Investment guru Peter Schiff advises that savvy investors should be gold right now because the precious metal’s price will skyrocket once the economy finally collapses.
“I think people are just completely clueless with respect to what's actually going on in the world. They don't understand the U.S. economy; they don't understand the Fed. But they're about to get a rude awakening and the smart money is buying gold,” he recently told RT, a Russian international television network and website funded by the Russian government.
“Gold and silver are both going way up in the long run. And the long run may be here much sooner than people think," the Euro Pacific Capital CEO said.
“All of this stuff is coming to a head and it all depends on when it blows. And when it does, gold's going ballistic."
Schiff blamed all the problems on the U.S. central bank, which he said have been manipulating bond prices and interest rates, for years.
“I think the air is coming out of that bubble,” he said. “And as this U.S. stock market implodes, as more and more people realize that a massive recession that is even bigger than what we now call the Great Recession of 2008 is actually around the corner ... they're going to be buying gold and they're going to be buying it in a big way," he said.
However, Schiff couldn't predict an exact price. “I think it's going to be higher. It could be a lot higher. I mean, it could be $1,000 higher. I don't know. It all depends on how this thing blows up. I think it's going to blow up in a big way. It's a huge credit bubble. We're going to see waves of foreclosures and insolvencies and bankruptcies," he said.
Schiff isn't alone in believing that gold is poised to soar.
John LaForge, Wells Fargo Investment Institute's head of real asset strategy, reportedly sees gold regaining its luster and delivering profits for investors. "When your stock corrections are in the 10 to 15 percent level, which is kind of what we're in now, what we often find is that investors go out and search for some kind of insurance," he recently told CNBC.
"They typically will buy gold — even on a bounce in stocks," he said.
To be sure, gold has a wide array of fans among highly respected investors, such as billionaire hedge-fund manager Ray Dalio.
Dalio’s Bridgewater Associates maintained its holdings in SPDR Gold Shares, the largest bullion-backed ETF, at 3.9 million shares, and its stake in iShares Gold Trust, the second-largest, at 11.3 million shares in the third quarter, according to a recent regulatory filing.
The hedge fund also added to its holdings in Barrick Gold Corp., Franco-Nevada Corp., Newmont Mining Corp. and Kinross Gold Corp. in the third quarter, Bloomberg reported.
© 2025 Newsmax Finance. All rights reserved.