Peter Schiff: Mario Draghi’s Commentary Means Gold Prices Will Retest 2011 Highs (GLD, IAU, PHYS, DZZ, SLV)

Jared Cummans: European Central Bank president Mario Draghi caused quite a commotion last week when he stated that the ECB would do anything in its power to save the euro. Stocks soared and investors saw a bit of confidence return to the market. That was quickly followed by healthy GDP figures from the U.S., allowing a number of assets to climb even higher. Among the best performers was gold, as investors felt the commodity was poised for gains given the commentary from Draghi as well as the wide assumption that Bernanke and the Fed are ready to print more money [see alsoThree Reasons Why Gold Is Overvalued].

One of the most prolific names talking about gold was investing guru Peter Schiff. Schiff, of EuroPacific Capital, has been known for his relatively bold predictions concerning the precious metal, including his firm belief that it is headed towards $5,000 per ounce. Now, Schiff has stated that Draghi’s most recent comments paint a bullish picture for gold, as it will mean that the ECB will be forced to print more money, devaluing the euro versus gold.

“If gold breaks above the $1,650 level with conviction, then I think we are looking at retest of the all-time highs from late summer of 2011″ said Schiff, “I think, ultimately, we take out the highs and we go a lot higher. At some point, if I’m right, these gold stocks are going to take off because they have a lot of catching up to do” [see also Why Jim Rogers Thinks Gold Will Drop 20%].

 Read full article: http://etfdailynews.com/2012/08/02/peter-schiff-mario-draghis-commentary-means-gold-prices-will-retest-2011-highs-gld-iau-phys-dzz-slv/