Peter Schiff: Negativity around gold shows ‘many, many years of a bull market’

Who says the decade-long gold bull market has come to an end? After gold and silver suffered a horrendous month of April, many financial experts have been urging investors to sell their precious metals and to move on. However, one long-term proponent of gold believes the negativity shows that gold is here to stay for a long time.

Peter Schiff, president of Euro Pacific Capital, spoke with Yahoo! Finance and Commodity HQ on Friday in which he confirmed that the steep drop in gold and silver prices have not deterred him at all. In fact, he thinks the fundamentals of the yellow metal have never looked better.

Gold began the year at $1,650, but has fallen 12 percent since January. Schiff noted that gold dipped 35 percent in 2008 before it made its record highs. He also stated that market sentiment was rather negative in 1999, which was when Schiff started to buy the precious metal.

A part of the reason he thinks gold will continue to remain high and enhance even further is the Federal Reserve’s monetary policy. Schiff said that many Americans feel the economy is improving, but he contends that it isn’t because any results are due to the Fed printing money and artificially stimulating the economy.

“People think the U.S. economy is recovering. It’s not. It’s strictly a result of money printing,” explained Schiff. “Since the Fed is going to have to print more and more money to keep this phony recovery from imploding, it’s extra bullish for gold.”

Schiff made a bold statement also last week when he said those who abandoned gold in light of the latest declines lack a “clear concept of the monetary transformation taking place.” As Global Gold News has reported in the past, Schiff projects gold hitting $5,000 per ounce.

Another gold bug also supports gold in the long run. Speaking with Bloomberg News late last month, finance guru, Fed critic and commodities expert Jim Rogers stated if the bear market for the yellow deepens and hits $1,300 or $1,200 then “he hopes he’s smart enough buy some.”

“Gold was acting very unusually for the last 12 years and was overdue for a decline,” said Rogers. “Gold will make a proper bottom before resuming the bull market.”

It appears that a lot of people feel the same was as Rogers and Schiff. It was reported that demand for physical precious metals has been rather strong, especially considering the substantial drop in gold prices. Gold experts have explained that the high demand is due to gold bugs seeing this as a tremendous buying opportunity, perhaps one that might never come again.

“So, we’ve actually seen on the physical side a big bump in investors wanting to add to their position or jump in for the first time. So, demand at the mint level for coins, demand at the retail level in our business, is at an all-time high right now,” said Scott Carter, CEO of Lear Capital, the largest seller of physical gold and silver in the country.

At the time of this writing, gold is trading at $1,431.80, while silver is up $0.05 at $23.71.

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