Peter Schiff predicted the financial crash of 2008 — now he sees the complete destruction of digital currencies very soon.  Here are 3 things he likes

Peter Schiff predicted the financial crash of 2008 — now he sees the complete destruction of digital currencies very soon. Here are 3 things he likes

'This is the demise of cryptocurrencies': Peter Schiff predicted the financial crash of 2008 — now he sees the total destruction of digital currencies very soon.  Here are 3 things he likes

‘This is the demise of cryptocurrencies’: Peter Schiff predicted the financial crash of 2008 — now he sees the total destruction of digital currencies very soon. Here are 3 things he likes

With the massive decline in cryptocurrency prices and the collapse of the FTX cryptocurrency exchange, the term “crypto winter” is now making headlines.

But Peter Schiff, CEO and chief global strategist at Euro Pacific Capital, doesn’t think that’s an accurate term to describe the situation.

“This is not a #cryptowinter. This means spring is coming. This is also not a cryptic ice age, as even that came to an end after a few million years,” he writes in a tweet. “This is the disappearance of cryptocurrencies.”

This is a dire warning. But this isn’t the first time Schiff has sounded the alarm.

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

If you feel the same way, you probably want to know where Schiff is taking refuge in this ugly market.

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

Gold

Schiff has long been a fan of the yellow metal.

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

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

As always, he puts his money where his mouth is.

As of September 30, Euro Pacific Asset Management owned 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 company’s top holding, accounting for 6.8% of its portfolio. Agnico and Newmont were the third and sixth largest entries, respectively.

Gold cannot be printed out of thin air like fiat money, and its safe-haven status means that demand usually increases in times of uncertainty.

If gold prices rise, 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.

Example: The second largest holding in Euro Pacific is cigarette giant British American Tobacco (BTI), which represents 5.3% of the portfolio.

The maker of Kent and Dunhill cigarettes pays a quarterly dividend of 74 cents per share, giving the stock an attractive annual yield of 7.6%.

Read more: Trade Up While the Market is Down: Here Are the Best Investing Apps to Seize Once-in-a-Generation Opportunities (Even If You’re a Newbie)

The Schiff fund also owns over 157,766 shares of Philip Morris International ( PM ), another tobacco king with a 5.4% dividend yield. The Marlboro cigarette maker is Euro Pacific’s seventh largest holding with a portfolio weighting of 3.5%.

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

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

Agriculture

On the defense side, there is one recession-proof sector that should not be overlooked: agriculture.

It is simple. No matter what happens, people still have to eat.

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

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

Shares of Nutrien are up about 3% in 2022, in stark contrast to the S&P 500’s double-digit year-over-year decline.

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

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This article provides information only and should not be construed as advice. Provided without warranty of any kind.

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