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Peter Schiff says Fed will inflate debt, pushing silver to $200
Schiff links his outlook to US debt near $40 trillion and annual deficits around $3 trillion, arguing the Fed lacks room to restore price stability without crisis risk.
Mining.com reports that longtime dollar bear Peter Schiff says the Federal Reserve is “trapped” by the size of US debt and will ultimately deal with it through inflation rather than tighter policy. He argues that with the national debt nearing $40 trillion, deficits approaching $3 trillion, and interest payments heading toward $2 trillion, policymakers cannot restore price stability without triggering a financial crisis.
Schiff said gold has moved higher after June payrolls increased by 57,000, which he said came in well below economists’ expectations of 100,000. He disputed what he called investor focus on Fed rhetoric, adding that he believes inflation is the choice policymakers will make.
Looking ahead, Schiff forecast silver to reach $200 an ounce and suggested $50 could act as long-term support after silver’s recent rally and pullback. He also projected a path for gold toward $5,000 first, and ultimately $10,000, framing the gains as tied to declining purchasing power of the US dollar rather than fundamental changes in silver itself.
He also said mining shares could reprice as investors accept higher, sustainable metal prices, and argued that electricity demand and expanding industrial uses could tighten physical silver supplies. Mining.com reports Schiff believes the metals bull market is only just starting in silver.
Latest closeGold $4,023.80 ▼1.2%|Silver $57.33 ▼2.0%