Although the price of gold dipped this week, some of Wall Street’s savviest experts and analysts believe this is only the beginning of a new bull market in precious metals—gold, platinum and silver products included.
One such proponent of gold and silver goods is Peter Boockvar, Chief Market Analyst at The Lindsey Group, a Washington D.C.-based economic advisory firm. Earlier this week, he told CNBC’s Futures Now that, “This is just the beginning of a new bull market in the metals.”
For many investors, billionaires included, this week’s lower price, offers an excellent opportunity to buy. Boockvar also told CNBC that he believes that prices will surpass the 2011 highs of $1,900 per ounce of gold sometime in the future, based on the fact that throughout history, bull markets tend to exceed previous highs.
While some bears are focused on the potential hikes implied by the Fed minutes recently released, history shows otherwise. For example, the Feds raised the Federal funds rate from 1 percent to 5 percent in the mid-2000s—the prices of gold per ounce went up more than $300 during that time period.
As investors such as George Soros and Stanley Druckenmiller are betting against U.S. equities and hedging their portfolios with gold products, other smart money investors are following suit. Legendary investor business magnate and corporate raider Carl Icahn is another—in the first quarter of 2016, he increased his short positions—to the point where they are worth 1.5 times the amount of his long positions. It’s fairly obvious he is betting against equities in the current volatile marketplace. Worth $17 billion, Icahn is the founder and majority shareholder of New York City-based Icahn Enterprises.
If you’re feeling bearish toward stocks, now is an excellent time to get in on the precious metals market. Click through to learn more about buying gold and silver goods.