An executive with investment agency Goehring & Rozencwajg expects gold to hit record highs this year. “I wouldn’t be surprised to see a price of $3,000 this year,” they said. “It’s time people wanted to be bullish on gold.”
Gold to Hit File Peaks This Year
Leigh Goehring, Managing Partner of Goehring & Rozencwajg, spoke to Kitco News last week about her views on gold. Goehring has over three decades of investment experience, specializing in natural resource investing. She co-directs the Goehring & Rozencwajg Resource Fund.
“Gold will hit all-time highs this year,” she began by noting the $2,050 metal peak in August 2020 and again in March last year. The news outlet was told by the executive:
We’ll break the all-time high… It’s a good time to be bullish about gold.
Goehring believes the Federal Reserve will not increase interest rates but may lower them. “Then we will have another big inflation problem… This is the decade of inflation,” she warned. Last week, the benchmark rate was raised by 25 basis points, adding to the 75 interest rate that are at the base level.
The investment manager believes that when investors realize inflation won’t drop to the Fed’s 2% goal, they will start to show interest in gold. “Right now, when inflation goes up, the Fed raises rates and people sell gold.” she described, adding:
I think that the psychology of inflation will change, and it will go up. Inflation won’t be a problem as inflation won’t increase rates or lag behind.
The fund manager compared the current situation to the 1970s. “After the Fed started aggressively raising rates starting in 1973, gold prices corrected themselves by 45%…When the Fed finally gave up a few years later, inflation year after year was still 5%,” she explained. Noting the market will soon understand this, the executive said that rate increases are ending, but inflation hasn’t stopped. “Going back to the 1970s, when people saw inflation was still a big problem. That was when the price of gold started to go crazy after bottoming out in late 1976.”
While admitting that she doesn’t know “how high gold can go”, Goehring opined:
I wouldn’t be surprised to see a value of $3,000 this year.
The spot gold price was $1,869 per ounce and gold futures were trading at $1,882 as of the writing. Goehring isn’t the only one who expects gold to hit record highs in this year’s market. Market strategist Gareth Soloway believes gold will outperform silver in 2023 and Rich Dad Poor Dad creator Robert Kiyosaki mentioned in January this year, gold could reach $3,800. Meanwhile, Harry Dent predicted that gold could drop to the $900-$1000 range in the next 18 months.
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