(Kitco News) - Longer-term, gold prices are headed much higher than current levels and could even go to $5,000 an ounce, this according to Peter Schiff, CEO of Euro Pacific Capital.

"I do think that this is the beginning of the breakout of the consolidation that we've been in for the last several years, but ultimately I think gold's going to go quite a bit higher than $5,000," Schiff told Kitco News.

Gold's move upwards can be attributed to monetary policies around the world, Schiff said.

It is the monetary policies and the mistakes that are being made not just by the Federal Reserve but by central banks all around the world that is driving the narrative for gold because gold is an alternative to all these money substitutes,

Governments around the world are creating inflation and supporting asset bubbles by spending money they don't have, Schiff noted, and this creates tailwinds for gold.

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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.