Schiff, who launched a gold-mining mutual fund last month in the teeth of a two-year decline in prices of the precious metal, told Yahoo Breakout he is sticking with his bullish position even it is a lonely one.

“I think everything supports the fact this is yet another buying opportunity in a string of buying opportunities,” he said. “In fact, I think this may be the best buying opportunity yet.

Editor’s Note: Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now(Shocking)

Schiff said he was undeterred by the fact that, according to Yahoo Breakout, other fund managers cut their net long positions in gold by 27 percent last week alone.

“I welcome the fact a lot of fair-weather gold bulls have abandoned their positions,” he said. “Physical gold is disappearing and ultimately the short sellers have to be able to deliver the commodity they are selling short, and they’re not going to be able to do that.”

Gold prices have declined about 35 percent in the past two years, and prominent hedge fund managers such as George Soros have sold their positions.

“It’s going to be a spectacular rise when these forces try to work themselves back out,” Schiff predicted. “Historically, the smart move has been to buy bear markets, not to sell them.”

CNBC lent support to a more bullish case for gold, reporting that as investors avoid emerging market stocks and currencies, “gold is quietly gaining traction.” Gold prices approached the $1,400 per ounce level Friday.

Strategists contacted by CNBC said the precious metal may have formed a solid base, and that moves by the Federal Reserve to taper its bond-buying program may lend gold support.

"If tapering does occur in September, it will be more 'buy the rumor, sell the fact.' Certainly the entire market is expecting it already. We'll see gold prices continue to rise quite strongly over the next couple of months," predicted Andrew Su, CEO of Compass Global Markets.

Bloomberg reported the decline in gold prices has wiped out $56 billion in value in 2013, which has created more demand for the metal in China and India, the two biggest consumers.

Bank of America is predicting a fourth-quarter average of $1,495 per ounce, and JPMorgan forecasts rising averages in every quarter through the end of 2014, Bloomberg said.

At New York's Comex on Friday, gold for December delivery rose $25, or 1.8 percent, to end at $1,395.80 an ounce, the highest price since June.

Editor’s Note: Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now(Shocking)