Frank Holmes, CEO of U.S. Global Investors, told investors watching CNBC on Monday, August 10, the most popular financial TV network, “It’s quite easy to see gold going to $4,000.”
He pointed to the trillions of dollars in stimulus packages passed by Congress during the coronavirus pandemic. He added that the other G-20 finance ministers and central banks are “working together like a cartel and they’re all printing trillions of dollars” and “at zero interest rates, gold becomes a very, very attractive asset class.”
Holmes has long maintained that “negative real interest rates” (no real income after inflation) are the key indicator fueling gold’s rise, so a looser monetary policy generally means investors are more likely to seek out gold as savings. In this scenario, the “opportunity cost” of holding gold disappears for investors. Last week, the U.S. 10-year bond reached a record low yield of 0.5%, as close to zero as it is likely to get.
The Adens Declare ‘Gold is the Best Investment in the World Today’
In their popular financial July 17, 2020 newsletter, Pamela and Mary Anne Aden declared gold as “the best investment in the world today” and told their readers “we want you on board the gold train as it pulls out of the station.” The Adens outlined some of the reasons why: “Gold is, and always has been, the world’s safe haven. That is, during times of uncertainty, insecurity, economic or political upset, war, devaluations and more, gold has always come out as #1. And this track record goes back more than 5,000 years… Throughout history, gold has always maintained its purchasing power, and again, no other investment comes close…. Plus, gold is durable and it’s beautiful, which has also made it superior to other mediums of exchange.” They then go back through history, from the Egyptian pharaohs, who were buried with their gold, through the Roman empire, to the Spanish conquistadors, to the 1849 Gold Rush, the Vietnam boat people; to the present, when we’ve seen gold beat every other investment since 1970, since 2000, and this year, too.
The Adens also say new money printing will begin fueling inflation, pushing the dollar lower, and pushing gold higher, reaching new record highs:
“Once gold hits new record highs, sky’s the limit. As we’ve pointed out before, if this bull market unfolds like the previous ones did, the gold price could ultimately soar to the $7,500 to $25,000 level. We know that sounds crazy, but it’s happened before, and it could happen again. That’s even more so the case considering we’re in uncharted waters and these are unprecedented times. But regardless of where gold ends up, the point is, gold is the very best investment in today’s environment. It’s poised to outperform stocks and bonds, and it’s where you want to be. It’s not too late. We believe the big exciting up moves lie ahead.”
Goldman Sachs Raises its 12-Month Forecast to $2,300 Gold and $30 Silver
Goldman Sachs recently upgraded its 12-month forecast for gold by 15%, from $2,000 to $2,300, and it pushed its silver forecast up 36%, from an already-outdated $22 to $30 per ounce.
“Combined with a record level of debt accumulation by the U.S. government, real concerns around the longevity of the U.S. dollar as a reserve currency have started to emerge,” Goldman analysts said. “If central banks can just digitally create money out of thin air, then it could easily undermine the fiat money system, potentially devaluing currencies or worse. Gold would look very attractive in that scenario.”
Precious Metals Storage Options
Danielle Braff of The New York Times wrote an article in July 2020 about gold storage, a subject that has interested me for a long time. She interviewed a lot of interested parties, with some fascinating facts, but I’m afraid there was information presented in the article that I disagree with. She quoted several operators of private bullion vaults, who had a vested interest in recommending against the use of bank safety deposit vaults.
They also noted that some buyers are choosing to go the old-fashioned route and are storing their gold at home. Numerous YouTube videos and bloggers explain how to bury gold bars in everything from mincemeat to the backyard. But it’s wise to consider your options before simply stuffing your gold in a burial tube under a tree. They often leak. I strongly advise against burying gold in your mincemeat, in your backyard, or under a tree. People sometimes die or forget where they buried their gold. Even a home safe is subject to a criminal holding you at gunpoint or knife point and demanding your access code. My 40 years of experience has shown that a bank or reputable security center safety deposit box is your best option.
Mike Fuljenz is a member of the Newsmax Finance Brain Trust. He is also the editor of the NLG award winning Michael Fuljenz Metals Market Weekly Report. Discover more by Clicking Here Now.
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