It’s easy to sum up “famed” investor Peter Schiff: he loves gold and hates crypto. Let’s take a look at Schiff’s curious history with the two assets.
- Peter Schiff And Crypto
- Bitcoin Hate
- Current Relationship with Crypto
- History with Gold
Peter Schiff is an influencer, investment manager, media personality, author, and outspoken advocate for investing in gold. Currently the CEO of Euro Pacific Capital, Schiff is well-known for evangelizing gold-buying as an investment strategy but also claims BTC is a scam. His estimated net worth stands at 70 million dollars. Most of which come from his brokerage firm Euro Pacific Capital, his blogs, several books, and various other media shows that he controls. He also makes frequent appearances on Financial News programming, which he uses as a platform to recommend gold as a safe investment regularly as his most consistent recommendations are for gold, a position that is motivated by deeply held beliefs and his own self-interest.
Peter Schiff And Crypto
Schiff has become notorious in the world of crypto because he regularly takes the opportunity to troll BTC and even crosses swords with the likes of Elon Musk on Twitter. He has always advocated gold as a commodity and has been criticizing cryptocurrencies openly.
Peter started his investment career as a financial consultant with Shearson Lehman Brothers. He earned a degree in Finance and Accounting from U.C Berkeley in 1987. As a financial professional for over 20 years, he is the owner of Euro Pacific Asset Management, in addition to being the Chief economist for Euro Pacific Capital. Euro Pacific Capital is a division of Alliance Global Partners. He is also the owner of SchiffGold, which is a precious metals dealer based in Manhattan.
SCHIFF’S HATE ON BITCOIN
Being a financial expert, Schiff has been against investment in cryptocurrencies. He said, “The truth is the real success of Bitcoin rests on more people buying it. If you own it, you need to get many of your friends or colleagues to buy it because that’s the way its prices go up. Bitcoin is not an asset like real estate where you can collect rent, stocks where you could collect a dividend, or bonds where you get paid interest. It’s not like a commodity where you actually can use it for something, like oil, to generate power. It’s not like gold where you could make jewelry out of it or conduct electricity with it or use it in all sorts of industrial applications like other metals.”
This is the primary reason why Peter is skeptical about cryptocurrency. According to him, It’s just not backed by anything other than people buying it, which undermines its value. He further said, “It’s just a hype machine. If Bitcoin will still be here in the next 20 to 50 years, it only means more people are going to lose money. That’s because when more people pile into it, this means the bubble gets bigger and bigger. Then there are a lot more losses when it pops.”
He believes that it’s quite similar to what happened during the Dot Com bubble period in the late 1990s, where many people invested in internet-based startups filled with speculations that they would be profitable soon. However, in the end, many of these companies failed, creating a massive economic crisis all around.
CURRENT RELATIONSHIP WITH BITCOIN
Peter Schiff, who’s a pro-gold and anti-Bitcoin, has been turned into a bitcoin holder despite his best wishes. Apart from his vocal disdain for crypto, he has admitted to holding Bitcoin gifted by some members of the Cryptoverse. He had claimed on January 20 that his wallet account at service provider blockchain.com had been “corrupted,” meaning that he had “lost” all of his funds. As previously reported, Schiff stated that he had known all along that Bitcoin was “intrinsically worthless” as he added, “I knew that owning Bitcoin was a bad idea, I just never realized it was this bad” However, three days later, he returned to Twitter to post that, “I (he) mistook my pin for my password. When blockchain updated their app, I (he) got logged out. Honest but costly mistake.” He further said, “What the episode does show is how easy it is to lose your Bitcoin if you’re confused about how wallets work” Schiff ended up conceding that he would keep the coins. He twitted, “I guess I’ll have to hold it and go down with the ship.”
SCHIFF’S HISTORY WITH GOLD
It is no secret that Peter Schiff is bullish on gold. He has consistently criticized The US monetary and fiscal policy and claims that an economic disaster is looming in the US and abroad. In that scenario, according to Schiff, Gold is the best choice to provide a safe haven for capital amid a collapsing world economy. Not surprisingly, Schiff’s current list of stock recommendations is heavily embedded in gold. The prices of gold have jumped over 20% so far this year, driving strong stock gains throughout the industry.
The largest holding in Schiff’s gold fund is Franco Nevada Corp (FNV 0.96%), a Canadian-based owner of gold royalties and natural resource investment. The fund’s second-largest holding is of gold miner Agnico Eagle Miners (AEM 0.09%)
Similarly, four of the top five holdings in EuroPac’s International Value Fund are Gold miners. All these stocks have done well, but looking at a slightly longer time horizon, they have trailed alternative Investments.
As per Associated Press, Schiff’s Euro Pacific International Bank was granted an operating permit in 2017. However, it has since run into trouble after deposits dropped to the $150 million mark. Two years ago, the Joint Chiefs of Global Tax Enforcement, which is a government-run anti-tax crime and money laundering unit, stepped in “to put a stop to the suspected facilitation of offshore tax evasion and money laundering,” Schiff said that he would fight to save his ailing business. He said. “It costs a fortune to run a small bank. That’s why I never really made any money. The compliance costs are outrageous.” Some Bitcoiners replied to him, “Bitcoin fixes this” Another explained, “Regulators can’t close, shut down or freeze your Bitcoin.”
However, in a recent BTC-themed tweet, Schiff claimed, “These bargain hunters averaging down will eventually be known as bag holders.” Words like these have alienated many Bitcoiners. However, many in the space regard Schiff as a harmless and sometimes amusingly eccentric. At the very least he’s a villain the crypto world can rally around.
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