Peter Schiff: Don’t Wait for $3,000 to Buy Gold

Last night, Peter took to YouTube for a special livestream on gold’s recent price action and a few headlines from early this week. He argues the mainstream media and retail investors seem to have lost sight of the metal’s explosive potential. While everyone else is busy hyping Bitcoin, the smart money is piling into gold, setting the stage for what he calls a major short squeeze and a bullish turnaround.

Schiff begins by highlighting the stark media oversight of gold’s all-time highs:

Despite the repeated new highs in the price of gold, nobody is talking about it, I mean, other than me. I watched CNBC pretty much all day just waiting for somebody to mention gold and nobody did. Now, maybe somebody mentioned it after I stopped watching, but they didn’t mention gold. They certainly didn’t mention that it was at a record high. All they mentioned was Bitcoin. They mentioned it repeatedly throughout the day. They had multiple segments that featured guests that talked about Bitcoin and they never once acknowledged what was happening in gold. In fact, when it comes to retail investors, not only are they not participating, they’re selling.

It seems retail investors are hoping for a dramatic pullback, but Peter warns that this is unlikely. Other assets that track gold’s price are also a bargain right now:

I doubt we’re going to get another one that big for a while after Trump won and there was a big rally in the dollar and there was a sell-off in gold. It didn’t even make a full correction of 10%, but the sentiment is so negative that gold stocks went into a full-fledged bear market. They went down 25%, 30%. That’s how afraid people were. They dumped their gold stocks. Even though gold is at a record high in a big bull market, gold stocks are still in a bear market. That’s also unheard of. 

Peter is confident that the tide will soon turn. Institutional buying is already at work, and unusual activity in the commodities market may indicate large buyers are in the market for the yellow metal:

The public is going to wake up and start participating. You know, if the public is not buying gold, you may wonder, how is it that the price keeps going up? Somebody’s got to be buying. In fact, somebody has to offset all of the selling, and that is the institutions or the smart money, the big buyers, and the central banks. Even central banks are buying up gold. They want to get rid of their dollars. They want to divest and move out of the dollar, and so the best alternative to the dollar is gold, and that’s what they’re buying.

He also warns that significant market moves are on the horizon, with the possibility of short sellers being dramatically squeezed:

So these are big investors who are intending to take delivery of their gold. They don’t want to gamble with it anymore. They actually want the physical metal. Now this could be the beginning of a major short squeeze in gold as, you know, they have to replenish those stocks, and they may run out of gold, and it may be impossible for some of the shorts to deliver, and now they have to go into the market to buy the gold that they sold that they never had. So we can start to see some real fireworks in the price of gold.

Peter wraps up by discussing the Trump administration’s posturing around a strategic government Bitcoin reserve. Now that we’re two weeks into the administration and the idea hasn’t made any legislative progress, Peter is skeptical it will go anywhere:

Now, some people think, well, Donald Trump is going to establish it by executive order. He’s not. If he was going to do it, he would have already done that. Look at all the executive orders he issued. He didn’t issue anything on a strategic Bitcoin reserve. Now, what he did do, I think, to placate his donors and supporters, he said that they are going to set up a working group to study the feasibility of a crypto reserve. He didn’t even call it a Bitcoin reserve. He said a crypto reserve, which could mean anything. 

For Peter’s latest on the Trump tariffs and their fallout, check out Sunday’s episode of the Peter Schiff Show.