“When the world figures out the position that we’re in, gold is going to the moon.” – Peter Schiff
On a CNBC interview yesterday, Peter Schiff of Euro Pacific Capital made some bold statements about his perspective on the long term value of Gold. “Gold can certainly make a move up to $1,700 or $1,800, but I think ultimately it’s going a lot higher than that” Schiff stated. “The Fed has no exit strategy, it’s all fluff. There is no taper, because taper is impossible without collapsing the economy, the banks, and the U.S. government.”
Schiff believes that continued monetary easing from the Federal Reserve will lead to inflation that will spike gold. So does talk that the Fed will look to “taper” easing worry him? “What we’re probably going to have to get from the Fed is more quantitate easing. They’re going to have to print even more money and buy even more bonds to prevent this market from imploding, and that is extremely bullish for the price of gold.”
When it comes to the short term value of gold, Schiff admits that the action in gold has not been good—but he believes that gold is undergoing a bottoming process. “You do have a lot of speculators who have been unwinding their technical gold position; technically there has been a lot of selling, and the sentiment is very negative in the gold market so people are selling the rallies,” Schiff said. “But that’s how bottoms are made. And once gold does bottom, the sky is the limit. When the gold market turns, it’s going to be vicious. And I think it’s going to rally even faster than it went down.”
For Schiff, gold’s lunar journey is simply a matter of time.
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