Goldman Sachs recently cut its gold price target to $4,800/oz.
That’s still not bad, given the current spot price of around $4,000. But don’t get wrapped up in the short run. Gold’s long-term fundamentals continue to point much, much higher. For example…
Hardly anyone currently owns it:
Gold’s price has historically tracked the global money supply, which continues to rise inexorably.
China continues to buy gold aggressively. The following chart runs through September. In October, the PBOC bought another $25.8 metric tons.
US official gold reserves — assuming they actually exist — used to cover public debt reasonably well. But not anymore:
Conclusion
As long as deficits and money printing continue at their current pace, gold — the main hedge against currency debasement — remains a “must-own” asset. And the high-quality gold/silver miners look cheap at today’s prices.
Don’t jump in with both feet, but do add opportunistically on corrections.
Comments
Log in or sign up to join the conversation.