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Peter Schiff Explains Why We Could See $5,000 Gold (Video)

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Could we be heading toward $5,000 gold?

Last week, there was a big sell-off in the bond market. Yields on the 10-year Treasury soared 11 basis points in one day. Global stock markets sold off the following morning and US stock markets followed suit. This week, things really got really ugly on Wall Street. The Dow dropped over 1,300 points in two days. In a video for SchiffGold, Peter Schiff said stock market investors “finally took notice of the carnage that was going on in the bond market.”

On Thursday, the price of gold popped, rising nearly 3%. But despite all of the action this week, most people in the mainstream remain complacent. The narrative is that this is a normal bull market correction. Peter said nothing could be further from the truth.

The economy is even a bigger bubble than the stock market.”

President Trump was out talking up the economy in the midst of the Wall Street mayhem. He claims the economy was near collapse when he took office and he’s fixed everything. Peter said Trump was half right. The economy was a mess when he took office. And it still is.

The only thing Donald Trump has done since being elected president is to blow more air into the bubble. So, we’re still going to have the crash he was talking about, only now it’s going to happen from a higher level and it’s going to be that much more spectacular. This is going to be a sequel to 2008, and like all sequels, it’s going to be bad.”

In 2008, we had a dollar rally and a sell-off in gold – at least initially. Peter said this time around, we’ll see an opposite ending.

Gold is going to take off and the dollar is going to collapse, and the inflationary recession that is going to follow the bursting of this bubble is going to be far more disruptive and painful for the average American.”

But here’s some good news. This crisis is going to be far more profitable for the people who own gold and for investors who buy more gold now.

When the financial crisis hit in 2008, the price of gold fell. Why? Because the yellow metal had already rallied to a record high of $1,000 in the summer of ’08. Investors were already buying gold. The rally began in 2001 from below $300. When the crisis hit, everybody had lots of profits in gold and nobody was short. Fast-forward to today. Nobody has been buying gold. The yellow metal is about 40% below its $1,900 peak. Hedge funds are actually short gold for the first time since 2001. When the crisis hits, nobody will be sitting on big gold profits, investors will need to cover their shorts and gold is under-owned.

Then there’s the dollar. In the summer of ’08, the greenback was at an all-time low. Everybody was short the dollar. Today, the greenback is strong and investors are long the dollar.

As Peter pointed out, one of the reasons the dollar was so weak in 2008 was because we had big budget deficits and big trade deficits.

People were smart enough to realize that was a problem. Well, today we have even bigger budget deficits and even bigger trade deficits and nobody thinks it’s a problem at all.”

Peter said when you look at all of the dynamics, we are primed for a collapse in the dollar.

When the crisis ensues, it’s actually going to be a dollar crisis, not just a financial crisis — a dollar crisis.”

The bottom line is the sale we’ve been having in gold for years is about to come to an end.

If you’ve been thinking about buying more gold or more silver, stop thinking and start buying. If you don’t own any gold or silver, what are you waiting for? You’ve got to buy it because the prices are going to start to go up a lot faster. And once it really goes, it’s going to leave a lot of people behind.”

How high can gold go? Peter said $5,000 or $10,000 is possible — even more if hyperinflation takes hold. And that’s not out of the realm of possibility.

Make sure you watch the video. Peter also explains why bitcoin and other cryptocurrencies are not a safe haven.

Bitcoin buy gold from SchiffGold

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