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The Street: Gold Price Could Go as High as $10,000 Before Economy Recovers
Article by Daniela Cambonein The Street
We are fighting a third world war against the pandemic, an unprecedented event, and monetary policy response is set to drive gold prices to levels never seen before, this according to Frank Holmes, CEO of U.S. Global Investors.
“We still have negative real interest rates and that bodes extremely well for gold, so I think gold can be easily $2,700 like palladium was last year. It can be $5,000. I don’t know when the money printing stops, but it could be $10,000 to get the global economy back and functioning,”Holmes said.
Holmes’ comments come as the Federal Reserve recently announced $2.3 trillion in stimulus programs aimed at businesses and households, but the money printing won’t stop there, he said.
“What I do see is that the U.S. will spend over $10 trillion. Both the Senate, and Trump and Congress will spend $5 trillion when this is finished. We’ve seen the Federal Reserve also commit $5 trillion of expanding their balance sheet, so this is going to be unprecedented,” he said.
Holmes added that the pandemic has caused a global supply chain disruption that will also affect the gold industry.
“I think there’s huge supply disruptions around the world and I think that demand for gold is going to pick up much faster than the supply of gold is going to be coming out,” he said.
To read this article in The Street in its entirety, click here.
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