Famous gold bull Peter Schiff now says investors should ‘take a ride on silver’

There are two truths about stockbroker Peter Schiff that go hand in hand: He despises bitcoin and is extremely bullish on gold.

In other words, Schiff will never buy the argument made by crypto acolytes that bitcoin is the “new digital gold” for the 21st century.

And because bitcoin has been mired in a slump lately, Schiff’s been having a field day on X insisting that the “crypto trade is over.”

“If you own Bitcoin, you still have time to get out above $100k, but the time to do so is running out fast,” Schiff said this week. “Once the $100K support level breaks in earnest, the market will likely implode. We make it easy to convert your fool’s gold into the real thing.”

He’s is of course referring to converting bitcoin through his precious metal company, SchiffGold. But despite having gold in its name, Schiff is now also making a bull case for silver.

“Silver is back above $54, less than 25 cents away from a new record high,’ Schiff said. “It’s already up over 16% since hitting its low two weeks ago. “

“Forget about Bitcoin,” he added. “If you want a faster horse than gold, take a ride on silver. Hi-ho, Silver!”

To be sure, with a significant amount of political and fiscal uncertainty impacting the markets this year, investors have been increasingly putting money into precious metals (and yes, also bitcoin).

Gold hit a record high in October, rising above $4,100 for the first time. It is up about 51% for the year.

But silver has also been on a dramatic tear this year, surging as much as 61% for the year at one point. It hit a record high in October by rising to $52 per ounce, and then broke that record this week surging to $54.

It’s spot price was at $52 on Thursday.

December Fed meeting looms large

What can add to the appeal of investing in silver besides using it as a safe haven during volatile markets is its many use cases. The metal is found in solar panels, electric vehicles, batteries, circuit boards and switches, electronics, and obviously jewelry.

It is also cheaper than gold per ounce, which can make it an attractive tradable asset for retail investors.

There is some uncertainty hovering over the precious metal trade though as questions remain about what the Federal Reserve will do at its last meeting of the year in December.

While the consensus a couple of months ago was that the Fed would make one final 25 basis point cut, inflation remains frustratingly above the 2% target.

This has increased the possibility that the central bank will refrain from further easing until next year.

This could send silver prices down because a rate cut acts as a tailwind since it lowers the opportunity cost of holding a non-yielding asset like silver, making it more attractive to investors compared to assets like bonds.

This effect is amplified by the weakening dollar, which is often a byproduct of a rate-cutting cycle.

And silver has already seen some volatility over the past month, plummeting by up to 8.7% to $47.89 per ounce on October 21, not long after hitting a record high.

Schiff suggests this volatility has created opportunities for investors.

“Silver stock investors were so scared off by the last sharp correction that some silver miners are still in bear-market territory, down 20%–30% from their October highs,” he said. “Buy the dip!”