A big move up in the price of gold could cause a fall in Bitcoin prices, according to Peter Schiff, CEO and chief global strategist of Euro Pacific Capital Inc.Schiff sees investors’ shift back into gold as a negative for flows into cryptocurrencies. “To the extent in which people think Bitcoin is digital gold, it’s not, but to the extent that people think that, some money that might otherwise be used to buy real gold, is buying fool’s gold instead, and that is taking some of the demand for gold,” he told Kitco News.
Speaking on his outlook on gold, Schiff sees positive growth for the yellow metal in 2018. “I think the price is going higher,” he said, “once people really come to terms with reality on the true state of the U.S. economy, and what the future direction of Fed policy is going to be, there’s going to be a mass exit of dollars, and a scramble to buy gold.
- Source, Kitco News