Gold prices have reached a new milestone, topping $2,000 for the first time ever. Still, most people don’t really understand the significance of the rise and what it means for the US dollar, says veteran stockbroker Peter Schiff.
In his latest podcast, Schiff says that “in reality, gold is the only asset that’s not in a bubble because of negative real interest rates.” The only thing that really surprised him about the precious metal exceeding $2,000 is that it took so long to get there.
“But I think that the thousand-dollar milestones are going to start dropping like dominoes here. And I think people are going to take notice, because today, very few people are noticing or commenting on the significance of gold going over $2,000 because they don’t understand it.”
According to the economist, the rising price of gold is indicating that the US currency is in trouble. “The dollar is on fire, and the fire may have begun with the dollar, but it’s going to spread to the financial markets and the entire economy and people just don’t get this,” he said.
Schiff noted that the greenback is close to a Wile E. Coyote moment, when it drops off the cliff and plummets. “I think that’s what’s going to happen soon to people who are in the dollar. As soon as they look down and realize where they’re standing, the dollar is going to drop like a stone and that’s when the price of gold is going to skyrocket. And so, you’d better be on that rocketship before that ride begins.”
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