US dollar will continue to lose against ‘real money, which is gold’ – Peter Schiff
Gold-backed ETFs have seen record inflows, boosting bullion price by 17 percent in the first half of this year, the World Gold Council said in one of its recent reports. This came as global responses to the coronavirus pandemic have triggered rate cuts and massive liquidity injections by central banks and governments.
“The World Gold Council is actually underestimating just how high the price is going to rise, because I think they are also underestimating how much inflation global central banks are going to create, in particular the Federal Reserve, and how much value the US dollar is going to lose against other fiat currencies, but in particular against real money, which is gold” Schiff said.
The veteran stock broker added that gold has historically had much better store purchasing power, noting that even best-performing currencies have a poor track record relative to gold.
“If you understand what gold is you should always have some,” Schiff added. “Gold is going to make a bigger rise against these fiat currencies.”
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