Tags: Schiff | perfect | storm | gold

Peter Schiff: ‘Perfect Storm’ Building for Gold

Friday, 21 Dec 2012 08:15 AM

By Dan Weil

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Gold fell to an almost four-month low Thursday, but Euro Pacific Capital CEO Peter Schiff thinks the precious metal will come back soon enough — with a vengeance.

“You’ve got a perfect storm coming in the future,” he told CNBC. “Miners aren’t going to be able to produce enough of the stuff, because it costs so much to get it out of the ground.”

But thanks to global central bank easing, “the supply of paper money is going to go through the roof just at the time that the supply of gold and silver is shrinking,” Schiff said.

Editor's Note: Get David Skarica's Gold Stock Adviser — Click Here Now!

The money-printing means inflation, which means demand for gold, he noted. “You’re going to have the whole world waking up to this inflationary nightmare. [So] everyone will be rushing to buy gold and silver with all their dollars and all their euros, and there’s not going to be much to buy.”

Spot gold traded at $1,647.40 late Thursday.

To be sure, Barron’s columnist Brendan Conway says inflation isn’t necessarily the most important indicator for the precious metal.

"Gold often is considered an inflation hedge, but that only pans out in a severe crisis,” he wrote. “Gold's correlation with inflation was just 1 percent in the 25-year period of 1986 to 2011."

Quiet buying from emerging-market central banks may be the key factor that will support gold, Conway says. “China is just one country that could ramp up its gold purchases.”

Editor's Note: Get David Skarica's Gold Stock Adviser — Click Here Now!

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web

Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 

You May Also Like
Around the Web

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved