Economist and gold bug Peter Schiff believes the current surge in gold prices will continue, surprising stock traders. Schiff predicted that gold stocks would be the new tech stocks, and that Wall Street’s apathy to these stocks would spark massive capitulation.
Peter Schiff Foresees a Gold Rally: ‘It’s Real’
Peter Schiff, the chief economist of Europac and long-time gold bull, believes that the bull market for gold will take it to even higher prices. Inspired by the recent break-out that drove gold prices to break the $2,000 mark on April 4, Schiff declared:
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 previously warned of this breakout, also noting that other inflation hedges, including bitcoin, would suffer as a result of rising gold prices. Schiff also highlighted gold stocks as the new tech stocks, warning traders to “either prepare for this new reality or suffer the consequences.”
‘Change Is Coming, It Will Be Epic’
Schiff explains the dynamics that gold and gold-related stocks face in Wall Street markets, often being disregarded by investors who lean towards other alternatives. He believes that Wall Street has a bearish bias on gold-related stocks that will impact it in the long run. He stated:
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.
A few analysts have tried to explain the current gold price rush. On March 18, TD Securities’ global head of commodity strategy Bart Melek pointed out that the upcoming dovish policies of the US Federal Reserve were buoying gold prices.
Likewise, Jan van Eck, CEO of investment management firm Vaneck, connected the abandonment of US Federal Reserve tightening policies and the rising interest in 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 said in an interview with CNBC on March 27.
What do you think about Peter Schiff and his predictions for the gold market? Share your thoughts in the comment section below.
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