FameEX Hot Topics | Peter Schiff Forecasts Gold Mining as Top Sector This Decade, Predicts 'Major Bull Market'

This week, economist and gold advocate Peter Schiff shared his insights on gold, gold mining stocks, and the Federal Reserve's actions on the social media platform X, amid a surge in gold prices.

Schiff pointed out that gold stock investors might be overlooking a key detail: "Gold doesn’t have to keep going up for gold stocks to rise," he said on Monday. He further explained that even if gold stays at its current price level, gold stocks should still see significant gains. However, Schiff believes that gold prices are unlikely to remain low for long, making gold mining stocks an attractive investment.

Schiff noted that gold had reached a new record high, surpassing $2,530. This rise helped the Vaneck Gold Miners ETF (GDX) achieve a new 52-week high, surpassing the previous high set just over a month ago. He also observed that the Vaneck Junior Gold Miners ETF (GDXJ), which tracks smaller gold mining companies, still needs to rise by 1.8% to reach its own 52-week high. Despite these positive developments, Schiff highlighted that many stock investors remain skeptical of the rally.

The Vaneck Gold Miners ETF (GDX) serves as a key benchmark for the performance of large and mid-cap companies in the gold mining industry. Meanwhile, the Vaneck Junior Gold Miners ETF (GDXJ) focuses on smaller, junior mining companies.

On Monday, Schiff also mentioned that gold had closed above $2,500 for two consecutive days, with many gold mining stocks hitting new 52-week highs. He confidently predicted, "The stage is set for a major bull market," and suggested that precious metals mining will be the best-performing sector for the rest of the year and possibly the entire decade.

On Tuesday, Schiff commented on the declining Dollar Index, which had reached a 7-month low as gold hit record highs. He warned that these market indicators suggest the Federal Reserve may make a significant policy mistake by cutting interest rates too soon, continuing a trend of consistent policy errors. Last week, Schiff argued that the Fed should raise interest rates, even if it risks triggering market crashes.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.