Peter Schiff’s Observations
Renowned investor Peter Schiff recently drew attention to the monumental market capitalization surge of Nvidia Corporation NVDA. He juxtaposed this climb against the collective value of the top 85 publicly traded gold mining companies.
Ripple in the Market
What Happened: Schiff showcased Nvidia’s stock price soaring to an all-time high subsequent to an earnings report that surpassed expectations. This remarkable escalation furnished the company with a $277 billion boost in market cap. Schiff contrasted this one-day surge with the combined market capitalization of the largest 85 public gold mining enterprises, which amounts to just $260 billion.
Mixed Reactions and Responses
This commentary is noteworthy coming from Schiff, a notable proponent of gold, who has previously cast doubt on the investment rationale behind tech stocks and ridiculed Bitcoin BTC/USD and spot BTC ETFs.
His recent tweet sparked various reactions, including a response highlighting, “the market cap of [Bitcoin] at $1 trillion, with capital flowing from #gld #ETFs into #BTCETF‘s. Gold is dead.”
Significance
Why It Matters: Nvidia has now secured the position of the fourth-largest company by market cap, following Microsoft, Apple, and Saudi Aramco. Valued at $1.96 trillion, the $277 billion surge in market cap, as underscored by Schiff, is indeed substantial.
In contrast, the largest gold mining company, Newmont, holds a market cap of $35.60 billion. The second-largest, Barrick Gold, stands at $25.26 billion. Bitcoin’s market cap exceeds $1 trillion, with each coin priced above $51,000.
Perspective and Caution
Schiff has previously expressed skepticism about the rush of investors toward tech stocks, particularly those perpetuating losses. He advised investors to concentrate on dividend-paying and value stocks during market turbulence.
Recently, Schiff voiced concerns about a potential pump-and-dump scenario in the cryptocurrency market coinciding with a four-day conference initiating on Super Bowl Sunday. His tweet hinted at skepticism toward the recent excitement around newly listed Bitcoin ETFs, foreshadowing an impending “massacre,” even as Bitcoin crossed the psychologically crucial $50,000 threshold.
Market Reaction
Price Action: On Thursday, Nvidia shares surged 16.4% to $785.38 in the regular session and gained an additional 1.7% in after-hours trading, as per Benzinga Pro data.
Photo Courtesy: Wikimedia Commons
