Euro Pacific's Schiff: 'Spectacular' Rally in Gold Ahead

Schiff, who launched a gold-mining mutual fund last month in the teeth of a two-year decline in prices of the precious metal, told Yahoo Breakout he is sticking with his bullish position even it is a lonely one. “I think everything supports the fact this is yet another buying opportunity in a string of buying opportunities,” he said. “In fact, I think this may be the best buying opportunity yet.

Schiff said he was undeterred by the fact that, according to Yahoo Breakout, other fund managers cut their net long positions in gold by 27 percent last week alone.

“I welcome the fact a lot of fair-weather gold bulls have abandoned their positions,” he said. “Physical gold is disappearing and ultimately the short sellers have to be able to deliver the commodity they are selling short, and they’re not going to be able to do that.”

Gold prices have declined about 35 percent in the past two years, and prominent hedge fund managers such as George Soros have sold their positions.

“It’s going to be a spectacular rise when these forces try to work themselves back out,” Schiff predicted. “Historically, the smart move has been to buy bear markets, not to sell them.”

Read More: www.moneynews.com/StreetTalk/Schiff-Spectacular-Rally-Gold/2013/08/25/id/522127