Peter Schiff On Fast Money

Peter Schiff said on Fast Money that he believes gold is going to go significantly higher in both the short term and the long term. He also said that Chinese monetary tightening is going to weaken the dollar and that the Chinese will stop buying treasuries.

Peter Schiff has advocated a long gold, short dollar, long emerging markets, and long commodities trading strategy for well over two years. If you listened to him during this period of time, you have done very well. These trends are starting to come under pressure, however. The careful play is to lighten up on all of these positions. I think, however, that an argument can be made for pressing these trades (if you already have significant profits) and going for a grand slam. Schiff, and many others, make a compelling fundamental case for continued long term trends in these assets classes.

The traders also talked about Freeport-McMoran (NYSE: FCX) which took a beating this week on fears that the Chinese economy will begin to slow down as their interest rates rise. Joe Terranova said that he would be a buyer on a continuing pull back and is long the stock.