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Peter Schiff's New Year's Resolution And His 2015 Investment Strategy

By Daniela Cambone and Sarah Benali of Kitco News
Friday December 12, 2014 3:20 PM

(Kitco News) - Invest Like the Experts has returned!

This feature was a fan favorite last year so we brought it back as a 2015 outlook centerpiece. Kitco News will be running a Friday feature that will showcase investment gurus' top investment picks for the coming year. A new expert will be unveiled every Friday in the month of December.

Last year, we gave the experts $10,000 to play with but this year we bumped it to $100,000. Of course we also asked which investments they absolutely would avoid in 2015 and their New Year’s resolution.

Part II James Rickards tells Kitco News how he would invest $100,000.

Expert: Peter Schiff

Peter Schiff, CEO, Euro Pacific

Claim to Fame:  CEO & Chief Global Strategist, Euro Pacific Capital

How would you invest $100, 000 in 2015?

Stressing that everyone needs to do due diligence and invest based on their current situation, Peter Schiff says he plans to invest most of it in international stocks, gold and mining stocks.

“Right now, I think gold stocks are so cheap that you can put a higher percentage than you normally would allocated to that sector,” Schiff told Kitco News.  He added, that it does not mean mining stocks are at a bottom but investors need to be able to ride it out.  “I believe that the rewards will be phenomenal for people who can stomach the volatility. But make sure that you’re willing to risk losing money. And if you are willing to take the risk, I think that the risk will be rewarded as long as you’re patient.”

What to absolutely avoid?

“I don’t think money should be in dollars, I don’t think it should be in treasuries.”  Schiff says. He adds that the U.S. stock market is overvalued. “I think a lot of inflation is coming and I think the dollar is going to lose a lot of value … [Y]ou need to look at international equities and you need to look at precious metals.” 

Schiff is also avoiding any long-term U.S. dollar denominated debt. “Everyone has been saying stay away from the bond market and so far the bonds continue to rise but I would still avoid [it].”

“I also would avoid a lot of the high multiple stocks or the companies with no earnings that have been hyped-up. A lot of the social media, Internet-related names, a lot of the IPOs in the last year. There’s nothing but risk in these stocks so you want to stay away from there as well.”

Best advice Peter Schiff has ever received?

“Buy low and sell high.  It’s hard to follow that advice but it’s probably it.”

Who does he look to for Investment Advice?

Schiff says he learnt from John Templeton, Jim Rogers, David Tice, Jim Grant, Bill Fleckenstein. “Before I started developing a following of my own I used to read these guys and watch these guys.”

How about that New Year’s Resolution?

“Maybe I should take some profits next time gold has a huge run because I didn’t take any last time,” Schiff said smiling. “I rode it up but I rode it back down.”  

Schiff added that he is always caught up in the big picture. “So maybe I’ll take a little bit off the table the next time there’s a huge rally. But I don’t think next year would be early enough, I think I’m going to have to wait.”

Remember to come back next week to see the latest featured expert!

By Daniela Cambone and Sarah Benali of Kitco News dcambone@kitco.com and sbenali@kitco.com
Follow Daniela Cambone on Twitter @DanielaCambone and Sarah Benali @SdBenali



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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