Peter Schiff still sees gold soaring to $5,000, Fed launching QE4

A few years ago, Peter Schiff, CEO of Euro Pacific Capital, predicted that gold would skyrocket to around $5,000 per ounce. He cited a weak economy, quantitative easing and price inflation as reasons for this immense surge. Everyone laughed, but is this a case of “he who laughs first, laughs last”?

Unfortunately, the yellow metal still has yet to reach that point, but Schiff is still maintaining his prognostication for the precious metal, something that is often scoffed at by financial commentators.

Speaking in an interview with MarketWatch, Schiff reiterated his stance that gold will hit $5,000. In fact, according to Schiff, there is no ceiling for how high gold prices can climb, so whether or not it can actually surpass the $5,000 mark remains to be seen.

Schiff told the business news outlet that the U.S. saw weak economic data in the first quarter, and Schiff believes the second quarter will be another tepid economic showing.

Moreover, the Federal Reserve is simply “posturing” when it comes to interest rates because Schiff think it won’t raise interest rates. It’s still up in the air if the U.S. central bank will wait until September or another year to boost rates.

What seems to be the most contentious stance Schiff has is in regards to quantitative easing. Schiff noted that there will be another round of QE in order to offset the ramifications of the previous one, another prediction he’s said on numerous occasions.

“We’ll always have to do [quantitative easing] to offset the damage from the previous QE,” said Schiff. “It’s like trying to put out a fire with gasoline. That’s all the Fed has—gasoline. “And everyone expects the fire to go out. It can’t go out.”

Simply put: as an investor you have to be long gold because then you’ll have a “huge payday.”

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