Articles


  • Gold at $5,000 and beyond: Peter Schiff sticks to his call



    So what does one of the biggest gold bulls out there have to say about recent action that has been anything but bullish for the precious metal?

    “It’s hardly any move. These are small moves and the media likes to make a lot of noise whenever this happens. ‘We told you, gold’s a bubble. Get out,’” says Peter Schiff , the chief executive and chief global strategist of Euro Pacific Capital, who has been calling for gold to hit $5,000 since 2000, when it traded at around $300 an ounce.

    Gold has languished since Monday’s pummeling, which saw it hit five-week lows.  And gold is being outperformed by every other precious/base metal out there so far this year. HSBC lifted its silver SIH3 +0.07%  forecasts on Wednesday. (Also, check out 7 gut checks, which mentions what one hedge fund has said about gold recently.)

    But Schiff is nonplussed. “If you compare the volatility to stock markets, it’s a lot less volatile. Also, whenever the stock market makes a nominal new high, the bias in the media against gold goes up,” says Schiff. (Watch Dennis Gartman of The Gartman Letter on CNBC talking about how gold is breaking down.)

    Schiff’s big gold call ties into his extremely bearish view on where the dollar is headed, amid the money-printing from the Fed and other central banks and hyperinflation that he says is coming. Watch Schiff on Dow at 14,000 is no big deal

    Quantitative easing is one reason many gold bugs like Schiff think the precious metal is a winner in the long run. The more money central banks print in a bid to help growth, the more it may weaken their currencies.  And that works in gold’s favor. Conversely, efforts (or anticipation of such efforts) to rein in monetary stimulus tend to clip gold. Check out: Confusion reigns over G-7 position on yen

    “We are creating so much money. Japan, Europe, China, the whole world is engaging in a race to debase. Everybody thinks inflation is good, printing money is good, a weak currency is good,” said Schiff.

    In some ways, Schiff’s call has been a good one. Gold prices had run up by a factor of five by August 2011, when they hit a settlement high just under $1,900 an ounce on the New York Mercantile Exchange.


    Read full article
  • Rabindra Kayastha

    Authorized Person for MEX NEPAL
    Mob: +977 9856030634

  • Pawan Dhakal

    Biratnagar Branch Manager
    Mob: +977 9852033934

  • Our Clearing Member

    Himalayan Commodity Brokers
  • Our Banking Partners

    Laxmi Bank
  • Bank of Kathmandu
  • Nepal Investment Bank Limited
  • Century Commercial Bank Limited