Gold and Silver Assessment from Economist Peter Schiff

In an assessment made to Kitco News, economist Peter Schiff stated that sell-offs in the US bond market could increase demand for precious metals and that gold per ounce prices could reach $5,000 sooner than expected.

Developments in the Bond Market

While it was noted that the US 10-year Treasury yield reached its highest level since 2002, it was argued that the sell-offs in the bond market are still in their initial stage.

It was stated that investors who suffered losses from the current decline in bond prices could redirect a portion of the money they obtain into alternative assets such as gold and silver.

Gold per Ounce and Silver Expectations

Contrary to the one-year timeframe expressed at the annual gold market conference in London, it was suggested that gold per ounce could reach $5,000 in a much shorter period.

It was conveyed that silver has stabilized around $60 and surpassed the past $50 resistance, and that the $125 level may not even be the ultimate peak in the new wave of increases.

Central Bank Purchases

It was asserted that recent pullbacks in gold prices stemmed from algorithmic trades reacting to interest rate hikes.

It was recorded that the People's Bank of China carried this process into its 23rd consecutive month with purchases made in September, and World Gold Council data supports central bank demand.

US Economy and Housing Sector

Arguing that the environment of high debt and interest rates is unsustainable, it was projected that the annual net interest cost of the federal debt could rise to trillions of dollars.

It was estimated that mortgage rates could reach 9 percent in the first quarter of next year, and housing prices could experience a decline between 30 and 50 percent.