In his podcast, Peter Schiff put the big rally and subsequent selloff into perspective, talked about what's next, and discussed how investors can best position themselves for subsequent moves.
Gold surged to a new record high of $2,135 early Sunday morning. Peter called the move "very significant."
Gold is an important monetary metal and the fact that it traded at its highest US dollar price in the history of the country is a significant thing that happened that a lot of people are dismissing."
Then on Monday, there was a sharp selloff. Gold dipped around $100, falling to around $2,020.
Obviously, there was some profit-taking. Some speculators that had correctly anticipated a gold rally, well, they took advantage of that rally and they sold. I mean, that's what traders do. They make a bet and then they cash in. And so when you get a gap up in the night, that's generally what a trader is going to do. They're going to take their winnings and book the gains."
Peter said he thought some short sellers decided to take a shot that gold was overbought short term.
Some people think the sudden selloff was due to "manipulation." Peter addressed that possibility.
I'm not subscribing to the theory that there is an organized plot to manipulate the price of gold. But I certainly recognize that it's within everybody's interest to suppress the price of gold. Certainly, it's in the government's interest. It's in Wall Street's interest."