The price of precious metals, including gold and silver, has been falling lately amid growing tensions between the United States and China, and the recent stock market rally.
RT’s Boom Bust talked to CEO of Euro Pacific Capital Peter Schiff about the optimism driving the market surge, and the future of metals market.
Gold got caught up in the rally of the global stock market, Schiff said, warning: “Remember, the only reason the US stock market is going up is because of the Fed. We had bad economic news, now we have riots…which is making the bad economy worse.”
According to the veteran stockbroker, the worse the US economy gets, the more money the Federal Reserve prints.
“When the Fed is creating inflation, you’d be better off buying gold than the S&P 500.” He explained that as the regulator raises rates to fight inflation, “they collapse the bubble economy.”
Talking about silver, which has recently hit all-time record lows, he said that it has “certainly bottomed out, not only in dollar terms, but in terms of gold.” However, he added: “I think the silver price is going to go much higher. It could take a little while before it hits a record high. But it’s going to be a general commodity bull market that’s going to include a lot of commodities and precious metals.”
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