Ukraine with Leopard 2 tanks
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Federal Reserve Probes Goldman’s Consumer Business
China's first population drop in six decades
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Tesla slashes prices globally by as much as 20 percent
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
After Failing To Pay Office Rent, Twitter May Sell User Names
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
FIFA president questioned by prosecutors
Britain's Sunak breaks silence and admits using private healthcare
Dirty bomb fears as URANIUM is found in cargo at Heathrow
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
Saudi Arabia set to overtake India as fastest-growing major economy this year 
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Hong Kong property brokerages slash payrolls in choppy market
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Dubai announces $8.7 trillion economic plan to boost trade, investment and global hub status
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Hong Kong to scrap almost all its Covid rules
EU calls screening of travellers from China unjustified
US imposes Covid testing for visitors from China
Ukraine President Volodymyr Zelenskyy Addresses Joint Session of Congress - FULL SPEECH
Where is Rishi? Chancellor Jeremy Hunt's excuses about the UK's economic challenges just don't make sense
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
Corruption works: House Financial Services Chair Waters doesn't plan to subpoena her donor, Sam Bankman-Fried, to testify at hearing on FTX collapse
Ronaldo's new contract...
Tax fraud verdict again exposes illusion of Trump the master businessman
Tax fraud verdict again exposes illusion of Trump the master businessman.
Double standards: UK lawmakers attack EU chief over Ireland claims
Yellen hints at ‘national security’ probe into Twitter purchase
Elon Musk reinstates Donald Trump's Twitter account.
George W. Bush and Barack Obama will hold back-to-back disinformation conferences
Miss Argentina and Miss Puerto Rico are not single anymore
Boris Johnson is about to sign a contract with an American company to get millions for giving speeches. Something he did until very recently for free.
Solar + Powerwall ensures you never lose power, even if the grid goes down
Bavarian Prime Minister Söder: "There is no reason for mask obligations, no lockdowns anymore”
MSNBC tries to discuss the January 6th events with a focus group
Europeans don't want to starve and freeze for Zelensky and Ursula von der Leyen.
This man paid for strangers' grocery and it moved them to tears
×