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Peter Schiff emerged as a hero during the financial crisis for his earlier stubborn claims – among others – that the U.S. housing market was in big, big trouble, along with the U.S. dollar and consumer spending. A compilation of his views in 2006 and 2007, in which he debates the everything-is-fine crowd, is still a much-watched video on YouTube.

But is Mr. Schiff overplaying his hand? The president of Euro Pacific Capital believes that U.S. stocks have risen in a bear market rally since the beginning of March, and there is a good chance that indexes will fall below their March lows.

He also believes that gold is the place to be – that mistakes made by the Obama administration could send the price of gold up to $5,000 (U.S.) an ounce over the next several years, and perhaps even higher if mistakes continue to be made, implying a 400 per cent increase over the current price, in U.S. dollar terms.

Right now, the ratio of the Dow Jones industrial average to the price of gold is about 9.7, but Mr. Schiff think that ratio is headed toward 1:1. He is, by the way, running for the U.S. Senate in Connecticut...as a Republican. (Hat tip: Crossing Wall Street ).

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