When gold rose to $1,931 an ounce, the highest settlement in history, it juiced the crowd expecting $2,000 an ounce soon.
Marketwatch reported that Goldman Sachs found that cheap. They think $2,000 is a no-brainer. They would rather hold their breath for $2,300 an ounce in the next 12 months.
The bank also lifted its silver outlook to $30 from $22 an ounce.
Their reasoning is no different from what we’ve been hearing. They said the relentless money printing by The Fed, rising geopolitical tensions, and social uncertainty will fuel the bull run.
A second factor was added to the mix. Goldman Sachs believes that the days of the US Dollar as the world’s reserve currency is numbered.
We, at Noble Gold, have talked about this before, the threat the Yuan poses against the dollar.
China has been building itself as an economic powerhouse for decades. It picked up every job other countries refuse to do. It manufactured every product the world consumes and offered alternatives to the ones some can’t buy.
China managed to make itself indispensable to other countries.
Even though that can hardly be said to be the fault of the U.S., our decision to cut ties with them was certainly one we made.
Other countries are now finding themselves needing more of the Yuan than the dollar but the shift is neither seamless nor immediate.
Covid-19 made the process even more complicated. Instead of China immediately being able to push Yuan to replace the Dollar, it now has to battle the horrors of Covid19, along with the rest of the world.
This has shifted Central Banks to look for the safest alternative, gold.
It’s no wonder Goldman Sachs thinks the push to $2300 will come sooner than later but we think $2300 is where Gold will settle.
It will push North of $2,500.
So, invest now while it is still flirting with $2000.