The price of gold and silver are plummeting. Since the Federal Reserve announced that it would leave interest rates unchanged, gold has plunged to under $1,300 an ounce, while silver has plummeted to nearly $17 per ounce.
You may think that gold’s momentum is over. In fact, it’s just getting started, says Peter Schiff, president and CEO of Euro Pacific Capital.
Speaking in an interview with CNBC, Schiff urged investors to start piling up gold, even with the yellow metal tumbling as of late. How come? Well, the talk of a recovery is “wrong,” it’s an “illusion” and it’s another “gigantic bubble.”
He added that the economic data has worsened since the Federal Reserve delayed a rate hike.
“I’m certain that all this talk about a recovery is wrong. The recovery is an illusion, it’s just another gigantic bubble,” said Schiff. “Everybody wants to go to heaven, but nobody wants to die, and that is the problem. We’re never going to have a real recovery until we kill this phony recovery, but for political reasons, that’s not going to happen.”
In the end, Schiff predicted that once you include the uncertainty over the United States presidential election then there would be no way the Fed would shock the stock markets with an increase to interest rates. It wouldn’t even matter how far in advance the Fed is giving markets.
According to CME Group FedWatch tool, there is now a 63 percent chance of a December rate hike.