“From my point of view, this bull market is just getting going,” said Ronald-Peter Stoeferle of Incrementum.
With global markets in turmoil, gold has been on a tear this year, leaving many investors wondering what the future for the yellow metal could be.
For Ronald-Peter Stoeferle, managing partner at Incrementum, there’s still a long, bright path ahead. Speaking to the Investing News Network, he explained that the party is far from over for gold.
“From my point of view, this bull market is just getting going. It’s very healthy, and therefore I think that every dip should be bought,” said Stoeferle, who is also the author of the “In Gold We Trust” report.
The report, which is released annually, projects that gold will reach a price of US$8,900 per ounce by 2030 — a far cry from the current price of about US$1,770, and well beyond the metal’s all-time high.
“I think that we should be … adding positions, we should buy into the weakness. And I think this bull market will probably last much longer than many people expect,” said Stoeferle.
“From my point of view, gold is basically just a hedge against monetary inflation, and I think given the macro picture that we’re seeing at the moment, we should expect very, very aggressive fiscal and monetary policy in the next couple of years, and gold will probably be one of the most reliable hedges against those measures,” he continued.
Speaking more about fiscal and monetary stimulus, he said that unlike during the 2008/2009 financial crisis, right now fiscal and monetary stimulus are being implemented at the same time.
“It is not only monetary stimulus like in 2008/2009, it’s also dramatic fiscal stimulus,” Stoeferle explained. “So the reactions on financial markets were basically much much faster than in 2008/2009 — and this also adds to the case for gold from my point of view.”
Watch the interview above for more from Stoeferle on gold, including the metal’s role during times of inflation, what the impact of the US election could be and how gold stocks are doing.
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Securities Disclosure: I, Charlotte McLeod, 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.