Economist and gold proponent Peter Schiff has made bold predictions about the future value of gold, suggesting that its price could eventually soar to as high as $100,000 per ounce. He shared these views in a recent discussion on the Lead-Lag Report with hosts Michael Gayed and Will Rhind, where he also addressed global economic concerns, the weakening U.S. dollar, and the impact of U.S. foreign policy on national debt.
Gold’s Potential Surge and Dollar Weakness
Schiff, chairman of Schiff Gold, highlighted that if gold could rise from $20 to $2,600 per ounce, it has the potential to reach $26,000 or even $100,000 as the dollar continues to weaken. He pointed to historical patterns and inflationary pressures, arguing that the U.S. dollar’s decline is inevitable given ongoing monetary policies and international developments.
U.S. Foreign Policy and Economic Risks
Schiff criticized the U.S. government’s foreign policy approach, particularly its military spending, which he claims significantly contributes to the national debt. “We’ve got our troops all over the world, but we can’t afford to provision them without borrowing money,” he remarked. He warned that this reliance on debt to fund global military operations is unsustainable and could prompt a decline in the dollar’s global status. Schiff added that it is unlikely other countries will continue to finance this approach indefinitely.
War, Inflation, and Gold’s Value
Discussing the economic consequences of war, Schiff highlighted the dual threat to currency stability. He explained that war often disrupts productive capacity, leading to shortages in consumer goods while simultaneously increasing the money supply to fund military efforts. This, he believes, could trigger severe inflation and further weaken the dollar, driving up gold’s value as a safe haven asset. Schiff emphasized that a major conflict could accelerate this effect, making gold an attractive investment as a hedge against currency debasement.
Optimism About Gold’s Future
Despite the challenges in the global economy, Schiff remains optimistic about gold’s future. He predicts a substantial rise in its price over the coming decades as the dollar continues to lose value due to money printing and inflation. He also referenced gold’s historic performance, noting, “If gold can go from $20 an ounce to $2,600 an ounce, it can go from $2,600 to $26,000, or even to $100,000.”
In a recent statement, Schiff pointed out that gold is poised to have its best year since 1979, with prices climbing over $540 in 2024 alone—marking the largest dollar gain in history. Despite this rally, he observed that many investors have yet to take full advantage of the bullish market, as they have not increased their exposure to mining stocks or fully recognized the long-term potential in gold.
