The new gold rush is here.
With central banks flooding the global economy with stimulus, there’s no doubt gold could hit $3,000, even $5,000 in the next 18 months. Plus, with new economic uncertainties with a “second wave” of the coronavirus, coupled with tensions with China, and even upcoming U.S. elections, gold prices will only accelerate higher.
“As economic output contracts sharply, fiscal outlays surge, and central bank balance sheets double, fiat currencies could come under pressure,” argue analysts at Bank of America.
“Investors will aim for gold.”
Goldman Sachs says we’ll see $2,000 an ounce in the next 12 months on low real interest rates and currency debasement concerns.
Elliott Management’s Paul Singer says gold is “one of the most undervalued” assets available and that its fair value is “multiples of its current price.”
Greenlight Capital’s David Einhorn says, “We believe the implied negative interest rates are bullish for gold and for unlevered real assets with pricing power.”
Some analysts are even calling for $5,000 gold.
Billionaire Thomas Kaplan recently said, “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.”
Some of the top ways that investors have been trading gold is by buying into:
SPDR Gold Shares (GLD)
SPDR Gold Shares offer investors an innovative, relatively cost efficient and secure way to access the gold market. SPDR Gold Shares are intended to offer investors a means of participating in the gold bullion market without the necessity of taking physical delivery of gold, and to buy and sell that interest through the trading of a security on a regulated stock exchange, as noted by SPDR Gold Shares’ site.
iShares Gold Trust (IAU)
The Fund seeks to reflect the price of gold owned by the trust less the trust’s expenses and liabilities. The Fund intends to constitute a simple and cost-effective means of making an investment similar to an investment in gold.