Has the gold rush come to an end?NEW YORK — When the price of gold plunged $200 last month, many people thought they caught the sound of the gold bubble popping.
What Peter Schiff, the CEO of brokerage Euro Pacific Precious Metals believes he heard was a stampede of fair-weather speculators fleeing the precious metal.
Schiff and other champions of gold weren’t shaken by the plunge. To them it was just a short breather in preparation for another long climb.
All the reasons they give for buying gold haven’t changed: Gold remains a refuge from disaster, they say, arguing that a steep drop in the dollar and a spike in the price of consumer goods are a threat.
For speculators, buying gold was simply a way to profit from its popularity.
“That’s what happens in a bull market,” Schiff says. “The selloffs shake out the Johnny-come-latelies. It’s healthy. Now we can have a real rally.”
Gold, often touted as the most trustworthy of investments, has looked wild