‘Something big about to happen’: Economist Peter Schiff as gold hits $4,370 

As gold hit its best week in five years, economist Peter Schiff warned that something big is about to happen. The Chief Economist & Global Strategist at Euro Pacific Asset Management said this was getting rather serious. 

“This is getting serious. Gold is at $4,370. It could hit $4,400 tonight. That's a 10% move in just over a week. Something big is about to happen,” said Schiff.

Gold prices broke through the $4,300 per ounce barrier on Friday, extending a record-setting rally and posting the strongest weekly advance since March 2020. Spot gold was up 0.3 per cent at $4,336.18 per ounce as of 0233 GMT, after hitting a high of $4,378.69. US gold futures for December delivery rose 1 per cent to $4,348.70. 

Bullion has climbed around 8 per cent this week, benefiting from mounting investor demand amid global economic uncertainty and renewed safe-haven flows. Persistent concerns over US-China trade frictions and instability in regional banks, along with speculation of further Federal Reserve rate cuts, have driven the rally.

Non-yielding bullion, which tends to perform well when interest rates are low, has advanced more than 65 per cent since the start of the year. The rally has been fueled by geopolitical tensions, expectations of rate cuts, ongoing central bank purchases, de-dollarisation trends, and strong ETF inflows. 

Western nations applying pressure on Russia through sanctions have also contributed to market caution. 

Silver tracked gold's gains, reaching a record high of $54.35 before settling 0.7 per cent lower at $53.86 per ounce. Platinum fell 0.7 per cent to $1,701.0 per ounce and palladium slipped 0.4 per cent to $1,607.93, though both metals were set for weekly gains. 

THE GOLD BUZZ

As gold continues to climb, ace investor Vijay Kedia said the rise in gold prices is nothing new, but one needs to look into the “creativity” of investing. “Wealth without creativity is just lifeless money. Gold and silver have been rising for 5,000 years — nothing new in that. But where’s the creativity, the engagement, or the contribution after buying them? Investing in stocks keeps you intellectually and emotionally alive — it connects you with innovation, enterprise, and the progress of the world. Without an active, thinking life, what’s the point of money? You may leave wealth behind, but not wisdom or inspiration,” he said.

Investor Akshat Shrivastava asked if you decide to sell the gold now, where will you invest next? “If you only invest in Gold, life looks great for you. Gold has given a crazy run-up. And, you must be chuckling reading stories like: "My Grandmother is beating fund managers" Cool. But, here is the problem: you are comparing Gold's best days (highs) to Equities normal days (average/lows). Here is another issue: if you are a 100% gold investor. And, you decide to sell gold now. Where will you reinvest? This is called reinvestment risk with assets. Therefore, most of the gold bugs will not sell now. And, they will see a correction. (Maybe not right away. But, at some stage). At that stage, if you run the numbers again at that point: the results between Equity vs Gold might be very different. There is a reason why: you need to invest across asset classes (Equities, Gold, Cryptos, RE) Why? because rotating capital becomes easier,” he explained.

While another user on X said the “mania phase” has not even begun, another said it has reached the “euphoria phase”, which will eventually propel the bull run for crypto.