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Is the Rally for Gold Material Just Getting Started?


Updated: March 21, 2022

Record Gold
Editor’s Note:

Gold material futures settled higher today in what many investors are viewing as a trend that will continue, at least in the near future. Whether it’s the threat of a digital currency, the pull back in the U.S. dollar or the volatility of the global economy that is boosting the appeal, it looks like this precious metal will continue to rally in 2016.

After three consecutive years of losses, gold rallied 20 percent during the first quarter of the year —and a bevy of experts and billionaire investors believe the surge will continue. On Tuesday’s CNBC segment, “Futures Now,” Solita Marcelli of J.P. Morgan Private Bank’s said that the firm is recommending clients to position for a long bull market for gold material, citing the potential for a price of $1400 per ounce this year.

Paul Singer, billionaire hedge fund manager for the Elliott Management Corporation, which oversees approximately $28 billion, is another firm believer in gold’s potential for a longer rally. As the world’s central banks focus on debasing currencies, he is one of the many billionaires, including Stan Druckenmiller, who are hedging their portfolios with gold. Druckenmiller, whose largest currency allocation is currently gold, was recently quoted saying that the bull market for stocks was exhausted.

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French bank BNA Paribas SA also recently predicted the price of gold surging to $1400 per ounce in the next year, citing concern among investors over the state of overreaching central bank policies and negative interest rates. In a brief presented at a conference in Singapore in April, Prashant Bhayani, Singapore-based chief investment officer for Asia at BNP Paribas Wealth Management stated that the firm has been recommending gold material to investors who want to hedge their portfolios, as they believe it has returned to its safe haven status.

The cost of gold is currently more than 30 percent less than its highest price in September 2011. It seems there is much room to grow as global risks continue and stocks underperform. For more information or to buy gold products online, click here.

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