Supporters of $3,000 Gold Continue To Grow!

Supporters of $3,000 Gold Continue To Grow!Famed investor and Galaxy Digital CEO/Co-Founder, Michael Novogratz has joined the growing fray of officials anticipating a bull run for gold beyond $3,000 by the end of the year. Having breached the 2,000/oz. barrier and achieved a new high last week, it has since settled back to consolidate, just under that level. Novogratz went on to state that the upcoming Fed meeting could provide the “juice that accelerates gold.” He went on to say that “once you take out old highs in markets it’s really hard to figure out where they could end.” As much as President Trump would like to see even more aggressive moves to support the stock market in advance of the election, Novogratz thinks the Fed will be more dovish with its September meeting planning.

Novogratz is also offering strong support for the new gold/bitcoin “safe haven” diversification combination. He is a well-known bitcoin bull and in a recent Bloomberg interview, while appreciating the historic safety and security of gold, he indicated that he likes the long term growth potential for bitcoin, not instead of but in addition to gold, because it’s “harder to buy,” adding that bitcoin has a $220 billion market capitalization, while gold is above $10 trillion. He admits that bitcoin’s resulting catch-up game is a major factor supporting his gold prediction. And government bonds paying investors a negative return has cut the legs out of the “gold is a financial asset that offers no income” argument. He noted that Ethereum “has been on a tear” lately, but to be cautious with it and other cryptocurrencies, because “We are still in the venture stage in everything but bitcoin.”

The growing weakness of the U.S. dollar against a large range of global currencies, combined with continuing unemployment, concern for pending inflation and growing bearish sentiment surrounding the U. S. dollar has gold and bitcoin poised for immediate demand as protection against the potential for growing inflation and currency debasement. Billionaire investor Jeffrey Gundlach is also long-term bullish on gold according to Yahoo Finance, stating that “Gold will ultimately go much higher because I think the dollar’s going to go much lower.” He feels the main and what looks to be a continuing drag on the dollar is the U.S. budget deficit, specifically its explosive growth since the appearance of COVID-19. After bailing out of every airline stock on the planet and publicly bashing gold for years, even Berkshire Hathaway’s Warren Buffett has done an about face and  is returning to gold investments.

As economic fallout from the coronavirus pandemic continues to mount and bailout funds continue to be printed, growing inflation and reduced-value dollars will push the value of gold higher. Regardless of who wins the November election, the ongoing ramifications of these factors are all but inevitable. Economics 101 reminds us that increased demand generates increased cost. Don’t get caught without a chair when the music stops. Call the precious metal experts at American Bullion now, before prices go parabolic. Call (800) 653-GOLD (4653).

Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.