Home / Investing / "Boiling conflict" will push gold to more than $ 2,000 in 2020 – Investment Watch

"Boiling conflict" will push gold to more than $ 2,000 in 2020 – Investment Watch


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Since Birch Gold Group

This week, Your News to Know summarizes the latest major news related to gold and the economy in general. Stories include: The CIO of the world's best performing fund sees gold reaching $ 2,000, gold remains the ideal asset, and the £ 5 gold coin of the Victorian era reaches nearly $ 700,000 at auction.

Bridgewater CIO: gold could reach $ 2,000 due to lax monetary policies and geopolitical tensions

At the end of 2019, Bridgewater founder Ray Dalio urged investors to increase their gold allocation, forecasting that global central banks will bring a new period of lax monetary policies. Now, the investment co-director of the high-yield fund has shared similar views, stating that gold seems ready to reach $ 2,000 Due to two key controllers.

In a recent interview, the Bridgewater CIO, Greg Jensen, said that geopolitical tensions and central bank flexibilization will be the key factors to consider as gold continues with a trend above last year's peak of $ 1,553, the highest level since 2013. For Jensen, both the threat of a military conflict with Iran and trade disputes with China are likely to remain powerful drivers for the rest of the year.

The former had raised gold to a maximum of seven years of more than $ 1,600 per week in 2020, while the latter acted as a constant source of support throughout the past year. Jensen believes that none of these situations have been resolved and he sees them as important incentives for the demand for safe shelter going forward

In addition to geopolitical tensions, Jensen hopes that the central bank's flexible policies will continue to raise gold prices as they had done for most of 2019. Jensen believes that the Fed could not only reduce interest rates to zero for combat a possible recession, but also allow a period of high inflation, which would act as the main sources of gold earnings. Dalio and Jensen join in their opinion by fund manager Jeffrey Gundlach, as DoubleLine CEO said last year that he is making long gold bets above expectations of a weakening dollar.

After lowering the $ 1,600 level, gold remains the best safe haven option available

Gold may have withdrawn from the $ 1,600 level as tensions with Iran appear to have subsided, but analysts at a precious metal refining company see many reasons for gold to have an exciting year. In their 2020 outlook released last week, MKS PAMP Group analysts said they remain optimistic about gold, silver and palladium for the rest of the year.

In the report, the team stated that uncertainty will continue to dominate investor sentiment and continue to drive the strong purchase of safe haven Seen in recent times. In addition to tensions with the Middle East, analysts cited the upcoming US presidential elections as another potential source of high volatility. In addition, the team expects central banks to continue supporting gold prices on a large scale, both through accommodative policies amid weak global growth and through their all-time bullion purchases.

With so many tail winds, analysts forecast an average of $ 1,636 this year and expect the metal to rise to $ 1,780. Given the current scenario, MKS PAMP believes gold will remain safe above the $ 1,520 support level in the case of any pullback.

Regarding other metals, MKS PAMP said that silver will continue to drag gold as it progresses, citing solid foundations and correlation with gold as the reasons why silver will reach $ 21 and average $ 18.62 this year.

The £ 5 gold coin minted during the Victorian era is sold for a record of £ 530,000 ($ 690,000)

In 1839, the British Royal Mint, directed by chief engraver William Wyon, created a limited series of 400 gold coins of £ 5, called "Victory One and the Lion." Today, these coins are considered some of the rarest and most valuable numismatic pieces in equal parts due to their scarcity and the incomparable complexity of their design.

The obverse of the coins depicts Victoria as Una of the Elizabethan poem "The Faerie Queene" by Edmund Spenser, while the reverse features a portrait of the 20-year-old queen. Representing the height of the power of the British Empire during the Victorian era, it is known that the coins reach amazing prices at auctions, while enthusiasts rush to get a piece of the famous minting.

However, the last sale of one of the £ 5 gold coins managed to exceed all expectations by opting for record price of £ 532,000 ($ 690,000). Auctioneers believed that the currency would sell for around £ 190,000 ($ 247,000), but managed to exceed the previous highest figure of £ 421,000 ($ 547,000).

Heritage Auctions, based in the United States, which measured the sale, revealed that the coin was sold by a private owner and praised it as one of the best numismatic pieces ever to come from Britain.

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