Peter Schiff thinks gold will outperform fiat currencies, including the US dollar going forward. 

Peter Schiff is the CEO and chief global strategist of Euro Pacific Capital Inc., a broker-dealer based in Dorado, Puerto Rico.

Peter Schiff is a long time perma gold bull who has been correctly forecasting the trajectory of Fed monetary policy for over a decade.

Peter Schiff is a long time perma gold bull who has been correctly forecasting the trajectory of Fed monetary policy for over a decade

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Peter Schiff thinks gold will outperform fiat currencies; he thinks it will be the biggest bull market since the 1970s

The Fed, the world central bank by default, will be unable to keep a lid on inflation, which is why Peter Schiff thinks gold will outperform fiat currencies. 

“The reason we saw a peak rally is that the Fed was able to convince the world that it could do the impossible,” said Peter Schiff. 

“That it (The Fed) could normalize interest rates after keeping them at zero for many years and that it could shrink its balance sheet back down to normal after blowing it up to $4.5 trillion” he added.

Lack of trust in central bank monetary policy is why Peter Schiff thinks gold will outperform fiat currencies

“I knew that was impossible back then, that the Fed couldn’t do what it claimed it was going to do” said Peter Schiff. 

“It was all bark and no bite, it was a big bluff” he said.

“The Fed bluffed about raising rates for a long time until it finally nudged them up from 0 to 25 basis points, it took a long time before they could finally shrink the balance sheet” said Peter Schiff. 

I knew that was impossible back then, that the Fed couldn’t do what it claimed it was going to do

PETER SCHIFF

The Fed would lose control of newly created US dollars, in order to purchase assets to keep prices propped up, known as quantitative easing QE, which is the main reason why Peter Schiff thinks gold will outperform fiat currencies.

“I predicted that QE4 would be bigger than QE1, QE2, QE3 combined. I predicted Fed would be back in zero which is where we are” said Peter Schiff. The Fed reversed the call on rates in the fall of 2018 when the market imploded because rates had been moved up to 2.5%,” he added.

Peter Schiff thinks gold will outperform fiat currencies because the Fed is jeopardizing the US dollar to keep the multiple asset bubbles in real estate, bonds and stocks inflated

“The Fed created a phony recovery by leveraging up everyone with debt, they can’t remove the debt” he said. You can’t prop the economy up and then somehow remove the prop without causing a collapse explained Peter Schiff.

“It is impossible to get everyone leveraged up and raise rates, they can’t afford it, the economy would implode” he said. “So, the Fed returned to cut rates and start QE. They pretended that it was not QE, then the Repo market blew up and the Fed had to step in print money and buy paper to keep interest rates artificially suppressed” said Peter Schiff. 

“gold is about to explode higher and US dollar is about to get killed against all other fiat currencies” – Peter Schiff

QE infinity which is being implemented by the major central banks is why Peter Schiff thinks gold will outperform fiat currencies

“When COVID came the Fed went straight to zero interest rates and QE4 is already bigger than QE1, QE2 and QE3 combined,” said Peter Schiff. “This is QE to infinity, the Fed is saying we are not even thinking about raising interest rates,” he said. So, there is no way that anyone in the world is going to believe the Fed even if it tries to bluff,” he added.

Peter Schiff thinks that the market consensus view is that the Fed will eventually raise rates and shrink its ballooning balance sheet. “That is what saved the US dollar and cause a short-term pop on gold,” said Peter Schiff. 

Peter Schiff thinks gold will outperform fiat currencies, including the US dollar going forward

“Gold is about to explode higher and US dollar is about to get killed against all other fiat currencies” he said. 

“In the 80s bull market stopped with 800 US dollar Oz gold interest rates were allowed to go to 20%, they can’t even go to 2% now. We have already proved that 2% is too high, how are they going to go to 20%,” he added. 

everyone is going to have an allocation to gold in their portfolios, 5% ten 10%” – Peter Schiff

Central banks will surrender to inflation, which is why Peter Schiff thinks gold will outperform fiat currencies 

“So, the Fed has to surrender to inflation, and it’s the US dollar that gets knocked out to gold” said Peter Schiff. 

“The US dollar is what gets sacrificed to prop the real estate bubble, bond bubble stock bubble” he said.

“The print attitude has never been more on display like now. Since COVID 19 because the US government is saying nobody has to work, nobody has to go to offices, earn a pay-check, the Fed prints so households can consume staying at home being unproductive” said Peter Schiff. 

Peter Schiff. Points out that the US has a 4 trillion US dollar deficit. Moreover, the government is cutting taxes. “So, the government has decided that it is going to fund itself with inflation,” he said. “The Federal government is only collecting 40 cents out of every dollar that it spends. So, 60 cents out of every dollar spent is coming from the Fed. So, 50 percent more money is being printed and spent rather than taxed and spent” said Peter Schiff. 

Peter Schiff thinks gold will outperform fiat currencies and that the world will go back to the gold standard

Peter Schiff sees a US dollar crash by the end of 2020 with precious metals outperforming

“The world is going to reject the US dollar standard and go back to the gold standard. Gold beats all these fiat currencies hands down. It is the only monetary system that works that imposes discipline on governments, keeps them honest, prevents asset bubbles, and facilitates trade. Central banks have got to buy more gold. Institutions, pension fund endowments everyone is going to have an allocation to gold in their portfolios, 5% ten 10%” he said. Peter Schiff sees a US dollar crash by the end of 2020.