Central Banks Will Fuel Gold Back to Record Highs (GLD, SLV, GS)
Goldman Sachs (NYSE:GS) analysts are predicting a short term move to $1,825 for gold in the next three months. The logic behind the call is that negativity surrounding the debt ceiling debate, even more easing by central banks, and a weaker than expected U.S. economy in the first half of the year, are all positives for the precious metal.
Longer term Goldman’s commodity strategists think gold could fall as low as $1,200 an ounce by 2018.
Jeff Kilburg, founder & CEO of KKM Financial, thinks Goldman is right; to a point. “Every central banker globally is trying to devalue their currency so their products and exports can be sold at a better price,” he notes in the attached video. Weaker currencies mean higher prices for all commodities, especially gold, which is regarded by some as the one true currency.
Related: SPDR Gold Trust (NYSEARCA:GLD), iShares Silver Trust (NYSEARCA:SLV)