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Even the Big Banks Drum Up $2,000 Gold Prices Now Lombardi Letter 2019-08-22 07:33:15 gold prices price of gold gold price Big banks, those that were bearish on the gold, are now turning bullish. This could be really good for gold prices. Here’s where the next big investment opportunity could be. Commodities,Gold https://www.lombardiletter.com/wp-content/uploads/2019/08/Even-the-Big-Banks-Drum-Up-2000-Gold-Prices-Now-150x150.jpg

Even the Big Banks Drum Up $2,000 Gold Prices Now

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Even the Big Banks Drum Up $2,000 Gold Prices Now

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Big Banks Turn Super-Bullish on Gold Prices

Gold has done very well so far in 2019, and things could get a lot better in the coming months.

You see, even the big banks are saying gold prices could go much higher. They are the ones who turned bearish on the yellow metal in 2013, and that led to a massive sell-off. Now they are favoring a $2,000-an-ounce gold price.

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In 2013, investors listened to the banks’ bearish take on gold and acted upon it. If those banks are turning bullish on gold now, won’t regular investors follow their lead?

These Big Banks Making a Bullish Case for Owning Gold

Here’s some perspective on what the big banks are saying about gold.

Daniel Ghali, commodities strategist at TD Securities recently said this: “We do think gold is on its way higher for the time being…Over the coming years as the likelihood of the unconventional policy becomes more of a reality, I could see a case for gold at $2,000.” (Source: “Gold could hit $2,000 in a world full of negative yields,” CNBC, August 13, 2019.)

Bank of America Corp (NYSE:BAC) is drumming for higher gold prices as well.

In a note to clients, Bank of America’s metals strategist Michael Widmer said, “At the same time, and perhaps perversely, such a sell-off may prompt central banks to ease more aggressively, making gold an even more attractive asset to hold. We have a relatively conservative 2Q20 forecast of $1,500/oz, but in this scenario, we see scope for gold to rise towards $2,000/oz.” (Source: Ibid.)

Goldman Sachs Group Inc (NYSE:GS), a bank notorious for calling gold a “slam dunk sell,” is now getting the gold fever as well. Analysts at the bank recently said that gold could hit $1,600 an ounce. (Source: “Goldman Sees Gold Prices Climbing to $1,600,” Bloomberg, August 7, 2019.)

But they didn’t just stop there. Analysts at Goldman Sachs also said, “If growth worries persist, possibly due to a trade war escalation, gold could go even higher, driven by a larger ETF gold allocation from portfolio managers who still continue to under-own gold.”

Mind you, these are not the only big banks saying the price of gold could go much higher. The list of big banks that are bullish on gold is getting bigger on an almost-daily basis.

Mining Stocks Could Be Next Big Opportunity

Dear reader, I am not one bit surprised by what the big banks have been saying. What they’re saying now, I have said several times over the past few years.

I expect the big banks’ bullish sentiment to drive buying in the gold market. This could be really good for gold. The investors who ditched the yellow precious metal back in 2013 could come back again.

With all this happening, I believe the biggest returns will come from mining stocks. As gold prices increase, mining stocks could also surge.

The price of gold has increased about 20% year-to-date. At the same time, several mining stocks have more than doubled. Imagine what would happen to mining company shares if gold hits $2,000 an ounce?

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