The worst is not over, according to Euro Pacific Capital's Peter Schiff, who predicts the Dow will fall another 90% from current levels when measured against gold.
Schiff believes gold is currently "climbing a wall of worry" but will eventually become as hot as tech stocks in 1999 and start moving up $100 per day - eventually hitting $5000 per ounce sometime "in the next couple of years,".
Peter predicts the Dow and gold will trade on a one-to-one ratio vs. the current level of around 9.7-to-1. His forecast is based on a view the U.S. dollar will eventually collapse under the weight of our massive deficit and reckless policies of the Obama administration, which he compares to the massive spending programs of the 1960s - which paved the way for gold's ascent in the 1970s.
2 comments:
Well of course, just about anyone would be a welcome relief from hoary,entrenched (and corrupt I think) Chris Dodd as the senator from CT.
Peter Schiff would certainly liven things up and add some much needed counterpoise to the feeble thinking democrats (I'm assume Schiff is running as a republician, truth is... I don't pay that party attention anymore... they are so tainted and out of touch with reality).
About Gold, who knows.
Currencies crumbling can be like
a bank run. Panic sets in and there is no telling what will happen.
If the USD suffers enough lost of confidence then I think yes, it could be as some gold bug sites envision; a critical mass is reached and there is a sudden rush out of Dollars into physical Gold. BIGTIME rush...as in Peter Schiff's $5k bigtime.
But that's speculation. I don't approach Gold as such, rather it's a sure store of value.
If it appreciates wildly, nice.
The important thing is that it is unlikely to suddenly lose it's value.
Can that be said of the U.S. Dollar?
Gold is good in both inflation and deflation.
If inflation is in play then one should buy gold & commodities.
If deflation is in play then one should buy treasuries & gold.
Schiff is buying commodities/commodity stocks, so he thinks inflation is in play.
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