By CCN Markets: Longtime crypto critic and gold proponent Peter Schiff is excited. He's not happy due to the stock market hitting new all-time highs or bitcoin prices surging but rather by a microscopic advance in the price of gold. This week, the price of…
By CCN Markets: Longtime crypto critic and gold proponent Peter Schiff is excited. He’s not happy due to the stock market hitting new all-time highs or bitcoin prices surging but rather by a microscopic advance in the price of gold.
This week, the price of gold topped $1,400 per ounce for the first time in more than five years. This, a mere 25% rally from recent lows, was enough for Schiff to declare victory:
Over the last year exactly, it is up $130 per ounce or 10 percent.
Peter Schiff has reasons to stay permanently bullish on gold. For one, he runs a website which buys and sells physical gold and silver. His asset management company also runs a mutual fund that invests in gold-related stocks. Over the past five years, it has returned less than 1 percent annually. Forget topping bitcoin, Schiff’s gold fund hasn’t even been able to keep up with a savings account.
Despite gold’s mediocre returns, Schiff has kept the faith.
Back in 2012, in the CNBC interview shown above, Schiff said that gold – then trading at $1,700 per ounce – would spike to $5,000 within two years. Instead, it plummeted to just $1,050 per ounce, leading to massive losses. Seven years later, while Schiff is gloating on Twitter, gold still trades far below where it did back in 2012. When CNBC asked Schiff for an update on his failing prediction in 2014, he said:
“Obviously it’s going to take a little bit longer than what I believed at the time [… but] it’ll go through $2,000 very quickly, and people will be upset that they didn’t buy gold at $1,700.”
Another swing and a miss. At the start of 2016, Schiff again predicted that gold would soon top $2,000 per ounce. The list of failed predictions goes on and on.
It’s entertaining to watch Schiff’s Twitter beefs. But they can be expensive if you take his viewpoint seriously. While he’s been promoting gold during its massive decade-long bear market, he’s constantly been bashing bitcoin and the stock market as both have delivered gigantic returns. Take this twitter exchange from 2016:
Schiff’s been pushing this narrative that bitcoin is a Ponzi scheme and that gold is the only form of real money for years now. In mid-2017, with bitcoin at just $4,000 for example, he said that:
“What it comes down to is that bitcoin ain’t money. The main benefit of bitcoin – the only segment of society where it’s used for something other than speculation – is crime […] This is a speculative frenzy. Right now, this is a bubble. It’s a cult.”
Since then, bitcoin more than doubled and the stock market has soared while his cherished metals have gone nowhere. But for at least one day, the stopped clock is right as Schiff celebrates gold’s laughably small recovery.
This article was edited by Gerelyn Terzo.
Last modified: January 11, 2020 1:39 AM UTC