Here's How Gold Could Hit $5,000 In 2021
- FN Media Group Presents Oilprice.com Market Commentary
LONDON, Nov. 17, 2020 /PRNewswire/ -- Trump loves gold. The White House decor is now a shrine to the precious metal, and there's enough gold adorning Mar-a-Lago to fill the central bank coffers of your average country. Even his private plane boasts gold-plated seatbelt buckles, gold bathroom fixtures, and gold silk wallpaper. Mentioned in today's commentary includes: Newmont Corporation (NYSE: NEM), Eldorado Gold Corporation (NYSE: EGO), Pan American Silver Corp. (NASDAQ: PAAS), Royal Gold, Inc. (NASDAQ: RGLD), Wheaton Precious Metals Corp. (NYSE: WPM).
Gold loves Trump, too. It's been a banner year for the world's number one safe-haven asset. Gold has experienced a meteoric rise, hitting a record in August when it was up 40% on the year. An unprecedented pandemic-induced economic meltdown, a weakening dollar, and the cobra effect of massive a government stimulus have sent financial markets into a tailspin.
The fear index is at an all-time high, and it's poised to get worse. Investors are terrified of a contested presidential election. Wall Street giants, most recently UBS--are telling clients to flee the markets and buy up gold. Trump, for all his love of gold, is spurring the precious metal on by pumping the fear index further with suggestions that his defeat might be the result of a fraudulent vote. In times like these, gold isn't just a safe haven, it's a massive opportunity. But here's what gold loves even more: The transition from Trump to Biden.
Why? Because Trump put in play a crisis situation in which investors have been fleeing to their favorite safe haven. And now Biden is likely to push gold even further by unleashing another substantial monetary stimulus—one of gold's favorite things.
Amid this perfect setup, the most rewarding potential opportunities are often found among the junior mining stocks, some of which are set to outperform the market in this environment. But the biggest prize is the junior miner that's made the next major gold discovery—a discovery that could add billions of dollars to its market cap.
We recently saw a stunning high-grade gold discovery by Amex Exploration in one of the most prolific venues in the world--Quebec. Many probably missed the massive 7,000% upside on that one. But another company is hoping for a repeat, and even several Amex directors and shareholders are piling into it.