Tags: Schiff | gold | 5000 | Fed

Schiff: Gold Will Soar to $5,000 Amid Fed Easing

By    |   Wednesday, 16 April 2014 11:20 AM

The Federal Reserve's easing program, which has pushed its balance sheet above $4 trillion and short-term interest rates to record lows, will also push gold to $5,000 an ounce, says Peter Schiff, CEO of Euro Pacific Capital.

"Central banks are creating too much money. There's too much inflation, interest rates are too low. So I want to store my purchasing power in something that central banks can't print," he tells CNBC.

"I think we're headed much higher [for gold] because they are not going to stop the presses. They are going to run them into overdrive."

Editor's Note:
Secret ‘250% Calendar’ Exposed — Free Video


While the Fed has begun to taper its bond purchases, Schiff expects the central bank to reverse course. If it ends quantitative easing, a recession and bear markets for stocks and real estate will ensue, he said. And how will the Fed respond?

"The only thing it can do is print more money and restart the presses and do more QE," he answered.

"Inflation is the expansion of the money supply. Quantitative easing is a euphemism for inflation. All the central banks are inflating, that's what they're doing," Schiff notes. "The gold market doesn't care about the CPI [referring to a standardized inflation measure], it cares about real inflation. This is all government propaganda trying to convince us that there's not inflation."

Gold prices steadied on Wednesday after falling nearly 2 percent Tuesday.  Spot gold was at $1,302.20 an ounce at 0908 GMT, little changed from $1,302.04 late on Tuesday. U.S. gold futures for June delivery were up $2.40 an ounce at $1,302.70, Reuters reported.

Meanwhile, some gold experts say a slide in Chinese demand will hurt the metal. After rising every year since 2002, the World Gold Council predicts China's gold purchases will be unchanged this year.

"The situation in China is certainly a headwind," Vedant Mimani, portfolio manager of the Atyant Capital Global Opportunities Fund, tells The Wall Street Journal. "This demand that's been there for 11 years has become questionable."

Editor's Note: Secret ‘250% Calendar’ Exposed — Free Video

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The Federal Reserve's easing program, which has pushed its balance sheet above $4 trillion and short-term interest rates to record lows, will also push gold to $5,000 an ounce, says Peter Schiff, CEO of Euro Pacific Capital.
Schiff, gold, 5000, Fed
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2014-20-16
Wednesday, 16 April 2014 11:20 AM
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