Peter Schiff Says Gold and Silver Losses May Signal Liquidity Stress

Economist Peter Schiff said Friday that steep losses in gold and silver may point to liquidity strain reaching broader markets next week, as U.S. stocks also ended lower.

Schiff described the selloff as a “short-term liquidity problem that will likely show up in the broader markets perhaps as soon as next week.” His warning is a forecast; Friday’s simultaneous losses in metals and stocks do not by themselves establish that a wider liquidity squeeze is underway.

Spot gold was near $3,879.90 an ounce in late U.S. trading Friday, down $141.60, or 3.52%. Spot silver was near $49.015 an ounce, down $3.150, or 6.06%.

The S&P 500 fell 140.32 points, or 1.8%, to close at 7,580.07. The Nasdaq Composite dropped 747.73 points, or 2.9%, to 25,437.00. Intel shares fell almost 29% after the company’s profit forecast came in below analysts’ expectations.