The gold price is not behaving like a safe-haven asset and it is bringing out the worst in some people, including Bitcoin-hater Peter Schiff. The Euro Pacific Capital CEO took to Twitter for a childlike rant about the current market meltdown that is unfolding across asset classes.

At last check, the gold price is down more than 4% and is barely hanging onto $1,500 in the hours after the Federal Reserve slashed interest rates the second time in just about as may weeks. Of course, gold’s rival store-of-value asset Bitcoin hasn’t performed any better and has yet to find a bottom after seeing its value about slashed in half over the last week, with the dip below $5,000 having occurred overnight.

In a move that can be compared to biting the hand that feeds you, Schiff blamed what he described as “clueless” investors for the gold price decline, saying that they don’t know what is coming and comparing them to monetary policymakers. But all hope is not lost, as he envisions a scenario in which investors will come to their senses, in which case the precious metal will resume safe-haven status and “skyrocket.”

Bitcoin Basher

Of course, Schiff couldn’t resist using his soap box as an opportunity to take yet another swipe at Bitcoin. And while it’s difficult to defend the cryptocurrency during this latest market rout, cryptocurrency investors are a resilient bunch, not to mention the fact that this market downturn is not their first rodeo.

Source: Twitter

Nonetheless, refusing to coexist with the “digital gold,” Schiff marveled at the fact that Bitcoin hasn’t dropped more than it already has, by which he appears to be dumbfounded. Schiff proceeded to taunt the cryptocurrency community, stating,

“Though gold is down 4% and Bitcoin is down 15%, one Bitcoin still buys three ounces of gold. That’s a great exchange rate. Hodlers had better act quick or they will miss their chance.”

Where’s the gold?

BlockTower Capital CIO Ari Paul was quick to challenge Schiff, reminding him about the 2008 market meltdown in which the price of gold plummeted from $1,000 an ounce to $775 – incidentally in response to the infamous Lehman Brothers bankruptcy on Wall Street. [Gold Republic] As fate would have it, some are comparing today’s gloomy sentiment to the time of Lehman’s collapse.

Bitcoin was just a twinkle in Satoshi Nakamoto’s eye at the time. Meanwhile, gold didn’t behave like a safe-haven asset then and it is not acting like one now, either.

Schiff isn’t buying it, however. He calls the 2008 financial crisis a “cakewalk” compared to the state of the economy today, stating in a follow-up tweet:

“All that happened in 08 was real estate prices fell, borrowers defaulted, and lenders lost money. Today global commerce is grading to a halt. Production is shutting down. This crisis is economic, not merely financial.”

Always the doom-and-gloomer, Schiff describes a world in which the world has fewer goods as a result of global trade coming to a standstill but an oversupply of fiat money, thanks to the central banks around the world printing more money. He adds,

“Then imagine that none of the dollars the Fed prints are exported. Without goods to buy cash has no value.”

Whether he realizes it or not, Schiff just made the argument for Bitcoin.

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