Gold has jumped 9 percent so far this year, and the party is just getting started, says Peter Schiff, CEO of Euro Pacific Capital.
He thinks a weak stock market will force the Federal Reserve into a fourth round of quantitative easing (QE), which will push the dollar down. And when that happens, it's Katie, bar the door.
"What's going to be most bullish for gold is when the Fed announces QE4," he told
Yahoo. "That's going to be a big game changer. It's going to catch everybody by surprise."
Schiff believes gold will surpass its September 2011 high of $1,923 by early next year. That would represent a 50 percent surge from the present level.
The fact that so many countries are cutting interest rates and thus devaluing their currencies will boost the precious metal, Schiff said. "I think it's breaking out. Now is a good time to buy," he noted.
"I think gold is going to go up in all currencies — it is rising faster in euros and some other currencies than it is in dollars but it's still rising in U.S. dollars. . . . In fact, this year I believe gold prices are going to hit all-time record highs in just about every major currency except the U.S. dollar."
However, he noted, "If gold is this strong while the dollar is strong, imagine how much stronger gold will be when the dollar resumes its decline."
Other experts agree that the global currency war is good for gold. The dollar has soared to multi-year highs against a range of currencies in recent weeks, hitting an 11-year peak against the euro Monday.
"There's competitive currency devaluation occurring," Michael Tiedemann, who oversees $9.5 billion as chief investment officer of Tiedemann Wealth Management, told
The Wall Street Journal. "Gold is your natural hedge against that."
To be sure, not everyone is bullish on the precious metal.
"The most important point for gold is that speculative demand will likely stay tepid in 2015, given that a firmer dollar, higher interest-rate environment and a rosier U.S. economy will depress safe-haven demand," Barnabas Gan, an economist at OCBC, told
Bloomberg.
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