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5 Divident Stocks T0 Own Forever
Good News for Gold Bulls: Big Banks Make Case for Higher Gold Prices Lombardi Letter 2021-08-04 13:40:36 gold prices gold price Big banks continue to keep the stance that gold price will move higher. This is good for those who own gold. Here’s the full story and what investors need to know. Commodities,Gold https://www.lombardiletter.com/wp-content/uploads/2020/11/closeup-shiny-6-gold-bar-1-kg-on-white-background-with-clipping-path-gold-bar-coin-bullion-golden_t20_3gl8o7-150x150.jpg

Good News for Gold Bulls: Big Banks Make Case for Higher Gold Prices

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Good News for Gold Bulls: Big Banks Make Case for Higher Gold Prices

These 3 Banks Are Convinced Gold Prices Will Remain Above $2,000 in 2021 & Beyond

Gold investments have done really well so far. If you bought the yellow precious metal in the past five years, you could be sitting on hefty gains. But this may not be all; much higher returns could follow.

Even the big banks say the bull run in gold isn’t done yet. Each day, some big bank with global operations comes out in favor of owning the precious metal.

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5 Divident Stocks T0 Own Forever

Goldman Sachs Group Inc (NYSE:GS), is bullish on gold. The bank thinks gold prices could hit $2,300.00 per ounce in 2021. Analysts at the bank said this: “In our view, the structural bull market for gold is not over and will resume next year as inflation expectations move higher, the U.S. dollar weakens and E.M. retail demand continues to recover.” (Source: “Goldman Sachs Holding Firm with $2,300 Gold Price Forecast as Inflation Pressures Build,” Kitco Metals, Inc., November 13, 2020.)

A managing director at Royal Bank of Canada (NYSE:RY) Wealth Management, George Gero, said that, after the U.S. election, traders would be looking at “stimulus legislation, inflationary prices [and] large debts, so gold can resume the upward trend towards $2,000.” (Source: “Gold futures Climb for the Session, but Lose 0.8% for the Month,” MarketWatch, October 30, 2020.)

Canadian Imperial Bank of Commerce (NYSE:CM) is also bullish on gold, expecting the price of the precious metal to be above $2,000 until 2024. The bank recently said, “We forecast real rates, the primary driver for gold prices, to remain under pressure for the next several years as governments tackle heavy debt loads and focus on reducing unemployment numbers. The US Fed Reserve will likely reiterate a ‘lower for longer outlook’ particularly in light of the global economic backdrop, which we continue to view as positive for gold.” (Source: “Gold to Rally Towards $2300 in 2021 – CIBC,” FX Street, November 25, 2020.)

Gold Price Outlook: $3,000 Could Be Possible Sooner than Expected

Dear reader, the three banks mentioned above are just a few examples; the list of banks that are bullish on gold is big, and getting bigger each day.

Why should you care what the big banks think about gold? Those banks have a lot of say in the financial markets and institutional investors listen to them. Back in 2013, it was the big banks turning bearish on the yellow metal that led to a big sell-off.

The banks being bullish on gold means things are bullish for those who own the metal. The big banks remaining bullish could bring in more buyers, which would send gold prices even higher. I think there isn’t enough money allocated to gold just yet. There could be a lot more gold-buying in the coming months and quarters.

I’ll end with this: over the past few weeks, gold has faced some selling pressure, and this may have made some investors nervous. But know that that, at $1,800 per ounce, gold is cheap. We could be looking at $3,000-per-ounce gold much sooner than many expect.

That said, I suggest looking at gold mining stocks; they still look attractive.

Across the board, mining companies are in good shape. Gone are the days when they were struggling to survive. With the higher gold prices, many of them have been making immense profits. Some are even turning into cash-generating machines and increasing their dividends. Solid rewards are still possible.

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