Investors may want to pivot back into gold.
After finding double bottom support at $1,677, analysts say gold could be move back above $2,000 this year. Analysts at Citi for example have a $2,500 price target, comparing its catalysts to that of gold’s rally between 1970 and 1980.
Trovio CEO Jon Deane says, “We’ll see a real big move in gold. Realistically, $2,200 is probable,” as quoted by Kitco. Plus, he says we’re on an economic cliff.
“We are already seeing inflation. If you look around the world, you see real estate prices, building supplies, and services skyrocket,” he said. “What we created since the early 1990s is an entire financial infrastructure that is relying on debt, and we have accelerated that dramatically in our response to managing the COVID-19 crisis. In that regard, we will continue to increase the money supply globally, and we will continue to have a quite aggressive fiscal policy. We are sitting on an economic cliff.”
Here are three ways to trade a potential gold rally.
SPDR Gold Trust (GLD)
SPDR Gold Shares — the largest physically backed gold exchange traded fund (ETF) in the world is well worth picking up After catching double bottom support, GLD now trades just under $172.
Kirkland Lake Gold Ltd. (KL)
Kirkland Lake Gold engages in the acquisition, exploration, development, and operation of gold properties. It owns and operates four underground gold mines, including the Macassa, Holt, and Taylor mines located in northeastern Ontario, Canada; and the Fosterville Mine located in Victoria, Australia, as well as three milling facilities in Canada and Australia.
Barrick Gold Corp. (GOLD)
Barrick Gold engages in the exploration, mine development, production, and sale of gold and copper properties. It has ownership interests in producing gold mines that are located in Argentina, Canada, Côte d’Ivoire, the Democratic Republic of Congo, Dominican Republic, Mali, Papua New Guinea, Tanzania, and the United States.