Renowned gold trader Peter Schiff stated that the yellow metal might hit $26,000 or even $100,000 an ounce if it could increase from $20 to $2,600. He discussed his opinions on world economic matters, such as the depreciation of the US dollar, China’s resilience, and the effect of US foreign policy on public debt.
Schiff foresaw a substantial increase in gold prices as the dollar continually dropped in value and warned of possible inflation amid higher geopolitical uncertainty
“Our troops are dispersed worldwide, but we lack the funds to provide them without taking out loans. To keep things this way, Schiff said, “I don’t think the world is going to pay an ever-increasing tribute to the United States.” In his analysis of how conflict affects the economy” . Schiff highlighted the dangers of inflation:
According to the gold advocate, conflict frequently destroys productive capacity, which lowers consumer goods while raising the money supply. The popular metal trader predicted gold’s value could soar as the dollar weakens due to ongoing money printing. He is bullish about gold’s future, predicting a sharp increase in price over the next few decades as the currency weakens. As the economist put it:
“Gold can rise from $2,600 to $26,000 or even $100,000 per ounce if it can move from $20 to $2,600.” Schiff also said the yellow metal is “set to have its best year since 1979.” This year, gold has gained over $540, making it the “largest dollar gain in history.”
However, he said that “investors haven’t added mining stocks to their screens or noticed the bull market.”
The demand for gold-backed exchange-traded funds (ETFs), which allow investors to buy shares in gold rather than bullion itself, is strong, so the negative risk to gold may be limited. Net ETF inflows have climbed dramatically during the summer, and this is frequently seen as a strong signal of future demand
However recent price action shows Gold is being further pressured by the decreased likelihood that the Federal Reserve (Fed) will lower interest rates by another 50 basis points at its upcoming meeting in November. The odds that the Fed will only reduce by 25 basis points (0.25%) or possibly not at all is growing, which is bad news for gold as it implies that the opportunity cost of keeping the non-interest-paying asset will continue to be greater than anticipated.