Gold could have its best year since 1979

Economist and gold advocate Peter Schiff has posted several times on X this week highlighting the rise in gold prices and discussing the economic factors affecting gold and related stocks. "Gold is experiencing one of its best years ever, up more than 26%, on track to surpass the 32% gain in 2007," he said on Friday. Gold prices soared after the Federal Reserve cut interest rates by 50 basis points on Wednesday, the first rate cut in more than four years. He also said that gold "is going to have its best year since 1979, when it rose 126%." Schiff also pointed out that despite the strong performance of gold prices, many traders will quickly sell gold mining stocks as soon as they fall back slightly. "If a $40 increase in gold prices causes gold mining stocks to rise 2%, then a $5 drop in gold prices will cause mining stocks to lose half of their gains." He added: "So far, gold prices have risen by more than $540 in 2024, which is the largest dollar gain in history. In fact, this happened in a year when the national debt soared and the Federal Reserve cut already low interest rates-even though inflation was well above the 2% target and trending upward, which is no coincidence."