With the surge in the price of gold, economist and gold advocate Peter Schiff posted on social media platform X, saying:"Golden stock investors overlook an important point, which is that the price of gold does not need to continue to rise for the stocks of golden minerals to soar." He further points out that even if the gold price remains at its current level, the stocks of golden minerals will still rise significantly. Schiff believes that the price of gold will not remain stagnant at the current level, making golden stocks a "sweet treat" in the eyes of many investors.
The gold trading price has reached a historical high, exceeding $2,530. This led to the VanEck Gold Miners ETF, a prestigious precious metals ETF, hitting a new high in 52 weeks and breaking a historical high set over a month ago. Schiff noted that the Vaneck Junior Gold Miners ETF (GDXJ), which focuses on small-scale golden mining companies, still needs to rise by 1.8% to reach the new high in 52 weeks. Despite achieving such remarkable results, most stock investors remain skeptical about the future rise of these types of stocks.
The VanEck Gold Miners ETF (GDX) is a stock fund that serves as a key benchmark for the gold mining industry stocks, commonly used to track the performance of medium and large-sized companies in the golden minerals industry. On the other hand, the Vaneck Junior Gold Miners ETF (GDXJ) focuses on smaller-scale junior golden mining companies.
On Monday, Schiff also mentioned that the gold price has closed above $2,500 for two consecutive days, with many gold mining stocks hitting a 52-week high. He confidently stated, "The stage is set for a big bull market," predicting that the precious metals mining industry will not only perform well for the remainder of this year but also over the next decade.
On Tuesday, Schiff stated that investors need to pay attention to the continuously declining USD index. With the gold price hitting a historic high, the USD index touched a 7-month low. He warned that these market signals indicate that the Federal Reserve might make a significant policy mistake by cutting interest rates prematurely, which could be just the latest among many policy errors, leading to a market collapse.
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