Peter Schiff Says Gold Stocks Show 'Extreme Bearishness' Despite Yellow Metal's Record Run: Can These Stocks Climb A 'Wall Of Worry?'
Portfolio Pulse from Shanthi Rexaline
Peter Schiff, a well-known gold bull, commented on the recent performance of gold and gold stocks, highlighting that despite gold's record close, gold mining stocks rose by a lower percentage, indicating 'extreme bearishness'. Gold has rallied about 13.5% this year, driven by expectations of Federal Reserve rate cuts. The VanEck Gold Miners ETF (GDX) and several gold mining stocks such as AEM, BTG, FNV, NEM, and NG have underperformed compared to spot gold and gold futures, but could catch up as higher gold prices boost their revenues. Benzinga screened gold stocks based on market cap, trading volume, analyst recommendations, and price targets.
December 02, 2023 | 7:10 pm
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POSITIVE IMPACT
Agnico Eagle Mines Limited (AEM) is one of the gold stocks that could benefit from the rising gold prices and the expected reversal of rate hikes by the Federal Reserve.
AEM, being a gold mining company, stands to gain from the current bullish trend in gold prices. Schiff's analysis suggests a potential upside for gold stocks, which includes AEM.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
B2Gold Corp. (BTG) is another gold mining stock that may see increased investor interest as gold prices continue their upward trajectory.
BTG's performance is closely linked to gold prices, and the current market conditions, as highlighted by Schiff, could lead to a positive short-term impact on the stock.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Franco-Nevada Corporation (FNV) may experience a rise in its stock price as the gold market continues to perform well, with Schiff's comments underscoring the potential for gold stocks.
FNV, as part of the gold mining sector, is likely to be positively affected by the increase in gold prices and the market's anticipation of Fed rate cuts.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The VanEck Gold Miners ETF (GDX) has underperformed spot gold and gold futures, rising only about 11% for the year. However, it may see a catch-up rally if gold prices continue to rise, potentially increasing the top-line for gold mining companies.
GDX is directly tied to the performance of gold mining stocks, which are expected to benefit from higher gold prices. Schiff's comments suggest a potential for a catch-up rally, which could positively impact GDX in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Newmont Corporation (NEM) could see its stock price benefit from the bullish sentiment in the gold market, as suggested by Schiff's observations.
NEM's stock price is expected to react positively to the ongoing rally in gold prices, especially if the Fed begins to cut rates, as anticipated by the market.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
NovaGold Resources Inc. (NG) is positioned to potentially benefit from the current positive trend in gold prices, aligning with Schiff's commentary on the sector.
NG, being in the gold mining industry, may see a positive short-term impact on its stock price due to the bullish sentiment in the gold market and the expected monetary policy changes.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80