(Kitco Mon. April 13th, 2020) – Gold prices have pushed to nearly an eight-year high, and this is only the start as investors should keep an eye on the precious metal’s long-term outlook, according to one gold fund executive.
In a telephone interview with Kitco News on Monday, Peter Grosskopf, chief executive officer at Sprott Inc., said that the gold market’s future looks bright as the global economy deals with unprecedented stimulus during a time of unprecedented uncertainty.
“Investors should continue to consider gold as a unit of currency or a purchasing power that can maintain its value against other assets,” he said.
Grosskopf’s comments come as gold prices have soared well above its previous long-term resistance levels at $1,700 an ounce. June gold futures last traded at $1,764.10 an ounce, up 0.64% on the day.
“Gold has been acting very well in the last month. All the technicals show that its uptrend will be maintained in the short, medium and long term,” he said. “We would expect to see prices over $2,000 by sometime early next year. That is not a surprise, fundamentally either, in the current environment.”
Some markets analysts see limited scope for gold in the near-term as the COVID-19 pandemic pushes the global economy into a recession, raising deflationary fears. However, Grosskopf said that investors should look past any short-term weakness in gold.
He added that there is scope for gold to do well in both an inflationary and deflationary environment.
“If you get deflation and you get a real crash in the financial system, want to be holding some gold,” he said. “And if you see through it and you get the recovery, you will now have an extra $6 or $7 trillion floating around financial markets. That is when you really want to hold some gold in case of inflation so I don’t think as a gold bull, you need to discern right now between the two scenarios.”
We at 401 Gold Consultants LLC have to agree with this bullish gold outlook and have responded with major gold purchases made weeks ago before this recent gold rally took place. Call, text or e-mail 401 G.C. to get started, we can help you decide what gold is best for you!
Posted by :
Jack Dempsey, President
401 Gold Consultants LLC
jdemp2003@gmail.com