Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
Gold, one of the commodities largely used as a hedge against the volatility of traditional equities and financial markets, is trading at a price just 1% below its 8-years high. According to a portfolio manager at VanEck, however, the price is headed to at least $2,000.
Gold Price At 1% Below 8-Years High
Gold has traditionally been regarded as one of the safest assets to invest in as its price keeps on growing over the long term.
At the time of this writing, gold trades at around $1,680 per ounce, but on March 8th this year, it peaked at $1,703, which is just one percent less than its 8-year high. In other words, the last time gold was trading at this price was all the way back in 2012.
Gold Price. Source: TradingView
Its value is constantly brought up in the past couple of months as the coronavirus outbreak caused major turmoil in the financial and stock markets.
According to the popular economist and renowned author, Peter Schiff, the only good option for the US to avoid hyperinflation is to bring back the gold standard.
Gold Price Heading To $2,000, VanEck PM Says
And while gold maintains its status as a safe haven, Joe Foster, a portfolio manager at Van Eck International Investors Gold Fund, believes that its price is going higher.
He thinks that gold producers appear better positioned to weather an expected recession thatâs brought by the COVID-19 pandemic compared to other sectors of the economy. Citing his companyâs balance sheets, expectations, and current profitability, he suggests that the price for the precious metal is headed to at least $2,000.
âThe industry is probably better positioned than just about any industry to weather this crisis. [âŠ] Balance sheets are healthy pretty much across the board. Debt ratios are at a fraction of the average for the S&P 500. Financially, theyâre in very good shape.â
What is more, gold producers went through a period of âbelt-tighteningâ and debt-reduction when the price of gold crashed several years ago. Since then, however, gold has risen back above the all-in sustaining costs for the majority of producers, according to the report.
Enjoy reading? Please share:âAt $1,600, all of these companies are generating a lot of cash, even though the shutdowns.â â Said Foster.
Telegram
The post Gold Price Now 1% Away From 8-Year High: $2,000 Is Next According To VanEck PM appeared first on CryptoPotato.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.