Gold is hitting some serious highs, but Peter Schiff, the ultimate gold cheerleader, thinks investors are too wrapped up in Bitcoin to notice what’s really going on with inflation.
Gold just smashed through the $2,630 barrier, setting a new record. Yet, Schiff is waving a big red flag, warning that folks are missing out. He’s convinced that the Bitcoin buzz is drowning out the loud and clear signals gold is sending about the economy’s health.
“Everyone's eyes are glued to Bitcoin,” Schiff tweeted on September 23. “And in the process, they’re overlooking gold’s climb and the inflation storm brewing thanks to loose monetary policies.”
Bitcoin, often dubbed “digital gold,” has seen some gains lately. But Schiff isn’t impressed. He thinks Bitcoin is still far from its former glory and stuck in a rut.
He also believes Bitcoin is giving the U.S. Federal Reserve a free pass. “Bitcoin is the best thing to have happened to the Fed,” Schiff said. “It distracts from gold, which would otherwise highlight their policy blunders.”
Despite Schiff’s grumbling, many see Bitcoin as a solid alternative to gold. One crypto analyst who goes by “Noodles” even suggested that gold and Bitcoin have a sort of “accordion” relationship: when one dips, the other might soar.
Schiff, however, is sticking to his guns. He argues that Bitcoin is too volatile and speculative to be a good hedge against inflation. Meanwhile, gold is having its best year since 1979, but Bitcoin hasn't revisited its previous all-time highs.
According to Schiff, gold isn’t just reacting to past inflation but is bracing for even more inflation on the horizon, courtesy of the Fed.
To him, Bitcoin is more of a shiny distraction than a real solution. He urges investors to remember the historical importance of gold.
This isn’t Schiff’s first rodeo when it comes to bashing Bitcoin. The founder of Euro Pacific Capital has a mixed track record with his Bitcoin predictions. In May, he predicted that spot Ethereum ETFs would hurt Bitcoin, as investors would shift their funds from BTC to ETH ETFs. At that time, Bitcoin was cruising above $70,000, its highest in six weeks.
He’s even called Bitcoin “fool’s gold” after it wobbled in response to geopolitical tensions between Iran and Israel.
Schiff’s message is clear: Don’t let the Bitcoin hype blind you to the golden truth about inflation and the economy.
