Economist Peter Schiff, known as the gold bug, believes the price increases gold is experiencing now will continue into the future and surprise stock traders Schiff believes gold stocks are the new tech stocks, and if Wall Street is indifferent to these, it will lead to market upheaval, he said.
Peter Schiff warns the gold rally “is real”
Peter Schiff, chief economist and gold permabull at Europac, believes that if a gold bull market erupts, the precious metal will go even higher than the prices reached.Spurred by the recent breakout on April 4, when the gold price broke above the $2,000 mark, Schiff stated:
Senior miners still need to rise more than 20% and junior miners more than 25% to reach 52-week highs. This divergence is due to negative sentiment. Investors still do not believe the rally is real. It is real and will be spectacular.
Schiff has been warning about this breakout for some time, stating that other inflation hedges, including bitcoin, will fall and precious metals will rise in value instead. Schiff also introduced gold stocks as the new tech stocks, warning
investors to “prepare for this new reality or suffer the consequences.”
29}”Surrender will be epic.”{/netabare}
Schiff details the dynamics that gold and gold-related stocks face in the Wall Street market, often ignored by investors who prefer other options. He believes that Wall Street has a bearish bias toward gold-related stocks, which he believes will have long-term consequences. Hedeclared:
when the gold price is low, they don’t want to buy gold stocks because they think the gold price will fall more. When the gold price is high, they do not want to buy gold stocks because they believe the gold price will sell off. The capitulation will be spectacular.
Several analysts are trying to explain the surge in gold prices that the market is currently facing: on March 18, Bart Melek, Global Head of Commodity Strategy at TD Securities, said that the expected dovish policies of the Federal Reserve would be beneficial for the gold price.
Similarly, Jan van Eck, CEO of investment management firm Vaneck, established a link between the gradual abandonment of the Federal Reserve’s tightening policies and growing interest in gold and bitcoin. In an interview with CNBC on the 27th, he said, “We are at the very beginning of a multi-year cycle for gold, and I put bitcoin in that category as well.”
What do you think of Peter Schiff and his predictions about the gold market? Let us know in the comments section below.
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