Peter Schiff says recent sell-offs of 1 hot asset are meant to ‘scare’ weak hands — but the market is ‘alive and well’
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Anyone who’s watched markets for more than a minute knows one thing: big rallies don’t move in neat, polite lines. Even the strongest trends can be interrupted by sudden, jarring pullbacks — but that doesn’t necessarily mean the narrative has changed. That’s the message economist Peter Schiff is urgently trying to drive home.
In fact, according to Schiff, who is also involved with SchiffGold, the biggest moves often run against the prevailing trend.
“When you’re in a bull market, the biggest moves are down. Just like in a bear market, the biggest moves are up,” he said in a recent episode of “The Peter Schiff Show.” (1)
“That’s because the market is trying to fool people into thinking that either the bull market is over or the bear market is over.”
And right now, Schiff says that’s exactly what’s happening in one asset: gold.
After a powerful multi-year climb, the yellow metal suddenly lurched lower — including plunging as low as 6.3% on Oct. 21, its steepest single-day drop since 2013. (2) Headlines flashed. Social media panicked. Some investors ran for the exits.
Schiff’s view? That’s a trap.
“In the case of gold, it’s a bull market and these sharp corrections are designed to scare out the weaker players — get rid of the dead weight, the excess baggage — before we move up to new highs,” he said.
“The market doesn’t ring a bell at the top or the bottom and so you don’t get this big drop that says, aha, the gold bull market is over,” he explained. “No, these big drops like that are a sign that the bull market is alive and well, it just has this correction.”
Read more: Warren Buffett used 8 simple money rules to turn $9,800 into a stunning $150B — start using them today to get rich (and then stay rich)
Markets have a way of swinging sentiment from euphoria to fear almost overnight. When gold was surging toward record highs, investors piled in and Wall Street analysts rushed to lift their price targets. (3) But once prices stumbled, anxiety followed — and some investors may be tempted to sell even below levels they were previously excited to buy at.
Schiff thinks that behavior gets it backwards.
“Gold is a great buy below $4,000,” he wrote in a recent post on X, noting that “it was just a week ago that gold almost hit $4,400” and adding that “those highs will likely not even be close to the peaks of this bull market.” (4)
In his view, the recent slide isn’t a warning — it’s a reset. Schiff argues that the pullback is “flushing out the sell stops below $4,000,” clearing out short-term traders who might otherwise weigh on the next leg higher. (5)
His conviction in gold comes from a longstanding distrust of fiat currency and concerns over inflation. When gold was trading around $2,600 roughly a year ago, Schiff made a bold prediction:
“If gold can go from $20 an ounce to $2,600 an ounce, it can go from $2,600 to $26,000, or even to $100,000. There’s no limit because, again, gold isn’t changing — it’s the value of the dollar that’s decreasing.” (6)
Gold appeals to some investors for precisely that reason. Unlike fiat currency, gold can’t be printed at will by central banks. It’s also widely considered the ultimate safe haven asset: not tied to any one country, currency or economy. In times of economic turmoil or geopolitical uncertainty, investors often flock to gold — driving prices higher.
Schiff isn’t the only prominent voice in gold’s corner. Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, told CNBC earlier this year that “people don’t have, typically, an adequate amount of gold in their portfolio,” adding that “when bad times come, gold is a very effective diversifier.”
Meanwhile, JPMorgan CEO Jamie Dimon recently said that in this environment, gold can “easily” rise to $10,000 an ounce.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to help shield their retirement funds against economic uncertainties.
When you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in precious metals for free.
Beyond gold, real estate has long been another go-to asset for investors looking to protect — and steadily grow — their wealth during inflationary periods.
When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.
Over the past five years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has jumped by 47%, reflecting strong demand and limited housing supply. (5)
Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn’t exactly hands-off work — managing tenants, maintenance and repairs can quickly eat into your time (and returns).
The good news? You don’t need to buy a property outright — or deal with leaky faucets — to invest in real estate today. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.
Another option is Mogul, a real estate investment platform offering fractional ownership in blue-chip rental properties. Investors can earn monthly rental income, benefit from real-time appreciation and enjoy potential tax advantages — all without a hefty down payment or those dreaded 3 a.m. tenant calls.
Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.
Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.
Every investment is secured by real assets, not dependent on the platform’s viability. Each property is held in a standalone Propco LLC, so investors own the property — not the platform.
Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.
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This article originally appeared on Moneywise.com under the title: Peter Schiff says recent sell-offs of 1 hot asset are meant to ‘scare’ weak hands — but the market is ‘alive and well’
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
