Peter Schiff, economist and known gold bug, believes that the price uptick that gold is currently experiencing will extend in the future, surprising stock traders. Schiff stated that gold stocks were the new tech stocks and that Wall Street’s indifference regarding these would lead to massive market capitulation.
Peter Schiff Warns of Gold Rally: ‘It’s Real’
Peter Schiff, the chief economist of Europac and gold permabull, believes that a gold bull market brewing will take the precious metal to even higher prices than it reached. Motivated by the recent breakout that took gold prices to break the $2,000 mark on April 4, Schiff stated:
Senior miners still need to rise by over 20% and juniors by over 25% to hit new 52-week highs. The divergence is due to negative sentiment. Investors still don’t believe the rally is real. It’s real and will be spectacular.
Schiff had warned about this breakout before, also stating that other inflation hedges, including bitcoin, would come down with precious metals going up in price instead. Schiff also profiled gold stocks as the new tech stocks, warning investors to “either prepare for this new reality or suffer the consequences.”
‘Capitulation Will Be Epic’
Schiff details the dynamics that gold and gold-related stocks face in Wall Street markets, often being ignored by investors who prefer other alternatives. He believes that Wall Street has a bearish bias on gold-related stocks that will affect it in the long term. He declared:
When gold prices are low they don’t want to buy gold stocks as they think gold prices will fall lower. When gold prices are high they don’t want to buy gold stocks as they expect prices to sell off. Capitulation will be epic.
Several analysts have tried to explain the rush in gold prices that the market is currently facing. On March 18, TD Securities’ global head of commodity strategy Bart Melek told that the expected upcoming dovish policies of the U.S. Federal Reserve were beneficial to gold prices.
In the same way, Jan van Eck, CEO of investment management firm Vaneck, established a relation between the progressive abandonment of the U.S. Federal Reserve tightening policies and growth in the interest of gold and bitcoin. “We are at the very beginnings of what could be a several-year cycle in gold, and I also put bitcoin in that category as well,” he stated in an interview with CNBC on March 27.
What do you think about Peter Schiff and his predictions for the gold market? Tell us in the comment section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Be the first to comment