Economist and gold advocate Peter Schiff claims that the explosive bull market for gold is just the beginning, predicting a historic price surge driven by lurking inflation and economic instability.
Peter Schiff: The gold bull market has reached record highs — But this is just the beginning
Economist and gold advocate Peter Schiff highlighted the impressive gains of gold in 2024, reaching a record high on Tuesday. He wrote on the social media platform X: "Gold closed at a record high above $2,775, on track for the best year since 1979." Schiff added, "The difference is that in 1979, inflation was nearing its peak and the gold bull market was nearing its end, whereas currently inflation is nearing its bottom," emphasizing:
The bull market for gold has only just begun.
Comparisons to 1979 are significant: that year, gold soared amid rampant inflation, the Iranian Revolution, and the Soviet invasion of Afghanistan, with prices rising from $226 to $500 by the end of the year.
This drives the demand for gold, with prices ultimately peaking at $850 in early 1980, equivalent to about $2,800 today when adjusted for inflation. However, the bull market of 1979 soon ended when the Federal Reserve raised interest rates to curb inflation.
In 2024, the momentum of gold is driven by economic instability, central bank buying activity, and geopolitical risks, especially in the Middle East. The Federal Reserve's expected interest rate cuts and central bank demand have further supported gold prices, which are on track for a historic year. Some analysts predict prices will range from $2,500 to $3,000 by the end of the year.
In another post on X Tuesday, Schiff expressed his views:
Gold prices rising and bond yields not being part of the Trump trade. Regardless of the election outcome, the rising budget deficit and inflation are very negative for bonds and bullish for gold. Therefore, even if Trump loses, gold prices and bond yields will continue to rise.
Schiff has hinted at a "mother of all gold bull markets," citing inflation and the devaluation of fiat money as factors that could push prices much higher. Earlier this month, he stated that gold could reach $26,000 or even $100,000. He continues to advocate for the metal, recently stating that "investors have not yet noticed the bull market or added mining stocks to their screens," emphasizing his belief that the gold bull market has only just begun.