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Gold is in its strongest bull market ever, yet investor sentiment remains weak, Peter Schiff warns, arguing gold mining stocks are undervalued despite the metal’s historic surge.
Peter Schiff: Investors Are Ignoring the Strongest Gold Bull Market in History
Economist and gold advocate Peter Schiff highlighted the unprecedented strength of the gold market on social media platform X on March 20. He stated:
This is the strongest gold bull market in history, yet it has the weakest sentiment in history.
Despite gold surpassing $3,000 per ounce, Schiff pointed out that investors remain skeptical, leading to an unexpected decline in gold mining stocks. He dismissed concerns over minor price fluctuations, arguing that a small drop, such as from $3,035 to $3,028, should not justify a selloff in mining stocks, which he believes remain undervalued even if gold were to fall significantly.
Schiff also addressed gold’s resilience in the face of a strong U.S. dollar and suggested that the currency is likely to weaken further:
Gold has been rising despite the dollar’s strength. Plus the U.S. dollar is far more likely to weaken.
The economist emphasized that as long as gold stays near $3,000, gold mining stocks should outperform Wall Street’s earnings expectations. According to Schiff, investors are failing to recognize the potential profitability of these assets, making them a compelling opportunity despite market hesitancy.
Beyond gold’s immediate price movement, Schiff analyzed the broader financial landscape, arguing that traditional stock market metrics fail to account for inflation. He stated:
Pricing stocks in real money adjusts prices for actual inflation. Since Dec. 31, 2000, the S&P is down 60% priced in gold. It’s a historic bear market.
Schiff’s analysis suggests that when measured against gold, stock market performance is significantly weaker than it appears in dollar terms. His remarks reinforce his long-standing view that gold is a superior store of value, particularly in times of economic uncertainty.