Peter Schiff: Gold Can Only Go Higher

Includes: FSG, GDX, GLD
by: CommodityHQ

By Jared Cummans

The well-known gold bug, Peter Schiff, is not one to shy away from his opinions. He has been very vocal about his feelings on the government, markets, and of course, gold. Schiff has been boasting about this precious metal for quite some time, as he has listed off a number of factors weighing into a potential bull run. Among those factors are dollar debasement, a struggling economy, and an approaching fiscal cliff that all make the safe haven commodity even more appealing.

His most recent comments seem to suggest more of the same bullishness, if not increase it. “Gold’s got only one direction to go, and that’s higher,” he said. This only reaffirms his claims that he thinks bullion prices will see $5,000/ounce in the not-so-distant future. But it should be noted that while he is a big fan of this commodity, he understands that it is not for everyone.

At the Inside Commodities conference this year, Schiff made good points that gold may not fit with everyone’s strategy. For those individuals, he recommended buying and holding gold in the short term, as markets are being deflated when compared to gold. In this case, if gold surges, you will be able to sell the precious metal and purchase more of the assets that fit with your objectives. Of course, if gold does surge to $5,000, you may never want to sell in the first place. Below, we outline a few ways for you to take advantage of Schiff’s gold prediction.

  • SPDR Gold Trust (NYSEARCA:GLD): The largest commodity ETF in the world, this fund tracks physical gold and has amassed over $73 billion in total assets.
  • 2x Gold Bull/S&P 500 Bear (NYSEARCA:FSG): This fund takes a unique approach by shorting the S&P 500 while taking a 200% leveraged position in gold, effectively tracking the spread between these two assets. If markets continue to deflate in terms of gold, FSG stands to gain a fair amount.
  • Market Vectors TR Gold Miners (NYSEARCA:GDX): This fund represents an equity spin on gold investing, as it makes allocations to some of the biggest gold miners in the world.

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Disclosure: No positions at time of writing.