Gold just crossed $2,000.
In fact, it’s now up to $2,010.27, and could be headed to $2,500, near-term.
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.”
Helping, Warren Buffett’s Berkshire Hathaway is bullish on gold, having just bought shares of miner, Barrick Gold (GOLD). “The 31% surge in gold prices this year has strengthened the foundation of Barrick’s business while reducing operating risk, increasing cash flow and bolstering its balance sheet. That has enabled [CEO Mark] Bristow to “fast track” his revised dividend policy, which will now be based on “some sort of ratio” whether it be net income or cash flow,” as quoted by Fox Business.
The last time we spoke about gold, we highlighted three opportunities.
Those included the SPDR Gold Trust (GLD), which has now run from $187.24 to $188.64, and could potentially test $200. We also highlighted the Global X Gold Explorers ETF (GOEX) at $38.55. It’s now up to $38.60 and could run to $45, near-term. We also highlighted the VanEck Vectors Gold Miners ETF (GDX) at $43.36. It’s now up to $43.92.
All are still solid opportunities as the new Gold Rush begins.
Going forward, gold could still run to $3,000, according to Bank of America. We may even see $5,000., 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.
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