2020 Gold Rush: How to Trade $2,000 Gold

Gold is about to cross $2,000.

At the moment, it’s up to $1,991.47 – and could cross it as early as today.

All thanks to further fallout from the coronavirus, economic fears, tensions with China, central banks pumping liquidity into markets, and fear ahead of U.S. elections.  Worse, the International Monetary Fund estimates the global economy could shrink by up to 5% this year, prompting central banks to pump billions into the financial markets.

“It’s all monetary policy,” Mathieu Savary, a macroeconomic strategist with BCA Research says, as quoted by The New York Times. “It’s very, very easy monetary policy as far as the eye can see and gold loves it.”

From here, we could see $3,000 gold, as predicted by Bank of America.

We could even see $5,000 gold, as estimated by billionaire Thomas Caplan.  

“I do believe gold embarks on the next leg of its bull market and goes past $1,900 and ultimately $3,000 to $5,000, if not a lot higher, depending on macro circumstances that today seem dim but I can’t really quantify,” he says.

As we noted on July 21, 2020, some of the top ways to trade higher gold is with ETFs.

SPDR Gold Trust (GLD)

Even after running from a March low of $140 to $187.24, there may be much further upside for the GLD ETF, which invests directly in physical gold.  GLD could easily run to new record highs on global uncertainty, global stimulus packages, and economic fear.

Global X Gold Explorers ETF (GOEX)

Since bottoming out at $12.54 in March, the GOEX ETF has exploded to nearly $38.55, and could also see further upside.  Some of its top holdings include Hecla Mining, B2Gold Corporation, Kirkland Lake Gold, and SSR Mining Inc. 

VanEck Vectors Gold Miners ETF (GDX)

The GDX ETF popped from a low of $16.18 to $43.36 in recent months, and could also run higher.  This one seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the NYSE Arca Gold Miners Index (GDMNTR), as noted by VanEck.  Some of its top holdings include Newmont Corp., Barrick Gold Corp., Franco-Nevada Corp., and Kirkland Lake Gold.