Thursday, July 28, 2011
Peter Schiff Says Gold Will Reach $10,000 Per Ounce
In this video Peter Schiff of Euro Pacific Capital is asked about a previous quote in which he suggests that gold could reach a price as high as $10,000 per ounce. At the time this video was recorded, the Dow`s value lied at around 10,000. Schiff clarifies in the video that the value of the Dow could move up or down, but that he predicts a one to one ratio of the gold price to the down. That means thathttp://www.blogger.com/img/blank.gif it would cost 1 ounce of gold to buy one share of the Dow. So if the Dow stays at 10,000, then the price of gold will also end up somewhere around $10,000.
The one to one ratio also occurred in 1929 and 1980, at the peak of gold`s bull markets. Today the Dow is at approximately 12,500, so if the gold to dow ratio was one to one today, then it gold would cost $12,500 per ounce.
According to Mike Maloney of goldsilver.com, the gold price could reach as high as $15,000 per ounce. In light of this prediction, Schiff`s prediction seems thoroughly credible.