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‘This is crypto extinction’: Peter Schiff predicted the 2008 financial crash — now he sees the total destruction of digital currencies very soon. Here are 3 assets he likes instead
Sat, November 19, 2022, 9:00 AM
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‘This is crypto extinction’: Peter Schiff predicted the 2008 financial crash — now he sees the total destruction of digital currencies very soon. Here are 3 assets he likes instead
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 just 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 7.6%.
