Even the mainstream is getting bullish on gold.
Goldman Sachs now forecasts record gold prices within the next 12 months.
Goldman analysts say gold will likely reach $2,000 per ounce within the next year thanks to ultra-low interest rates and concerns over currency debasement.
The investment bank raised its 12-month forecast from $1,800 per ounce to $2,000 in a note released last Friday. It also upped its three-month view to $1,800 and its 6-month forecast to $1,900.
Goldman cited a number of factors including “continued debasement concerns” and a weaker dollar. It also expects a pickup in emerging market demand for gold as economies reopen. Analysts said this strength in “development market investment demand” should “persist even as economies recover, supported by fears of debasement and the higher level of economic uncertainty of the crisis.”
Goldman also raised its silver forecast from $15 per ounce to $22 per ounce.
If anything, Goldman is likely underestimating gold’s trajectory. Take the investment bank’s concern about low interest rates. In a press conference after the June FOMC meeting, Federal Reserve Chairman Jerome Powell said, “We’re not even thinking about thinking about raising rates.”
Peter said the Fed’s official statements and Powell’s comments after the meeting show him that what the Fed is doing now “really amounts to nothing but a monetary Hail Mary.”
The Fed is desperate. They know that everything is going to fall apart. So, they just got interest rates at zero and they don’t care what happens. It’s like they got their pedal to the metal, and they’re going full-speed ahead, and they just closed their eyes. They don’t even care what’s on the road because it doesn’t matter. Even if they go over a cliff and crash and burn, it doesn’t matter because they’re going to die anyway. I mean, that’s basically what they’re saying.”
This is certainly bullish for gold.
Source: SchiffGold
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