Peter Schiff says Bitcoin's "sucker's rally" is overshadowing the strength of gold
(Kitco News) - Euro Pacific Asset Management’s chief market strategist Peter Schiff – who is well known for his pro-gold, anti-bitcoin stance – recently took to Twitter to say that the rally seen in Bitcoin over the past week has overshadowed the performance of gold, and that the precious metal still has a long way to run.
“The Bitcoin rally is providing cover for the gold rally to continue unnoticed,” Schiff tweeted on Wednesday. “As the financial media is distracted by the sucker's rally taking place in fool's gold, its paying no attention to the real rally going on in actual gold. So gold's rally still has a long way to go.”
The unabashed gold bug followed up this Tweet with another on Thursday that pointed out that gold had reached its highest price since April 2022 and that many gold stocks had yet to join the party.
#Gold is now trading above $1,934, its highest price since April of 2022. Gold stocks however still haven't even taken out last week's high. In fact, gold stocks need to rise 30% from here just to get back to where they were trading in April of 2022. This sale may not last long.— Peter Schiff (@PeterSchiff) January 19, 2023
In early trading on Friday, Gold briefly surged to an intraday high of $1937.44, its highest price in nine months according to Kitco senior technical analyst Jim Wyckoff, who said the move came “amid a solidly bullish technical posture and some mild safe-haven demand.”
According to Wyckoff, “yellow metal bulls are at least quietly starting to discuss a new record high,” which currently stands at $2,078.80 per ounce.
Data provided by The Block shows that the 30-day Pearson Correlation between Bitcoin and Gold is currently at 0.71 after both assets have gotten off to a strong start in 2023 while the dollar has continued to drift lower and the performance in the stock market has been mixed.
BTC/Gold Pearson Correlation. Source: TheBlock
Schiff previously told the Epoch Times that gold would rise in 2023 as the dollar weakened. He added that rising interest rates would inflate national debt obligations, leading borrowers to service debts rather than save.
|Bitcoin's correlation with gold is rising and here's what that means - Bank of America|
As for Bitcoin, Schiff predicted in an interview with Kitco News in August that the top crypto is unlikely to ever make new highs beyond $69,000, and instead insisted that it would eventually fall to $10,000 and below.
“At the end of the day, the only people that are going to walk away from this crypto bubble with anything to show for it are the people who sold,” he said.