Tags: Schiff | gold | 5000 | Fed

Peter Schiff: Gold Headed for $5,000, Thanks to Fed Easing

By    |   Wednesday, 21 Nov 2012 10:41 AM

The Federal Reserve’s massive, five-year-old easing program will propel gold all the way to $5,000 an ounce, says Peter Schiff, CEO of Euro Pacific Capital.

That’s almost three times the $1,727.50 spot price from late Tuesday.

“It’s hard to put a timetable on it, but I do believe that gold will ultimately eclipse $5,000,” Schiff tells CNBC. “I don’t know how high it will go, because there’s no ceiling on how low currencies can go.”

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The dollar and gold often move in opposite directions.

Also, “There’s no limit to how much money the central banks will print,” Schiff says. Federal Reserve Chairman Ben Bernanke has promised to keep easing policy until the economy gets better and jobs are created, Schiff notes.

But it won’t succeed, he says. “Bernanke’s going to print money indefinitely, so there’s no bottom on the dollar and no ceiling for the price of gold.”

Schiff isn’t the only gold bull. A Bloomberg survey of 16 analysts produced a median forecast for an increase by gold in every quarter next year, with its price averaging $1,925 in the final three months.

Hedge fund moguls George Soros and John Paulson are big into gold. Soros Fund Management lifted its gold holdings by 49 percent in the third quarter. And Paulson & Co. owns $3.66 billion of SPDR Gold Trust, which holds physical gold.

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The Federal Reserve’s massive, five-year-old easing program will propel gold all the way to $5,000 an ounce, says Peter Schiff, CEO of Euro Pacific Capital.
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Wednesday, 21 Nov 2012 10:41 AM
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