Economist and gold advocate Peter Schiff shared his views in multiple posts on social media platform X this week, highlighting the rise in gold prices and discussing
Economist and gold advocate Peter Schiff believes that gold is set to have its best year since 1979. In his recent posts on social media, Schiff highlighted that gold is up over 26% this year, putting it on track to beat 2007's 32% rise.
“It’s set to have its best year since 1979 when it rose 126%,” he noted.
Schiff's comments come after the Federal Reserve cut interest rates by 50 basis points on Wednesday, in response to slowing economic growth and persistent inflation. The last time the Fed cut interest rates was in 2019.
Gold prices rose sharply after the Fed's announcement, with spot gold briefly touching the $2,020 level on Thursday. However, Schiff believes that gold is still undervalued, given the economic fundamentals.
“Gold is having one of its best years ever, yet the GDX is only up 31%. That means investors still haven’t noticed the bull market or added mining stocks to their screens,” he explained.
The GDX ticker symbol is for the Vaneck Gold Miners exchange-traded fund (ETF), which tracks the performance of companies involved in gold mining and related industries.
Schiff also pointed out that many traders quickly sell gold mining stocks at the slightest pullback. “If a $40 rise in gold results in a 2% rise in gold mining stocks, a $5 pullback in gold results in mining stocks losing half their gains,” he added.
“Gold is up over $540 so far in 2024, its largest dollar gain in history,” Schiff noted in a follow-up post on Friday. “The fact that it’s happening in a year with a soaring national debt and the Fed cutting already low interest rates despite inflation being well above its 2% target and heading higher is not a coincidence.”
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