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March 1, 2009

Peter Schiff on Gold (Wall Street Unspun, Radio Show)



I still don`t think it is a bubble but that does not mean that prices can`t go down. I think it has a long way to go before it has bubble characteristics. You know, the average person is not buying gold.

In fact one of the things people talk about about sigs of a bubble in gold is all those ads "cash for gold", "cash for gold". But that is the opposite of a bubble.

That is people selling their gold. Companies encouraging americans to take their gold jewelry and get rid of it for cash. At the end of a bull market people will not be be looking to get rid of their gold, they are going to be buying gold.

I still think most americans do not own gold. Most americans don`t even know someone who owns gold.

But certainly gold is getting more popular than it wasmore people are advocating it now, so that means that there can be a correction. But I think gold is going a lot higher.

If you look at some of the bullish calls from the major brokerage firms, people are saying, gold 1,000 dollars, gold 1,200 dollars. These are not crazy calls.

By the time you the end of the gold bull run, price of gold will be at 5,000 dollars and somebody will come out and say that gold is headed for 20,000. You are going to have outragous calls.

When oil run up to 140 people were predicting 300. Everybody is being cautious in their predictions for gold prices and no one is predicting a to true big run.
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