Peter Schiff: Gold to hit $5,000 per ounce

Peter Schiff, President of Euro Pacific Capital and author of "Crash Proof 2.0," recently spoke with Fox Business News about this week's surge in gold prices and foreign mining stocks.

The 2010 Connecticut Senatorial Republican candidate and economic forecaster, Peter Schiff, sat down with Fox Business News on Wednesday to discuss the recent surge in gold prices and made a stunning projection, similar to past predictions, that gold will reach $5,000 per ounce. Schiff has been a bull on precious metals and mining stocks across the globe, especially two Canadian companies Red Back Mining and Capstone Mining. The author of “The Little Book of Bull Moves in a Bear Market” has been buying gold since 2000 when it was at $200USD and still thinks an investor or someone who wants to protect him or herself from inflation should purchase gold because of its further potential highs. “First of all it’s definitely not too late to buy, don’t wait for Crash Proof 3.0 to buy gold. Given the fact that all what’s happens and all what’s likely to happen and that gold is still this close to $1000 people should be buying. The fact that gold is going up is the reflection of inflation and not just in America.” On the topic of foreign currencies, Schiff does like the Japanese Yen, the Canadian Dollar, the Australian Dollar and the Chinese Yuan Renminbi as most of them have reached 52-week highs. He also foresees European currencies fluctuating in higher prices, even if they’re not moving much right now. Nevertheless, gold’s high prices is due to international inflation because a lot of governments are printing a lot of money, according to Schiff, “Why is gold up, even though the dollar isn’t down? Well, that means that the Euro is down, or the Chinese Renminbi or the Yen. Everybody is creating inflation, everybody is printing too much money, they have interest rates too low so gold is going to go up. But I think gold is going to go up against the dollar because we’re creating more inflation and even more recklessly.”