As the price of gold continues to soar, prominent economists Mohamed A. El-Erian and Peter Schiff are emphasizing the ongoing strength of the gold market. El-Erian highlights the significant expansion of the commodity rally, while Schiff underscores the importance of holding onto gold and silver assets amid a promising market outlook.
What Happened: El-Erian, the chief economic advisor at Allianz, took to X to share his thoughts on the recent surge in gold prices. He pointed out that the price of gold has hit over 20 new highs this year, with the latest highs being accompanied by a significant expansion of the commodity rally. El-Erian also noted that the drivers behind these highs now include a wider range of demand and supply factors.
“This month's new highs in the price of #gold is not unusual,” El-Erian wrote.
Meanwhile, Schiff, a well-known gold advocate and Bitcoin BTC/USD critic, also took to X to advise investors to hold on to their gold and silver assets. He warned that selling during a bull market is easy, but buying back in is the hard part. Schiff believes that the current gold rally is just getting started and that good things come to those who wait.
“Don’t sell any of your #gold or #silver. It’s easy to sell out of a bull market. The hard part is buying back in. Just sit tight and enjoy the ride. It’s likely just getting started. Good things come to those who wait. We’ve waited a long time, so what’s coming should be great,” Schiff wrote.
Investors interested in gold ETFs might check SPDR Gold Trust GLD, iShares Gold Trust IAU, Abrdn Physical Gold Shares ETF SGOL, VanEck Gold Miners ETF GDX, which invests in global gold miner equities.
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Why It Matters: The price of gold has been on a steady rise, recently hitting a new record high of $2,450 per ounce. This surge is attributed to the expectation that the U.S. Federal Reserve might lower interest rates by September, making gold a more attractive investment option.
This trend has also been reflected in the actions of prominent investors. For instance, Michael Burry, the legendary investor who predicted the 2008 financial crisis, recently made significant bets on gold and renewable energy stocks, indicating a shift in investment strategies towards physical commodities and renewable energy.
However, not everyone is optimistic about the economic situation. Schiff, who is also the CEO of Euro Pacific Capital, recently criticized President Joe Biden‘s new tariffs, labeling them as taxes that will only add to the economic misery.
Price Action: On Tuesday, Gold spot prices closed at $2,422 per ounce, up 0.07%, according to the data from Benzinga Pro.
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This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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