Peter Schiff, CEO of Euro Pacific Capital Inc., and Matt Smith, Commodity Analyst at Schneider Electric (EPA:SU) appeared on CNBC on August 5 to discuss the outlook on gold and energy prices.

Schiff said “A lot of shorts have come into the market. Speculative longs have exited based on three false narratives. One, the US economic recovery is gathering momentum. I think the reverse is true. I think we’re relapsing back into recession.”

Schiff continued, “Number two, a lot of people belief the fed is getting ready to taper off on its quantitative easing. I think it’s the opposite. I think the fed is preparing to increase the monthly size of [quantitative easing].

For his last point, Schiff claims “People think inflation is not a concern,” speculating that it will worsen.

Schiff speculates, “A lot of the gold that was sold on the way down, won’t be available on the way up. I think you’re going to get a huge spike in prices.”

In regards to inflation, Schiff claims that GDP growth is much lower than reported, citing that annualized inflation was reported to be too low, “there is no way inflation is that low. There’s no way growth is high as 1.7,” said Schiff.

Smith said he sees oil rising in the next month. “If we do see any increase in violence in [Bahrain and Yemen], their proximity to Saudi Arabia could spike oil prices higher.”

Watch the full segment in the video above.