Wall Street Tycoon Explains: This Is Why Gold Prices Are Rising! Warns Bitcoin is a "Huge Bubble"

News Agency (Asia-Pacific) reports that Wall Street tycoon and gold bull, Peter Schiff, has explained the reasons behind the rising prices of gold and has warned that Bitcoin is a "huge bubble".

Peter Schiff, CEO and Chief Global Strategist at Euro Pacific Asset Management, shared his insights on the rising gold prices and cautioned against investing in Bitcoin and Bitcoin spot exchange-traded funds (ETFs).

In an interview with Fox Business on Monday, Schiff stated, "Gold is rising because fiat currencies like the US dollar, euro, and yen are depreciating. Inflation is real and persistent. It's far from the Federal Reserve's target of 2%. We are heading in the wrong direction."

He emphasized, "Central banks are leading the way. They are the main buyers of gold."

Gold has shown strong performance over the past few weeks. Last week, spot gold prices soared to a record high of $2431.50 per ounce.

As a safe-haven asset, the demand for gold by investors and central banks has increased amid global economic uncertainties and worsening geopolitical tensions.

Schiff also commented on investors selling gold to buy Bitcoin or Bitcoin spot ETFs.

He said, "Many Americans have foolishly been selling gold to buy these Bitcoin ETFs. Bitcoin is not going to rise. In fact, Bitcoin peaked at 37 ounces of gold two and a half years ago. Now, it's worth less than 27 ounces of gold. That's a 27% decrease over two and a half years. It's a bear market. Bitcoin prices will be much lower than this level."

When the host suggested that Bitcoin has clearly outperformed gold, Schiff exclaimed, "Bitcoin has outperformed everything, so don't compare it to gold. It has outperformed stocks, real estate, bonds, and collectibles."

He quickly clarified, "That's because it's a huge bubble."

Schiff has been critical of Bitcoin and Bitcoin spot ETFs. In February, he also warned that Bitcoin ETFs might be in a bubble and predicted that Bitcoin prices would plummet while gold prices soared. At the time, he also cautioned that Bitcoin might see significant sell-offs and expected a substantial decline in Bitcoin prices.

Veteran investor Peter Brandt recently challenged Schiff's claims about gold outperforming Bitcoin.

He said, "Come on, Peter, look at it from a broader perspective. I also love gold—I hold a lot of gold—but which asset has performed better since the inception of Bitcoin?"