Monday, December 17, 2012

Peter Schiff on Gold Prices

Despite the downwards movement of the price of gold recently, the Euro Pacific Capital CEO Peter Schiff says that this will not last for long. On Yahoo, he reports – gold prices will jump over 5000 dollars.
In his words, decisions still not made are now of great importance. He asks - how much time will the world need to realize the fact that we have been conning interest rates? 
Schiff describes the increasing debt of the US and the massive easing of the Federal Reserve as ‘bullish’ towards the precious metal. When the world comes to the conclusion that we ask for money in order to live a life beyond the means possible, a much more significant dollar drop will come to pass. In order for interest rates to remain low, more money will have to be printed by the Fed and thus, the price of gold will explode.

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