Schiff: Rising Yields Are 'Most Beneficial for Gold', Warns of 9% Mortgages
Peter Schiff said in an interview with Kitco that rising bond yields serve gold, warning that US mortgage rates could reach 9% and home prices could drop between 30% and 50%.
In an interview with Kitco, Peter Schiff stated that rising bond yields represent 'the most bullish thing for gold,' contrary to the common reading that views rising yields as a pressure factor on the yellow metal.
Schiff warned that continued yield increases could push US mortgage rates to 9 percent, with home prices dropping between 30 and 50 percent, directly linking the trajectory of interest rates to the real estate sector.
He added that he holds a larger portion of his money in gold mining stocks compared to the physical metal itself, a comparison highlighting his bet on the price leverage these stocks offer when the metal rises.
These are Schiff's personal views expressed in the interview, published as attributed to him in his capacity as an investor and not in any official capacity.
What do these terms mean?
Bond Yield: The percentage a bondholder earns relative to its current price, which rises when bond prices fall in the market.
Mortgage Loans: Long-term real estate loans obtained by buyers to finance a home purchase, with interest rates linked to bond yields.
Mining Stocks: Shares of gold mining companies, which typically move at a stronger pace than the price of the metal itself, both up and down.
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