A myriad of global factors seem to be converging that are making safe haven assets increasingly attractive. One of Bitcoin’s most prominent naysayers believes efforts to stimulate economies in the face of growing uncertainty will play in the favour of gold.
Peter Schiff, the CEO of Euro Pacific Capital, says that gold will soon hit $5,000 per ounce. This would represent a more than 3x gain from its current price point.
Schiff: Fed Policy will Drive Gold to $5,000
The prolific anti-Bitcoiner and gold bug Peter Schiff believes the current global macro economic climate will drive greater numbers of investors than ever before to consider gold. Schiff claims that Federal Reserve policy will make the precious metal increasingly attractive in the future.
In a post to Twitter earlier today, Schiff made the case that investors started to lose interest in gold in 2011. Federal Reserve promises to “normalize interest rates and shrink its balance sheet” apparently were convincing enough to reduce demand for the safe haven asset.
The reason #gold stopped rising in 2011 is that everyone believed the Fed when it said it could normalize interest rates and shrink its balance sheet. This time no one will believe that lie, even if the Fed is bold enough to tell it again. My 5K gold call will soon be a reality.
— Peter Schiff (@PeterSchiff) March 11, 2020
Recently, demand for gold has been rising again. Uncertainty in global markets following the outbreak of the coronavirus appears to have made the precious metal attractive once again – particularly as central banks scramble to reduce the impact of the epidemic on global markets.
As NewsBTC and others have reported previously, Donald Trump has become obsessed with increasingly lower interest rates to stimulate economic growth of late. A direct attack on savers, Schiff and other proponents of hard monetary assets like gold or Bitcoin argue that such policies will drive more investors away from fiat currencies, with their monetary policy dictated by central banks, towards sounder forms of money.
Why Does Schiff Still Not Like Bitcoin?
When he’s not bleating about Bitcoin, Peter Schiff sometimes makes a lot of sense. He is, after all, a staunch proponent of hard monetary assets in favour of the current fiat monetary experiment.
With a vested interest in the success of precious metals, it’s hardly surprising that Schiff is so opposed to an asset like Bitcoin. Being the hardest form of money ever conceived, it is well positioned to eventually steal gold’s thunder.
Having been on his radar for a number of years now, Schiff has had plenty of time to take up a position in Bitcoin. The fact that he claims to have not done suggests that he either really doesn’t understand what makes gold valuable, or does and has a real fear that Bitcoin will eventually usurp gold as the planet’s dominant store of value asset.
This latter scenario would likely mean that Schiff does indeed have a Bitcoin allocation in his portfolio, outside of the one he claims to have lost through his own lack of understanding of the protocol of course.
Featured Image from Shutterstock.