The end of May was not good for gold. The precious metal ended the month with the biggest weekly drop since September, just as stocks kept climbing upward to new all-time highs. The question for gold bugs is will the downtrend for gold continue as investors’ appetite for risk seemingly grows every day.
Peter Schiff, author of The Real Crash – America’s Coming Bankruptcy, says don’t miss out on owning gold here. The noted gold bug says in the attached video that gold experienced “a lot technical-related selling,” and that “the fundamental news kept improving for gold, but people weren’t noticing.”
The ‘fundamental’ reason why Schiff sees gold rising is due to the U.S economy, with the Bureau of Economic Analysis last week releasing a revised negative 1% print for Q1 this year. “The U.S. economy is dramatically slowing down, I think that’s going to continue,” he says. “At some point gold traders are going to wake up to the reality that the U.S. Economy is going back into recession, unless the Fed comes in with more Q.E., which I think it’s going to do, and that’s extremely bullish for gold.”
A prediction for further Q.E. isn’t the only surprise Schiff revealed recently. In an odd about-face, Schiff has now decided to let investors use bitcoin to buy gold through his firm, with exchange Bitpay acting as an intermediary.
You can see the full “Breakout” segment below:
Related: SPDR Gold Trust (ETF)(NYSEARCA:GLD), ProShares Ultra Gold (ETF)(NYSEARCA:UGL), Freeport-McMoRan Copper & Gold Inc.(NYSE:FCX), Barrick Gold Corporation (USA)(NYSE:ABX)