Economist and gold bug Peter Schiff has explained why the price of gold is rising, warning that bitcoin is a “gigantic bubble.” He expects gold to be in “double digits” by next year. Meanwhile, he said that bitcoin is in a bear market and the price of the cryptocurrency “is going much lower than this.”
Peter Schiff Explains Why Gold's Price Is Rising — Warns Bitcoin Is a 'Gigantic Bubble'
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Peter Schiff on Gold and Bitcoin
Economist and gold advocate Peter Schiff has offered insights into the rising price of gold and cautioned against investing in bitcoin and spot bitcoin exchange-traded funds (ETFs).
“ Gold is rising because the dollar, the euro, the yen — fiat currencies are losing value. Inflation is real. It’s here to stay. It’s not going anywhere near the Fed’s 2% target. We’re headed in the wrong direction,” he described in an interview with Fox Business on Monday. Schiff added:
We’ll probably be in double digits by next year, and eventually, the first digit isn’t going to be one.
“Central banks are out in front of this. They’re the main buyers,” he emphasized.
The gold bug proceeded to comment on investors selling gold to buy bitcoin or spot bitcoin ETFs. “A lot of Americans have been foolishly selling their gold to buy these bitcoin ETFs,” he said. “ Bitcoin is not going up. In fact, bitcoin peaked two and a half years ago at about 37 ounces of gold. As we speak now it’s worth less than 27 ounces. That’s a 27% decline in two and a half years. This is a bear market. Bitcoin is going much lower than this.”
When presented with the fact that bitcoin has significantly outperformed gold, Schiff exclaimed:
Bitcoin’s outperformed everything, so don’t compare it to gold. It’s outperformed stocks, real estate, bonds, collectibles.
He quickly clarified: “That’s because it’s a gigantic bubble.”
Schiff consistently criticizes bitcoin and spot bitcoin ETFs. In February, he also cautioned against a potential bitcoin ETF bubble, predicting a bitcoin price crash coinciding with a surge in gold. He also warned of a possible bitcoin pump-and-dump scenario, anticipating a significant downturn in BTC. Veteran investor Peter Brandt recently challenged Schiff’s statement about gold outperforming bitcoin, stating: “Come on Peter, put things in a broader perspective. I like gold too — I am long a bunch — but which racehorse has done better since BTC’s inception?
What do you think about Peter Schiff’s statements about gold and bitcoin? Let us know in the comments section below.
