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Gold Price Forecast 2020: The Shift Towards Precious Metals Has Begun The paradigm shift I spoke about last year is unfolding before our eyes. Precious metals are likely to emerge from the global COVID-19 crisis as the premier asset for investors. Investment Themes Every decade has a distinct investment theme. One asset class rises to the top and outperforms everything else. Below are some examples.
After an 11-year bull market in stocks, the next asset shift has likely begun. Loose monetary policy and negative bound interest rates suggest 2020 - 2030 will be a decade that heavily favors tangible, hard assets like gold and precious metals. Precious Metals Demand Shock The crashing stock market and global pandemic triggered sudden and likely irreversible demand for precious metals. Last year I mentioned how record low gold eagle coin production probably signaled a turning point in demand. That appears accurate as bullion products fly off the shelves. In the US, the primary coin dealers sold out of American Eagle coins (gold, silver, platinum) last week. Premiums have skyrocketed. There’s no putting the genie back in the bottle - an unprecedented shift to precious metals has started, led by the frustrated and terrified public. Note: Demand for silver and platinum is spiking as prices reach fresh lows. The current deflationary forces could keep costs suppressed temporarily, but their trends should turn higher and follow gold as investor demand grows. Long-Term Gold Target If gold comes back to test the $1350 - $1400 breakout area, that could be the last great buying opportunity of this decade. By the end of this decade, we expect gold to reach $7,500 - $10,000. A $7,500 - $10,000 price target for gold sounds absurd, I know. Before you dismiss it, let’s think about the potential triggers that could yield such lofty prices.
Currently, our Gold Cycle Indicator is at 46 and entered maximum bottoming - suggesting gold may be approaching a bottom. I think it could drop further and perhaps reach a score of zero in April or May. AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. AG Thorson, CMT
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