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While markets are in heavy decline, including precious metals such as silver and the all-time safe-haven gold (XAU), famous Bitcoin critic Peter Schiff says he is not as surprised at gold's decline as he is that Bitcoin has dropped 'so little’.
‘Bitcoin is down so little’
While gold has mostly been a reliable safe haven and rarely tumbles, this time as the global turmoil in stock markets and financial markets continues, even XAU has shown a weak spot and moved down the charts.
Gold advocate Peter Schiff tweeted last week that gold was down 2.4 percent, while BTC started a sharp decline of 25% before continuing to fall.
Today, Mr. Schiff writes that gold has lost 4 percent but Bitcoin is down 15 percent, as the price has slid down to the $4,600 zone. The latter fact is crazier than the former for Schiff. He calls the BTC price fall ‘a little one’, though one BTC, he explains, can still buy a whole three ounces of gold. That’s a great exchange rate, he tweets.
Over the weekend, U.Today reported that, during a discussion on Twitter, Peter Schiff predicted that Bitcoin was about to lose 50 percent more.
Why the gold price is falling, Schiff explains
When explaining why gold – the best safe-haven asset, as per traditional investors – is going down, currently failing to be a hedge against financial risks, Peter Schiff says that investors do not yet realize how much worse the situation on the markets could get. He obviously means the recent QE program of $700 bln initiated by the US Fed Reserve.
As soon as investors realize what the consequences of the current monetary policy are, he writes, gold will soar in price.
"Gold is falling because investors are clueless as to what is coming. Their mindset is similar to that of central bankers. They have no idea how bad the consequences of the current monetary & fiscal policy mistakes will be. When they figure it out en masse, #gold will skyrocket."