Peter Schiff Warns Stocks Are In A 'Stealth Bear Market' As Gold Hits Record High: 'Don't Get Excited About Today's 300 Point Rise In The Dow Jones'

Prominent economist Peter Schiff has downplayed the significance of the Dow Jones Industrial Average’s recent surge, attributing it to a “stealth bear market” in gold.

What Happened: Schiff took to X, formerly Twitter, to express his skepticism about the Dow Jones’ 300-point rise on Friday.

Major indices Nasdaq, S&P 500, and Dow Jones surged on Friday amid hotter-than-expected labor market data.

However, Schiff underscored that despite its surge, Dow is actually in a "stealth bear market" when compared to gold. While the Dow Jones Industrial Average gained 0.8%, it was overshadowed by gold’s 1.7% jump.

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Schiff suggested that when measured in “real money,” the Dow lost close to 1%. He further noted that when priced in gold, the Dow is down approximately 10% so far in 2024.

"Don’t get excited about today’s 300-point rise in the #DowJones. The Dow is in a stealth bear market in gold. It’s a long way down!"

Schiff has also predicted a 35% upside for commodity prices, suggesting that a significant surge may be on the horizon.

Why It Matters: Schiff’s comments come at a time when gold is experiencing a significant surge.

On Friday, gold closed at an all-time high of over $2,300 per ounce. This was driven by high demand following a stronger-than-expected March jobs report. This surge in gold prices has been accompanied by a rally in mining stocks to an 11-month peak.

Earlier this week, Schiff had also suggested that Bitcoin (CRYPTO: BTC) holders should exchange their holdings for gold and silver. He has been a vocal critic of the cryptocurrency, consistently advocating for precious metals as a more reliable store of value.

Other experts have been bullish on gold, too. For instance, David Einhorn, the founder of Greenlight Capital, has been loading up on gold as a hedge against inflation.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo courtesy: Gage Skidmore on Flickr