Negosentro.com | Why Gold Will Hit Record Highs Before 2020 Ends | The end of the year is approaching fast. And with that, gold is expected to reach the next leg of its rally.
In Citigroup’s latest quarterly-commodities outlook report, the investment bank predicted gold prices could reach a record $2,200 per ounce within the next 3 months.
And within the next 12 months, an estimated $2,400 per ounce.
Why the spike? Well, 2020 has been quite a year.
The chaos of the U.S election. The nosedive of global bond yields. Not to forget, the COVID-19 pandemic rages on.
And as the country undergoes a second wave of lockdowns—this spike in gold prices is only projected to continue.
What Influences the Prices of Gold
The act of investing in gold can be traced back as early as 550BC. However, it was not until the late 1800s that gold earned its value in modern finance.
So, what influences the price of gold?
Typically, it boils down to a combination of things: the demand for gold, the value of the U.S dollar, and the amount of gold accruing in the central bank reserves.
Currently, however, we are witnessing an economic trend that aligns with the rising price of gold.
Economic booms, geopolitical turmoil, and wartimes have massive impacts on the trajectory of gold prices. Usually, during an economic crisis, investors turn to gold for protection and safe haven.
In other words, if the economy is doing poorly, people purchase more gold.
An example: the Great Depression.
In 1929, the prices of gold increased from $20.67 an ounce to $35 in 1934.
Foreseeing the economic downturn, the Federal Reserve attempted to maintain the gold standard. This further fueled the Great Depression, triggering the stock market crash of 1929. As a response, people began to hoard gold for security.
Another major gold spike occurred in June 2016. Within just six hours, on June 2, 2016, gold prices skyrocketed to $100.
This happened in response to Great Britain’s vote to leave the European Union.
Again on June 23rd of that same year, gold prices rose from $1,254.96 at 4 p.m. on the evening of the Brexit vote. This price increased to $1,347.12 at midnight. Investors purchased gold as a hedge against a declining euro and British pound.
Those are just a couple of trends to note.
Why 2020 Is Different for Gold
So when looking at 2020, there’s really no surprise.
Many events that have happened this year have rocked the U.S to its core, triggering record high gold prices.
2020 has been a year of low interest rates and financial uncertainty.
This comes as a result of the global pandemic that triggered the market crash, and in turn, prompted gold to enter a bull market.
In May 2020, gold increased from $47.99 to $59.86.
And as the pandemic continued, the price of gold has only further heightened its utility as a hedge to the S&P 500.
With the weakening in economic growth, investors everywhere are looking to gold for refuge, or a “safe-haven” rather, reallocating their wealth into gold.
What Experts Are Saying
Ultimately, the impact of the pandemic is significant.
Mounting fears over the future of the economy in the aftermath of COVID-19 has triggered investors to flock to gold in search of safe haven.
And in response, gold stocks have taken off.
Newmont Corporation and Barrick, shares of the two largest gold miners in the world, have respectively rallied 45% and 53%.
Even lesser-known mining companies, such as Josemaria Resources, are becoming leaders in gold – the company, which is a junior, boasts a reserve profile of 7 million ounces of gold.
Newmont’s CEO Tom Palmer said in a recent interview with Bloomberg, he believes that gold prices will remain high for some time to come, reinforcing Citigroup’s outlook.
Where to Invest in Gold Right Now
As you start to consider where to invest in gold, you may want to look at this junior mining stock with big reserves.
Backed by the Lundin family, which has been making fortunes for investors for more than 30 years, Josemaria Resources (TSX-V:JOSE / OTCQB:JOSMF) is a copper-gold deposit located in San Juan Province, Argentina. The Company is committed to advancing the development of the project after disclosing its proven probable reserves of 6.7 billion lbs of copper, 7 million ounces of gold, and 30.7 million ounces of silver.
Many notable names are associated with Josemaria Resources (TSX-V:JOSE / OTCQB:JOSMF). The Lundin Family has been the driving force behind some of the top-performing mining development companies in Argentina, and the world, for decades, including the Argentina-based Bajo de la Alumbrera copper-gold deposit, and the Veladero gold deposit, which were both later acquired, giving shareholders huge returns of 1757% and 1091%, respectively.
Now’s the opportunity to make an investment worthwhile.
For Retail Investors, By Retail Investors.
Dear Retail recognizes the market is not set up for the little guys: big corporations will constantly swoop in and nab opportunities small-cap investors painstakingly researched for months. That’s why Dear Retail helps level the playing field by serving their community with small-cap market skills, knowledge, and transparent, exclusive investment opportunities. Dear Retail helps those with an unquenchable thirst for finance knowledge find their edge and make their hard work finally pay off—in a big way.
**IMPORTANT! BY READING THE CONTENT IN THIS PUBLICATION YOU EXPLICITLY AGREE TO THE FOLLOWING. PLEASE READ CAREFULLY**
PAID ADVERTISEMENT: Dear Retail Corp., and its owners, directors, officers, employees, consultants, agents, affiliates and assigns (collectively, “Dear Retail”) have been compensated to conduct an awareness advertising and marketing campaign of the profiled company. Therefore, this communication should be viewed as a commercial advertisement only. This communication is not a recommendation to buy or sell any securities or make any investment in the profile company. Dear Retail has been paid $200,000 on behalf of the profiled company to disseminate this publication, other publications and newsletters and certain banner ads for a period of 60 days. This compensation is a major conflict with Dear Retail’s ability to be unbiased.
Dear Retail may hold, as well as purchase and sell, the securities of this profiled company before, during and after the time that Dear Retail publishes favorable information about the profiled company. The purchase and sale by Dear Retail of securities of this profiled company may cause: (a) a decline in the price of the profiled company’s stock due to such selling activities, (b) increased volatility due to such buying and selling of the profiled company’s stock and (c) permit Dear Retail to make substantial profits while it is profiling this company, yet may result in a diminished value or loss for readers of this publication who invest in the profiled company.
The content in this publication is a snapshot that provides only positive information on the profiled company. Dear Retail does not and will not publish negative information about the profiled company. Accordingly, readers should consider the information to be one-sided and not balanced, complete, accurate, truthful or reliable.
Frequently companies profiled in Dear Retail’s publications experience a large increase in volume and share price during the course of the awareness advertising and marketing campaign, which increase in volume and share price often ends as soon as the awareness advertising and marketing campaign ceases.
NOT AN INVESTMENT ADVISOR AND NOT INVESTMENT ADVICE. Neither Dear Retail nor anyone involved in this publication is a registered investment advisor, broker-dealer or securities professional or associated with a registered investment advisor or broker-dealer. You understand that the information presented in this publication is provided for informative purposes only and that no content constitutes or should be treated as a recommendation to make any specific investment or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.
RISK OF INVESTING. Investing is inherently risky. Readers must consult with their own investment advisor before making any investment decisions and should understand the risks associated with an investment in the profiled company’s securities, including, but not limited to, the complete loss of your investment. You must be aware of the risks and be willing to accept them in order to invest in any type of security. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to buy/sell securities. No representation is being made that any reader will or is likely to achieve profits similar to those discussed in the publication. The past performance of any security is not necessarily indicative of future results. Dear Retail does not guarantee that any of the profiled companies mentioned in this publication will perform as it expects, and any comparisons that have been made to other companies may not be valid or come into effect.
ALWAYS DO YOUR OWN RESEARCH TO CONFIRM THE ACCURACY OF ANY INFORMATION in this publication and consult with a licensed investment professional before making anY investment. This publication should not be used or relied upon as a basis for making any investment and never invest purely based on Dear Retail’s publications, newsletters or website. You must obtain more specific or professional advice before taking, or refraining from, any action or inaction on the basis of the content on this publication.
INFORMATION PRESENTED: THERE CAN BE NO ASSURANCE THAT CONTENT IN THIS PUBLICATION IS ACCURATE OR WITHOUT ERROR. ANY PERSON WHO MAKES USE OF SUCH CONTENT AFFIRMATIVELY ASSUMES ALL RISKS FROM USING THE CONTENT. Dear Retail has not thoroughly investigated the background of the profiled company. Dear Retail does not guarantee the timeliness, accuracy, or completeness of the information on Dear Retail’s website, in its newsletters or in this publication. Such information is collected from public filings (including without limitation, www.sedar.com and www.sec.gov) and other sources deemed to be reliable, such as the profiled company’s website and press releases, and is provided “as is” in good faith, but has not been independently researched or verified and is not guaranteed to be correct.
Disclaimer for Forward-Looking Information: In addition to historical information, this publication contains forward-looking statements, which are forward-looking and prospective in nature. The words “will,” “expects,” “could,” “would,” “may,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “targets,” “estimates,” “looks for,” “looks to,” “continues” and similar expressions, as well as statements regarding a third party’s focus for the future, are generally intended to identify forward-looking statements. Each of the forward-looking statements made in this publication are based on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Although Dear Retail believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Forward-looking statements in this article include statements regarding the future business plans of the profiled company and include the following statements: τ[insert forward looking statements]. In addition, factors that might cause or contribute to such differences include, but are not limited to, those disclosed by the profiled company in their public securities filings found on www.sedar.com. You should carefully review the risks described therein. You should not place undue reliance on these forward looking statements, which speak only as of the date such statement was published. Dear Retail undertakes no obligation to publicly release any updates or revisions to the forward-looking statements or reflect events or circumstances after the date of their publication, except as required by law.
INDEMNIFICATION/RELEASE OF LIABILITY. By reading this publication, you agree to the terms of this disclaimer and the terms and conditions set out in Dear Retail’s Website Agreement – Terms and Conditions of Use which can be found at www.dearretailinvestors.com. You agree to release and hold harmless Dear Retail from any and all liability, damages, and injury that may be caused from the information contained in this publication. You further warrant that you are solely responsible for any financial outcome that may come from any investment decisions that you make.