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Peter Schiff: Gold Bull

Written By Brian Hicks

Posted June 14, 2013

Peter Schiff certainly has a reputation for not only being a highly opinionated individual, but also one who typically tends to hit the mark on occasion. With a great deal of talk about where gold is likely to go, Schiff is now weighing in with his opinions, and they aren’t exactly in-line with those who consider themselves gold skeptics. 

GOLD OUTLOOKInstead of taking a cautious stance on the precious metal, Peter Schiff is going bull-on bullish. As far as Schiff is concerned, gold is likely to go up in value, and selling it at this point would be a poor idea.

“I think a lot of foolish people are selling; a lot of speculators are selling—people who think the U.S. economy is recovering, and who think the Fed has got it right,” said Schiff in an interview with Index Universe. “So they’re being suckered into selling their gold, and buying U.S. stocks instead, I suppose. But gold prices are going much, much higher, and the traders who sold their gold are going to buy it back at much higher prices—I have no doubt they’ll be back in the market.”

Schiff isn’t allowing tight opinions on the metal to keep him from buying, either. “I’ve used the weakness as an opportunity to buy more,” said Schiff. “The fundamentals have never been better for gold. The fact that there’s so much negativity in the mainstream investor community and the media, I think, is an excellent sign.”

Worldwide Effects

Gold has been affected by a variety of different factors, many of which have caused investors and analysts alike to have a hard time deciding how to approach the metal. Since gold is typically purchased as a hedge against inflation, many people are pointing to the lack of inflation in America that people originally thought likely to pop up by now.

As far as Schiff is concerned, however, the inflation is already here, and it’s happening right now.

“You have a lot of central banks around the world that are actively intervening in the markets to weaken their currencies,” said Schiff. “You have central banks that are cutting interest rates now—not because their economies are weak, but because their strong currencies are making them worried, which they shouldn’t. What that does is allow America to export some of its inflation to other countries. So other people end up paying more for goods so that Americans can pay less than they otherwise would.”

Metals in general have had a difficult time as of late, however, and this is the same across the entire world. Gold and silver have been down, with copper and other industrial metals fairing poorly as well. A great deal of global circumstances have played into the shorting of metals, many of which have caused mines to be under massive amounts of tension.

Peter Schiff believes that even though worldwide issues have caused gold to plummet, the metal will quickly be on the rise soon. And when it happens, Schiff says, it’s going to happen quickly.

In other words, those who are waiting for some light warning signs before jumping on the gold bandwagon may not get the advance notice they’re looking for. Get involved now or it might be too late, Schiff believes.

Schiff’s Advice for Investors

Schiff is certainly quite passionate about the future of gold, and he has stated multiple times that buying now couldn’t be a better idea. He’s also telling investors who already have gold to avoid the temptation to sell it off. Schiff believes that once speculative sellers are through with gold, the market is going to see an immense turn.

While gold may be the best thing going in Schiff’s eyes, many other analysts believe that just because the metal might see some short-term gains, it will ultimately remain a poor investment in the long-term. There are plenty of factors that play into this situation, however, and to accurately predict how quickly gold will either rise or fall can be immensely difficult.

Whether you believe Schiff or the critics, there’s no getting around the fact that all investors will be watching as gold continues on its path.


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