Schiff Sees Gold at $20,000 in A Dollar Crash
The comments below are an edited and abridged synopsis of an article by Piero Cingari
The value of gold could rise tenfold and hit $20,000 per ounce in the event of a collapse of confidence in the US dollar and runaway inflation, according to Peter Schiff, CEO and chief economist of brokerage firm Euro Pacific Capital.
Schiff recently took part in an exclusive Capital.com debate with Australian and post-Keynesian economist Steve Keen, in which the two experts discussed the possible effects of a market crash.
What could trigger a loss of confidence in the US dollar is the Fed’s inability to tame inflation through late and timid interest rate hikes, Schiff explained.
“There’s no way these tiny rate hikes are going to do anything to bend the inflation curve. The Fed is going to continue to get further and further behind the curve,” Schiff said.
As seen in the chart accompanying the article, the data demonstrates that the difference between interest rates and inflation—the so-called real interest rate—in the US is at an all-time low.
Topics addressed: The Fed is still way behind the curve; a market crash in unfolding—will it affect the dollar, stocks or bonds; gold in focus—will its value skyrocket; and the value of gold has increased 100-fold since the creation of the dollar.