These predictions may have sounded wildly bullish when they were first made, but that’s changing with gold holding above US$2,000.
Rising close to US$2,070 per ounce, gold has surged after passing its previous all-time high.
Now firmly holding above US$2,000, the yellow metal has added more than US$500, or 32 percent, to its value so far in 2020 and is primed to move higher.
There is little doubt that its rapid growth is partially the result of economic uncertainty caused by the COVID-19 pandemic; however, many analysts have long projected a rocketing price trajectory for gold.
The precious metal‘s record-setting ascent has been years in the making, and experts the Investing News Network (INN) has spoken to over the years have forecast this historic threshold and more. Read on to learn about a few of the biggest gold price calls INN has heard over the last five years or so — while they may have sounded wild at first, they’re now sounding much more attainable.
1. EB Tucker — “(Gold) can run into the US$2,000s”
EB Tucker, director at Metalla Royalty & Streaming (TSXV:MTA,NYSEAMERICAN:MTA), is gaining a reputation for his recent spot-on predictions for gold. In March 2019, Tucker explained why he thought gold would hit US$1,500 by the end of that year.
March 2019 — Tucker predicts US$1,500 gold.
“Gold’s up significantly since the summer … This is a big move when the stock market’s had a tough time,” he said. “I think that’s very telling. So I’m very positive on physical gold.”
When the interview took place, the metal was at about US$1,300; gold hit US$1,500 in August 2019.
Following up with a new forecast in September 2019, Tucker said he thought that in 2020 gold would take out its old high of around US$1,920. The metal was not far above US$1,500 when he said that.
September 2019 — Tucker predicts a new all-time high for gold.
That call ultimately came through last month. Taking a more modest stance the day of that milestone, Tucker commented, “We think that (gold) can run into the US$2,000s, and we’ll wait to see when it runs into trouble. We’re long and we’re watching.”
July 2020 — Tucker is watching for gold to run into the US$2,000s.
2. Rob McEwen — “I’ve always had a US$5,000 number”
All the way back in the summer of 2016, Rob McEwen, chairman and chief owner of McEwen Mining (TSX:MUX,NYSE:MUX), predicted that gold would reach a new high in the very near term.
At the time, gold was priced at around US$1,320, and the head of McEwen Mining thought it would hit US$2,000 by the end of the year.
August 2016 — McEwen explains why US$5,000 gold is possible.
While McEwen’s US$2,000 call didn’t materialize by the end of 2016, there is still potential for the price to hit his longer-term projection of US$5,000.
September 2019 — McEwen calls for US$5,000 gold, but gives no timeline.
Telling investors they should make sure they have exposure to gold, McEwen declined to offer a date for gold’s rise above US$5,000. “But in terms of a timeline, the ultimate height — that’s a good question. It’ll be a couple of years out from here,” he said.
3. John Kaiser — Gold will reprice to US$2,000 to US$3,000
In June 2017, John Kaiser of Kaiser Research sat down with INN to discuss gold trends. The yellow metal was below the US$1,300 level when he was speaking.
Kaiser cited the 2016 election and mounting geopolitical uncertainty as factors that could move gold to US$2,000 over three years.
“The fear trade or geopolitical instability — that desire to move capital out of US dollars into gold to ride out this chaos — that could give us the move to US$1,500 to US$2,000 over the next three years, which is not huge,” he said.
June 2017 — Kaiser predicts US$2,000 gold in the next three years.
INN caught up with Kaiser a year later, when gold was on the cusp of US$1,500. His previous geopolitcal concerns had come to fruition in the form of US/China tensions, which supported gold’s move higher.
“I think we are in the early stages of seeing a massive repricing of gold into the US$2,000 to US$3,000 range,” he noted. “The public won’t come in until they see gold really challenge the US$2,000 mark.”
August 2019 — Kaiser discuss gold repricing to US$2,000 to US$3,000.
Speaking to INN after gold surpassed US$1,900, Kaiser reaffirmed his stance that US$2,000 to US$3,000 gold is in sight in the relatively near future.
July 2020 — Kaiser offers his views on gold’s move to US$2,000 and beyond
“The COVID-19 pandemic has created enormous global stresses which are accelerating the need for gold to go into the US$2,000, US$3,000 range. I wasn’t really expecting it to break through until 2021, but I think we’re on the threshold. It seems to be paused right now, sort of waiting … but I think once it does (break through) then it’ll move around back and forth between US$2,000, US$3,000,” said Kaiser.
4. Frank Holmes — Making the case for US$8,000 gold
For Frank Holmes, CEO and chief investment officer at US Global Investors (NASDAQ:GROW), gold’s ascent has been no surprise due to the large amount of money printing present around the world.
In September 2019, gold was valued at close to US$1,500, and Holmes offered a couple scenarios for the safe haven metal.
“If gold was US$250 in 2001 and gold ran to US$1,900 — well, you’ve got an eight times increase. Gold then fell to US$1,000 and laid there for over five years,” he said. “So if it went up another eight times that’s US$8,000. Well, that doesn’t mean the world’s coming to an end.”
September 2019 — Holmes explains why US$8,000 gold is possible.
He continued, “We’re far from US$1,900. And what happens when the 30 year US government bond goes to negative rates? Do you know what’s going to happen? Gold’s (going) to US$3,000, US$4,000.”
Following months of market volatility and swelling investor interest in safe haven assets, Holmes told INN in July 2020 that “there is high probability” gold will reach US$4,000.
July 2020 — Holmes talks about stimulus efforts and rising precious metals prices.
“If we take a look at the last money printing, we’re going to go from US$1,500 to US$4,000. I think over the next three years there’s a high probability of gold going to US$4,000,” he explained.
5. David Smith — I believe US$10,000 gold can happen
The Morgan Report’s David Smith has one of the latest and highest gold price projections on this list.
During a MoneyShow presentation in June, the senior analyst at the Morgan Report forecasted US$10,000 gold while speaking about silver.
Using the gold/silver ratio as a reference, Smith explained that if the ratio hits 60:1 at US$10,000 gold, silver would see triple-digit prices.
“(With) US$10,000 gold you could see US$166 (per ounce) silver, and if it drops down to 40:1, which is not out of the question, US$250 silver,” he said. “Let’s say that you think US$10,000 is unrealizable — I happen to believe that it can happen and probably will.”
January 2020 — Smith makes the case for US$50 silver.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.