gold

Economist and gold advocate Peter Schiff announced that the explosive rise in gold is just the beginning. He predicts a historical rebound driven by imminent currency inflation and economic turmoil.

Peter Schiff: Bullish trend in gold sets a new historical high — but this is just the beginning

Economist and gold advocate Peter Schiff emphasized the astonishing gains in gold in 2024, reaching a historic high on Tuesday. He wrote on social media platform X: "Gold closed at a historic high, surpassing $2,775, marking the best year since 1979." Schiff added: "The difference is, in 1979, inflation was approaching its peak, the gold bull market was nearing its end, while current inflation is approaching a low point," he emphasized:

The gold bull market is just getting started.

The comparison with 1979 is significant: in that year, amidst rampant inflation, the Iranian Revolution, and the Soviet invasion of Afghanistan, gold soared. By the end of the year, gold prices rose from $226 to $500. This drove demand for gold, with prices eventually reaching a peak of $850 early in 1980, equivalent to about $2,800 today after inflation adjustments. However, as the Fed raised interest rates to curb inflation, the bull market of 1979 quickly came to an end.

In 2024, economic uncertainty, central bank purchases, and geopolitical risks have fueled the rebound in gold, especially in the Middle East. The expected rate cuts by the Federal Reserve and central bank demand further supported the price of gold and now it is in a historical year. Several analysts predict that by the end of the year, prices will be between $2,500 and $3,000.

In another article on X Tuesday, Schiff expressed his opinion:

The rise in gold prices and bond yields is not part of Trump's trade. Regardless of the election results, budget deficits and inflation rates will rise, bonds are very bearish, and gold is bullish. Therefore, even if Trump loses, gold prices and bond yields will continue to rise.

Schiff proposed a 'mother of all gold bull markets,' citing factors such as inflation and devaluation of fiat currencies, which could drive prices significantly higher. Earlier this month, he mentioned the possibility of gold reaching $26,000 or even $100,000. He continues to advocate for metals, recently stating that 'investors still haven't paid attention to the bull market or added mining stocks to their screens,' emphasizing his belief that the gold rebound is just beginning.