Investment management and advisory firm Goehring & Rozencwajg expects gold to reach record levels this year. “I wouldn’t be surprised to see a price of $3,000 this year,” said an executive at the firm. “It’s time people wanted to be bullish on gold.”
Gold heading for ‘record highs’ this year
Managing partner of investment firm Goehring & Rozencwajg, Leigh Goehring, shared her outlook for gold in an interview with Kitco News last week. Goehring has 32 years of investment experience specializing in natural resource investing. She co-directs the Goehring & Rozencwajg Resource Fund.
“Gold will hit all-time highs this year,” he began, noting that the metal peaked at $2,050 in August 2020 and again in March of last year. The executive told the news outlet:
This year we’re going to break the all-time high… It’s time for people to want to be bullish on gold.
He thinks the Federal Reserve will stop raising interest rates and might even start lowering them. “Then we will have another big inflation problem… This is the decade of inflation,” he warned. After a series of 75 basis point interest rate hikes, the Fed raised its benchmark rate by 25 basis points last week.
Goehring expects investors to turn to gold once they realize inflation won’t drop to the Fed’s 2% target. “Right now, when inflation goes up, the Fed raises rates and people sell gold.” he described, adding:
I think the psychology will change and inflation will rise, the Federal Reserve will not raise rates or lag behind, and inflation will become a real problem.
The investment manager compared the current situation to what happened in the 1970s. “After the Fed started aggressively raising rates starting in 1973, gold prices corrected themselves by 45%…When the Fed finally gave up a few years later, inflation year after year was still 5%,” he explained. Noting that the market will realize that the Fed’s rate hikes are ending and inflation hasn’t ended, the executive said: “Going back to the 1970s, when people saw inflation was still a big problem. , was when the price of gold started to go crazy after bottoming out in late 1976.”
While admitting that he doesn’t know “how high gold can go”, Goehring opined:
I wouldn’t be surprised to see a price of $3,000 this year.
The spot price of gold stood at $1,869 an ounce at the time of writing, and gold futures are trading at $1,882. Goehring isn’t the only one expecting gold to hit record highs this year. Market strategist Gareth Soloway believes gold will outperform in 2023. Rich Dad Poor Dad author Robert Kiyosaki said in January that gold could hit $3,800 this year. Meanwhile, Harry Dent has forecast that gold may fall to the $900 to $1,000 range over the next 18 months.
Do you think gold will hit $3,000 this year? Let us know in the comments section.
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