CME Group CEO: Gold Extremely Undervalued; Should Be $5,000 to $6,000 Per Ounce

CME Group CEO: Gold Extremely Undervalued; Should Be $5,000 to $6,000 Per Ounce from Schiff Gold

In his Gold Videocast last week, Peter Schiff made the case that silver is extremely undervalued, especially when compared with gold.

In a recent interview with Neil Cavuto on Fox Business, CME Group Chairman Terry Duffy says gold is undervalued as well. He said he believes realistically, gold should be at $5,000 to $6,000 per ounce.

And at some point, the price will catch up with reality.

If you look at the price of gold today, just around $1,200 an ounce, and if you look at back in the early 80s. it was trading around $800 an ounce. So, if you adjust for inflation, you should have gold at around $2,000 or $3,000 an ounce, and if you look at what’s gone on in the world, it should probably be at $5,000 or $6,000 an ounce.”

Duffy said he thinks the main reason gold and silver remain undervalued has to do with the fact that most people misjudge and downplay the amount of instability and economic chaos in the world. But at some point, the blinders will fall off.

I think so many of us have become jaded and whatever happens in the world is like yesterday’s newspaper in 5 minutes. So, people are dismissing some of these events to a point where one day you won’t be able to dismiss them, and you’ll see a huge move in some of these precious metals.”

Many analysts have questioned whether Pres. Trump will be able to push through the economic reforms he promised. The fact that Congress still hasn’t managed to pass any kind of healthcare bill doesn’t bode well. But Duffy said the real problem isn’t Capitol Hill. It’s the Federal Reserve. He said Janet Yellen and company have created “frustration” and “confusion” in the marketplace.

I think the market is a little frustrated with what the Fed has said over the last several years. The Fed said they wanted to see certain economic factors happen including unemployment. A lot of those factors were in the marketplace including unemployment and no inflation, and the Fed still did not move rates. That confused the market.”

Peter has also talked about the unrealistic optimism and false sense of financial security many Americans seem to feel. During a recent interview at International Metal Writers Conference, Peter Schiff said we are in the eye of an economic hurricane right now. Investors need to take advantage of the relative calm and buy gold and silver.

I think once people start figuring out, the price of gold is going to start to rise in $50 to $100 increments. But, before that happens, you just want to take advantage of his lull in the storm. We’re in the eye of an economic hurricane right now. People think that 2008 was the end of it – that was when we entered the storm. Now we’re in the eye. We’re coming to the rest of the storm shortly. So, for now, it’s just a good time to buy gold while there’s so much complacency.”

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Peter Schiff

Mr. Schiff began his investment career as a financial consultant with Shearson Lehman Brothers, after having earned a degree in finance and accounting from U.C. Berkeley in 1987. A financial professional for more than twenty years, he joined Euro Pacific in 1996 and served as its President until December 2010, when he became CEO. An expert on money, economic theory, and international investing, he is a highly sought after speaker at conferences and symposia around the world. He served as an economic advisor to the 2008 Ron Paul presidential campaign and ran unsuccessfully for the U.S. Senate in Connecticut in 2010.