Peter Schiff Says Gold Prices To Go To Parity With The Dow (GLD, IAU, SGOL, PHYS, GLL, DZZ, GDX, GDXJ)

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October 13, 2010 6:59pm NYSE:DZZ NYSE:GDX

Oliver Ludwig, in a recent interview for IndexUniverse, cornered Peter Schiff for his predictions on where the price of gold was heading. Peter said the following, “I like to quote it in terms of the Dow, because you just don’t know how much inflation there’s going to be. So my target is for a relationship


 that’s close to 1-to-1 between gold and the Dow. I’ve had that target since the Dow was worth more than 40 ounces of gold. Right now it’s worth 8 or 8-1/2 ounces, so I think it’ll get down to 1-to-1. But you don’t know where that’s going to be. It could be Dow 5,000-gold $5,000, it could be Dow 10,000-gold $10,000; it could be Dow 20,000-gold $20,000; it could be Dow 2,000-gold $2,000. I don’t know where it’s going to be, but I think it’s going to happen.”

When asked why he chose a correlation of 1:1, Peter responded, “That was the low of the bear market of the 1930 and that was the low of the bear market of the 1970s. The Dow was worth one ounce of gold in 1932 and the Dow was worth one ounce of gold in 1980. So it seems that historically, one ounce of gold is about where the Dow goes when it’s really cheap.”

For the full interview click: HERE

The following are related ETFs. SPDR Gold Trust (NYSE:GLD), iShares COMEX Gold Trust (NYSE:IAU), ETF Securities Physical Swiss Gold Trust (NYSE:SGOL), Sprott Physical Gold Trust (NYSE:PHYS), ProShares UltraShort Gold Fund (NYSE:GLL), DB Gold Double Short ETN (NYSE:DZZ), Market Vectors TR Gold Miners ETF (NYSE:GDX), Market Vectors Junior Gold Miners ETF (NYSE:GDXJ).

See Peter Schiff’s latest video blog below:


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