Gold may be one of the safest bets at the moment.
With a resurgence of COVID-19 cases and no vaccine to speak of, coupled with tensions with China, investors are piling back into the safe havens of gold. In fact, gold last traded at $1,724 and could easily explode to $2,000, near-term.
Elliott Management’s Paul Singer says gold is “one of the most undervalued” assets available and that its fair value is “multiples of its current price.”
Greenlight Capital’s David Einhorn says, “We believe the implied negative interest rates are bullish for gold and for unlevered real assets with pricing power.” Even Bank of America raised its 18-month price target on gold to $3,000.
The other catalyst for higher gold is the central banks, which have flooded the global economy with liquidity to keep it afloat. Plus, the U.S. Federal Reserve isn’t likely to tap the breaks on recent stimulus and quantitative easing any time soon either.
“The global economic recovery will still require further aid and gold prices should still be supported over the medium-term,” wrote Edward Moya, senior market analyst at brokerage Oanda, as quoted by MarketWatch.
Until there’s greater certainty in the markets, here are some of the top gold stocks to watch:
- Barrick Gold (GOLD)
- Gold Fields (GFI)
- B2Gold (BTG)
- Kirkland Lake Gold (KL)
- VanEck Vectors Gold Miners ETF (GDX)