The real driver behind the rise of gold prices is the world’s central banks’ buying spree, says Peter Schiff of Euro Pacific Capital.
The veteran broker tells RT’s Boom Bust, false optimism based on expectations of a US-China trade deal which is “not going to happen” was also driving the price.
He explains that last week’s sharp rise of interest rates was due to growing inflation pressures in the economy and because there’s not enough demand for all of the bonds being sold.
“All of this is very bullish for gold and so rather than simply selling bonds people should be buying gold because they need to get out of the dollar,” says Schiff. “In fact they need to get out of the fiat currencies in general and seek a real safe haven – and that’s gold,” he adds.