Economist Peter Schiff predicts that the rising value of gold will keep going up, shocking stock traders. He is saying that gold stocks are similar to tech stocks and Wall Street is not taking them seriously enough yet. This could lead to a dramatic decrease in the stock market soon.
Hit the Gold Rush
Peter Schiff, an economist who supports gold, predicts that gold prices will keep going up. On April 4th, gold reached the highest price anyone had ever seen it at – above $2,000 per ounce. He expects it to get even higher than that.
For certain stocks to reach their highest value compared to the last year, big companies need to increase by at least 20% and smaller companies by at least 25%. People don’t think this will happen because they’re not sure if this rally (a fast rise in stock prices) is actually going to happen. However, it will happen and be amazing when it does!
Peter Schiff had said before that in order to protect yourself from things like inflation, you should buy gold and other related things. He also said that now would be the time to invest in gold-related stocks, which he compared to buying tech stocks a while ago – if you don’t do it soon, then you’ll miss this opportunity!
Wall Street’s Negative View on Gold-Related Stocks
Schiff describes the way that gold and stocks related to it are treated on Wall Street, which is being ignored by most investors who go for other options. He considers that Wall Street has a negative view on gold-related stocks that will influence it in the future. He said:
When the prices for gold are low, people don’t want to buy stocks since they think the price will fall even lower. On the other hand, when the prices for gold are high, people also don’t want to buy stocks since they anticipate that the price might drop soon. In either case, a lot of people will end up selling what they have.
Experts who research money have been trying to figure out why gold prices are going up. On March 18th, Bart Melek (an important person in the world of money) said that the United States Federal Reserve is likely about to do something that will help increase the cost of gold.
Jan van Eck, the CEO of investment management firm Vaneck, noticed a connection between the US Federal Reserve stopping their tough policies and increased interest in gold and bitcoin. In an interview on March 27th he said “We might be just starting a several year cycle with both gold and bitcoin”.
Do you have an opinion about Peter Schiff and what he thinks will happen with the market for gold? Let us know by commenting below.