Gold's Strong Performance and its Impact on Mining Stocks: Peter Schiff's Insights

Economist and gold advocate Peter Schiff has repeatedly highlighted gold's price gains on X this week, discussing economic factors influencing both the precious metal and related equities. He stated on Friday, “Gold is on track for one of its best years ever, rising over 26% and poised to surpass its 2007 gain of 32%.” The precious metal surged after the Federal Reserve cut interest rates by 50 basis points on Wednesday, marking the first cut in over four years. He further remarked, “Gold is set to have its best year since 1979 when it rose 126%.”

Despite gold's strong performance, Schiff pointed out that many traders quickly sell off gold mining stocks on any slight pullback. "If gold goes up $40 and gold miners go up 2%, then gold drops $5, and miners lose half their gains,” he added. “To date, gold is up over $540 in 2024, the biggest dollar advance ever. The fact that this is happening in a year when national debt is surging and the Fed is cutting rates that are already very low - despite inflation well above the 2% target and trending higher - is not a coincidence." (Bitcoin.com)