You’d be hard-pressed to find a more vocal critic of the Federal Reserve than Peter Schiff, CEO of Europacific Capital.And Fed critics tend to be gold bulls.
So, we weren’t surprised by some of the comments Schiff made during an interview with King World News.
There is a lot of uncertainty out there, and I’m surprised that gold is not rising. Ultimately, all of the problems are bullish for gold. In fact, I am on the road in Brazil and while watching Bloomberg today a reporter said, ‘People are discovering that gold has no intrinsic value.’ That kind of talk makes me very bullish.
What’s so appealing about gold is that it does have intrinsic value. It’s paper money, it’s the dollar and the euro that ultimately have no intrinsic value. They are just pieces of paper with numbers written on them. The government can put any number they want on that paper, but gold is real. The government can’t create gold out of thin air, it has to be mined. The big picture is all bullish for gold.”
You can say what you want about Schiff and his thoughts on gold. But his take on gold equities is compelling.
“A lot of these gold stocks are trading at levels they were trading at in 2003. You are talking about nine years ago, when gold was at $400. So there is tremendous value here. Right now you just have massive capitulation on the part of people who have been holding on to these stocks. They are throwing in the towel. But we will have a huge rally at some point, and you’ve got to be positioned for it.
I think these stocks can go up more than 100% in one year, especially if gold rallies from here. What if gold goes on and makes another high above $2,000 an ounce? What if it gets to $2,500 an ounce? These stocks have a long way to go just to get back to when gold was $1,000 an ounce.”