Gold bull market surges amid weak sentiment

Economist Peter Schiff has emphasised that the current gold bull market is the strongest in history, with gold prices reaching unprecedented levels above $3,000 per ounce.

Despite this surge, investor sentiment remains surprisingly weak, with Schiff noting that gold mining stocks are undervalued and poised to outperform Wall Street's earnings expectations.

Schiff's assertion that this is the strongest gold bull market ever is supported by a 600% increase in gold prices over the past two decades, significantly outpacing major stock indices like the NASDAQ and SP 500.

However, he warns that investors are sceptical, leading to an unexpected decline in gold mining stocks despite their potential for profitability.

Schiff attributes gold's resilience to its role as a safe-haven asset during economic uncertainty and geopolitical tensions.

He believes that gold will continue to rise, especially if the U.S. dollar weakens further.

"Gold has been rising despite the dollar’s strength. Plus the U.S. dollar is far more likely to weaken," Schiff noted on social media. 

In contrast to gold, Schiff remains bearish on Bitcoin (CRYPTO:BTC), predicting significant price drops if the stock market enters a bear phase.

He suggests that Bitcoin could fall below $20,000 if the NASDAQ experiences a substantial decline.

Schiff argues that Bitcoin lacks the stability and store-of-value characteristics that gold possesses, making it less appealing during economic turmoil.

Schiff's analysis also highlights the disparity between stock market performance measured in dollars versus gold.

He points out that when priced in gold, the SP 500 has experienced a historic bear market since 2000, underscoring gold's superior value retention.