Peter Schiff Launches Gold Fund and Sees Gains Ahead
Liz Claman of Fox News interviewed Peter Schiff who just launched a gold fund.
Schiff said gold stocks are the cheapest they’ve been since he’s been alive. He created the Europac Gold Fund (EPGFX) to take advantage of the buying opportunity of a lifetime that he sees in the gold mining sector.
Schiff sees the best fundamentals for gold stocks, while sentiment is at its worst. Speculators who shorted the market are going to have to cover, according to Schiff.
“There will be a lot of consolidation in the mining sector because companies looking for more gold to mine might look at some of the opportunities on the stock market,” Schiff stated and added, “because these stocks are so cheap it makes more sense to buy up your competitors than to go look for more gold.”
Claman asked Schiff what his target price for gold was and what would get it there. Schiff replied that it’s hard to tell, but he thinks the bottom is going to drop out of the dollar, with a worse financial crisis in store for the U. S. than the 2008 crisis, and an eventual price for gold of $5,000 an ounce or more.
Schiff commented on the Valcambi CombiBar which he is a dealer of and said sales were good. He added that demand has been very strong around the world for physical gold.
Schiff said hedge funds, private equity funds, and short-term speculators have sold the gold market down.
Schiff said that those who sold their gold on the way down are going to find it difficult to get back in the market because the gold might not be available at a reasonable price.
Back in February 2012, Schiff stated “interest rates are going to rise, then what happens?” and commented on bullish statements by Warren Buffett and Jeremy Siegel [link].