Investors may be feeling uneasy as stocks struggle amid ongoing trade tensions and tariffs. But according to economist Peter Schiff, one asset is standing out amid the uncertainty: gold.
“Today marks a monumental moment in gold history as the spot price closes above [US]$3,000 an ounce. Despite the media’s silence, this development is significant,” Schiff wrote on Instagram on March 17. As of now, the price of gold per ounce in Canada hover around CA$4,600.
Despite gold’s 40% surge over the past year, Schiff believes the rally is just getting started.
“While central banks stockpile gold, retail investors have a unique opportunity to capitalize. With gold expected to rise to [US]$4,000 and beyond, now is the perfect time to invest,” he wrote.
In 2024, central banks added 1,045 tonnes to global reserves, marking the third consecutive year of net purchases exceeding 1,000 tonnes, according to the World Gold Council.
For Schiff, central bank buying isn’t just about portfolio diversification — it’s a warning sign.
‘Dumping dollars to buy gold’
Many investors turn to gold as a hedge against inflation, since, unlike fiat currencies, it can’t be printed at will by central banks.
Schiff argues that central banks’ growing appetite for gold signals something deeper.
“Investors haven’t even woken up to what central banks are doing, but the central bankers are the insiders of the fiat monetary system,” he said. “The insiders in the fiat monetary system have been dumping their dollars to buy gold. They obviously know something, and the public hasn’t caught on yet.”
So, what do they know that retail investors don’t?
Schiff believes it’s simple: inflation isn’t going away.
“Investors haven’t woken up to the reality of high inflation," he stated. “Inflation isn’t going anywhere near that. In fact, it’s already bottomed out and is headed much higher — none of that has really been priced into gold yet.”
So, just how high can gold prices go?
“If gold can go from $20 an ounce to $2,600 an ounce, it can go from $2,600 to $26,000, or even to $100,000. There’s no limit because, again, gold isn’t changing — it’s the value of the dollar that’s decreasing,” he said in October 2024.
1 income-producing alternative
Gold has long been a go-to hedge against inflation. But it’s not the only option. Real estate has also served as a reliable store of value, with the added benefit of generating income.
When inflation rises, property values often increase in tandem, reflecting the higher costs of materials, labour and land. At the same time, rental income tends to climb, providing landlords with a revenue stream that adjusts for inflation.
However, for some, owning property may not be financially viable, which is where Real Estate Investment Trusts (REITs) come in.
REITs offer regular dividend income, diversification and exposure to different real estate sectors. In Canada, REITs trade on the Toronto Stock Exchange (TSX), making them easy to buy and sell like stocks. They’re required to distribute most of their taxable income to shareholders as dividends, making them attractive for income-focused investors.
There are nine types of REITs that are available to interested Canadian investors, which include:
- Equity
- Residential
- Retail
- Industrial
- Office
- Healthcare
- Hospitality
- Mortgage
- Private
However, REITs can be sensitive to market cycles, interest rates and economic conditions. Before investing, consider your financial goals and risk tolerance.
Sources
1. Gold Broker: Gold Price in Canadian Dollar – Canada
2. World Gold Council: Gold Demand Trends: Full Year 2024 (Feb 5, 2025)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
