Gold has jumped 14 percent so far this year, hitting a six-month high Monday, and Peter Schiff, CEO of Euro Pacific Capital, thinks the rally has legs.

"It's just getting started," he told Yahoo. The next stop for gold is $1,420 an ounce and if it breaks through there, possibly $1,500, Schiff predicted. April gold futures traded at $1,362.80 on the Comex early Tuesday.

Many market participants attribute part of gold's strength to the turmoil in Ukraine, but Schiff disagrees. "I think it's got nothing to do with Crimea. Gold is not going up any faster since the Russians moved into Crimea than before."

Editor’s Note: 18.79% Annual Returns . . . for Life?

So what's happening?

"The real reason gold is going up is because of inflation," he noted. Schiff thinks the official 1.6 percent increase in consumer prices during the year through January understates true inflation.

And he doesn't believe the Federal Reserve will continue to taper its bond purchases. "The Fed has no way out of QE [quantitative easing]; the U.S. economy is slipping into back into recession," Schiff said.

"The Fed is going to ramp up QE, not continue to taper. All of that is very bullish for gold."

Not everyone is bullish, though. "There are a few things in the market that make us believe it is not a sustained rally from here onwards," Michael Widmer, a metals strategist at Bank of America Merrill Lynch, told CNBC.

One of those things is worry of deflation in the eurozone, Widmer said. Year-on-year inflation for the 18-nation group dipped to 0.7 percent in February from 0.8 percent in January.

Editor’s Note: 18.79% Annual Returns . . . for Life?

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