Shares of gold-mining companies that have lagged behind the broader market will rebound as equity investors gain confidence that the surging price of the metal doesn’t signal a bubble, according to Peter Schiff, the chief executive officer of Euro Pacific Capital Inc.
The share performance “shows a high degree of skepticism among investors” on gold prices, Schiff said today at the Inside Commodities conference in New York. “That’s the antithesis of a bubble. When investors figure out what’s going on, they’ll be buying up gold shares.”
Demand for gold has been fueled by individuals and central banks that want an alternative to currencies devalued by expansions in money supplies, Schiff said.