January 24, 2014

Peter Schiff of Euro Pacific Capital Touts Gold as the Hottest Trade of the Year

business man holding his head with text asking questions about stock broker misconduct

According to a recent interview on CNBC, Peter Schiff, of Euro Pacific Capital states that, “If the Fed starts tapering the whole economy will tank.” (See: http://www.cnbc.com/id/101352642 for the full interview.)

Is gold a suitable investment for all investors? There seems to be a consensus that a small portion of a portfolio should be in gold to hedge against inflation, a falling dollar, or a market crash.

The question is, how much gold is too much gold to own? Gold has been one of the worst performing assets to own in 2013 with the gold down 28%. Clearly gold is not the safe haven it used to be and investors should still be skeptical in buying it in large quantities. Gold miners were hit even harder in 2013, and leveraged gold mining investments were hit worst of all with NUGT down nearly 80% in 2013.

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