Gold bug and perma-bear Peter Schiff has a message for all the bears out there: You are wrong!
On CNBC's "Futures Now" recently, Schiff said that Wall Street firms, and Goldman Sachs in particular, which have issued bearish calls on the commodity for some time, are too pessimistic on gold's upside. The investor insisted those firms are missing the big picture when it comes to bullion, due largely to anticipated action from the Federal Reserve that Schiff believes is unlikely to materialize.
"They are still wedded to the old narrative. They still expect the Fed to raise rates three times this year. They will believe in this phony recovery. They still expect the dollar to continue to go up and they're wrong," the CEO of Euro Pacific Capital said. Goldman "is just as sure that is going to collapse now as they were back in December.
Goldman's commodities team has long been predicting that gold would fall below the $1,000 mark within the next year, and reiterated its bearish call last month. Nevertheless, the precious metal has surged more than 16 percent in 2016, as investors have sought safety from the volatile stock market. For Schiff, the recent rally in gold comes as no surprise.
"A few months back when gold was still below $1,200, I said on [CNBC] that I thought when it got above [that level] it would trigger some buying and quickly run up to $1,300," he said. Gold hit a high for the year of just under $1,290 an ounce before retreating to around $1,230. "This is normal consolidation after such a big move," added Schiff.
Schiff, who stands behind his bold call that gold will eventually rise as high as $5,000 an ounce, thinks the rally is set to continue after the consolidation resolves itself. "I think once we break out of this [trading range] and clear through $1,300 we could have a pretty quick move up to the $1,400-$1,500 [range]," he said. "I think there's a lot of momentum in this move."