Analyst predicts gold prices rising to $3,000-$4,000

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May 7, 2019 1:49pm NYSE:GDX NYSE:GDXJ

NYSE:GDX | News, Ratings, and Charts

From Sarah Abu-Shaaban:  (Kitco News) – Amidst market pessimism, one expert sees gold prices climbing to record heights of $3,000-$4,000 an ounce in the future.”When gold launches higher, they’re all going to be winners,” said Daniel Oliver, founder and managing director of Myrmikan Capital, referring to gold investors.

“It’s just about the degree [in] which one is going to win more, and which one is going to win less.””Gold should be flying higher,” Oliver told Kitco News at this year’s Mines and Money conference in New York, “but here we are going down again.”Gold prices are trading steadily on Monday afternoon, last at a spot price of $1,280.30/oz.

“It is dire in that it seems so horrible. The whole gold community has been waiting for five years to break through $1,350,” Oliver said, “and we keep having these near-misses.”

The key is patience, he argues.

Oliver warned that as a short-term asset, gold does not tend to wield significant returns. “It’s like a premium,” he said, emphasizing gold’s potential as a long-term investment.

Stressing the metal’s significance, Oliver stated “the reason why mankind has used gold as money for 4,000 years is because it is the most stable element that is valuable.” He argues it is not that gold prices are moving around but rather dollar prices, which concurrently reflect on gold.

Oliver stated that the boom is inevitable. “It happened in the ’30s. It happened in the ’70s. It started to happen between ’08 and ’11, and it’s going to happen again.”

The SPDR Gold Shares(NYSE:GLD), VanEck Vectors Gold Miners ETF(NYSE:GDX), VanEck Vectors Junior Gold Miners ETF (GDXJ) was trading at $28.71 per share on Tuesday afternoon, up $0.22 (+0.77%). Year-to-date, GDXJ has declined -15.88%, versus a 8.23% rise in the benchmark S&P 500 index during the same period.

GDXJ currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #10 of 35 ETFs in the Precious Metals ETFs category.

This article is brought to you courtesy of Kilco.

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