Investment Manager Predicts Gold Could Hit $3,000 This Year – Markets and Prices
Investment management and advisory firm Goehring & Rozencwajg expects gold to hit record highs this year. “I wouldn’t be surprised if I saw a prize of $3,000 this year,” said a company executive. “It’s about time people wanted to be bullish on gold.”
Gold is headed for “record highs” this year
Managing partner of investment firm Goehring & Rozencwajg, Leigh Goehring, shared his prospects for gold in an interview with Kitco News last week. Goehring has 32 years of investment experience and specializes in investments in natural resources. He is co-manager of the Goehring & Rozencwajg Resources Fund.
“Gold will hit record highs this year,” he began, noting that the metal peaked at $2,050 in August 2020 and again in March last year. The executive told the news outlet:
This year we will all-time high break through… It’s about time people want to be bullish on gold.
He believes the Federal Reserve will stop raising interest rates and may even start lowering them. “Then we get another big inflation problem… This is the decade of inflation‘ he warned. After a series of 75 basis point rate hikes, the Fed raised interest rates by 25 basis points last week.
Goehring expects investors to turn to gold once they realize that inflation will not fall to the Fed’s 2% target. “Right now, when inflation is rising, the Fed is raising rates and people are selling gold,” he described, adding:
I think the psychology will change such that inflation will rise, the Fed won’t hike rates or will lag behind, and inflation will become a real problem.
The Investment Manager compared the current situation to what happened in the 1970’s. “After the Fed began raising rates aggressively from 1973, gold corrected by 45%…When the Fed finally gave up a few years later, inflation was still 5% year-on-year,” he explained. Noting that the market will realize that the Fed’s rate hikes are ending and inflation isn’t over yet, the executive said, “Back in the 1970s, when people saw that inflation was still a big problem, that’s when the price of gold started to go crazy bottoming out in late 1976.”
Goehring admitted he didn’t know “how high gold can go,” but said:
I wouldn’t be surprised to see a $3,000 award this year.
Gold spot price at the time of writing is $1,869 an ounce with gold futures trading at $1,882. Goehring isn’t the only one expecting gold to hit record highs this year. Market strategist Gareth Soloway believes gold will be the best performer in 2023. Rich Dad Poor Dad author Robert Kiyosaki said in January that gold could hit $3,800 this year. Meanwhile, Harry Dent has predicted that gold could fall into the $900-$1,000 range over the next 18 months.
Do you think gold will hit $3,000 this year? Let us know in the comment section below.
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