Two years ago gold bugs ran wild as
the price of gold rose nearly six times. But since cresting two years
ago it has steadily declined, almost by half, putting the gold bugs in
flight. The most recent advisory from a leading Wall Street firm
suggests that the price will continue to drift downward, and may
ultimately settle 40% below current levels.
The rout says a lot about consumer
confidence in the worldwide recovery. The sharply reduced rates of
inflation combined with resurgence of other, more economically
productive investments, such as stocks, real estate and bank savings
have combined to eliminate gold's allure.
Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as "Doctor Doom" because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the first from within the professional investment field to call the housing market a bubble. Peter has written a book called "Crash Proof" and a follow-on called "The Little Book of Bull Moves in Bear Markets". He is the President of EuroPacific Capital, which is a brokerage specializing in finding dividend-yielding, value-based foreign stocks.
