In a recent critique of mainstream financial media, Peter Schiff criticized CNBC for its excessive attention on Bitcoin and the newly launched Bitcoin ETFs, overlooking significant developments in the gold market. Despite Bitcoin grabbing headlines, Schiff contends that a substantial $43 rise in gold prices and the record-breaking price of the gold ETF, GLD, were largely overlooked.
Gold’s recent surge to a two-month high, climbing nearly 1.5%, came as U.S. factory data disappointed and consumer sentiment dipped, prompting speculation of imminent interest rate cuts by the Federal Reserve. The price of gold jumped to $2,075.03 per ounce, getting close to the record high set in December 2023.
This rally was supported by expectations of Federal Reserve intervention to bolster the economy, evident in falling Treasury yields and marking gold’s most significant intraday increase since mid-January.
Bitcoin Leads Schiff’s Gold Optimism
Schiff’s optimistic perspective on gold is reinforced by his recent social media updates on platform X, where he emphasizes the unprecedentedly high value of the GLD ETF, even amidst nine consecutive weeks of capital outflows. This observation leads Schiff to propose a significant shift from what he terms as “dumb money” to “smart money,” indicating a transition in investor sentiment towards gold.
Additionally, Schiff points out the disparity between the robust fundamentals for gold and the weak sentiment towards gold mining stocks, exemplified by the world’s largest gold mining company, NEM, hitting a 5-year low amidst soaring gold prices. Schiff sees these trends as signs that gold is still valuable and has room to grow.
Contrary to the prevailing Bitcoin euphoria, Schiff has been outspoken in his skepticism, predicting an imminent crash for the cryptocurrency. While Bitcoin captures the spotlight, Schiff contends that gold’s resilience and intrinsic value are being overlooked by mainstream financial media outlets like CNBC.
As gold prices continue to climb and speculation regarding Federal Reserve policy intensifies, Schiff’s critique serves as a reminder of the enduring significance of traditional safe-haven assets like gold amidst the frenzy surrounding cryptocurrencies. Whether CNBC and other financial media will heed Schiff’s call to reevaluate coverage priorities remains to be seen.