Economist and longtime gold advocate Peter Schiff says gold is having one of its strongest years in decades, arguing that the metal is on pace for its best annual performance since 1979. In a series of posts on X, Schiff said gold is up more than 26% in 2024 so far, with a year-to-date gain of more than $540, which he described as the largest dollar increase in its history.
Rate Cut Adds Momentum to Gold
Schiff linked the latest leg higher in gold to the Federal Reserve’s decision to cut interest rates by 50 basis points, the central bank’s first reduction in more than four years. He argued that gold’s rally is unfolding against a backdrop of rising national debt and inflation that remains above the Fed’s 2% target, suggesting the move is part of a broader macroeconomic repricing rather than a random market swing.
Mining Stocks Still Trail the Metal
While gold has posted major gains, Schiff said the equity side of the trade has not fully caught up. He pointed to the Vaneck Gold Miners ETF, traded under the ticker GDX, noting that it is up only about 31%. In his view, that gap shows many investors have still not fully recognized the gold bull market or meaningfully added mining shares back to their watchlists.
He also criticized how quickly traders sell gold-mining stocks on even minor pullbacks in bullion. Schiff argued that if a $40 rise in gold only produces a 2% gain in mining stocks, then a $5 drop can erase half of those gains. To him, that reflects a market that remains cautious despite gold’s strong momentum.
Macro Concerns Remain Central
Schiff’s comments frame the rally as a response to persistent macro pressures, including debt expansion, lower interest rates, and inflation concerns. Although he remains firmly bullish on gold, the relatively muted performance of mining stocks suggests that investor participation in the broader theme is still uneven.