Tag Archives: HUISH

Why We’re Forecasting Gold Prices to Soar 300% by 2020

Gold prices have been on a tear since Bitcoin fell $4,300 from its all-time high of more than $19,000 in mid-December.

Since Dec. 11, the price of an ounce of gold has climbed from $1,242 to $1,313 today (Jan. 9), for a gain of 5.72% over one month.

And this run-up is just the beginning to a gold bull market.

In fact, Money MorningResource Specialist Peter Krauth believes gold prices will riseto $5,246 by 2020. That implies a profit opportunity of 300% from current levels.

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Usually, investors flee to gold as a safe haven from market uncertainty and political turmoil. And with the stock market hitting record highs, many investors have looked past gold.

But Krauth sees three major catalysts pushing gold prices higher over the next several years.

Here’s what will drive gold prices up to $5,246 by 2020…

Gold Prices Catalyst, No. 1: Rising Inflation

Rising inflation will drive the price of gold higher in 2018.

Inflation is the rate at which the price of general goods and services increases. As the inflation rate rises, the purchasing power of the U.S. dollar decreases.

Right now, inflation stands at 1.7%, its second-highest level in the last five years. And as the stock market continues to climb higher, so will the inflation rate.

That’s why the U.S. Federal Reserve manages inflation by raising interest rates. This has kept inflation from rising too quickly, even as the economy grows.

Urgent: Executive Editor Bill Patalon just saw something on his precious metals charts he’s only seen twice in 20 years. He calls it the “Halley’s Comet of investing” – and it could lead to windfall profits. Read more…

But there’s been a growing sense of uncertainty among investors as the stock market keeps hitting record highs. This often convinces people the economy is growing unstable, which can cause investors to exit the stock market.

Since assets like gold are considered safe havens during times of economic uncertainty, gold prices will rise as people protect themselves.

And that’s only the first reason we’re raising our gold price forecast…

Gold Prices Catalyst, No. 2: Fewer Short Bets

Reduced short selling – or traders betting prices will fall – in the gold market also indicates the price of gold will rise over the next three years.

Over the last year, the number of short positions on gold stocks has fallen. One indicator of short interest is the Gold BUGS Short Index (NYSE: HUISH). This index tracks short selling on mining firms that specifically refuse to cut gold production based on gold price movements. In the last 12 months, HUISH has dropped 9.27%, indicating short interest in the broad gold sector is falling.

This shows a shift in sentiment from bearish to bullish for gold.

Canadian gold mining company NovaGold Resources Inc. (NYSE: NG) shows an even starker change in sentiment. In the last six months, the volume of short bets on the stock declined 32.75%, from 19.05 million shares to 12.81 million.

But wait till you see this shocking trend, which predicts when gold prices will rise…

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How to Profitably Invest in Gold Mining Stocks with This Winner

Gold is back on everyone’s list as a must-have investment this year, and one of the best ways to profit from rising gold prices is to invest in gold mining stocks.

Gold prices are up 6.3% since hitting a five-month low on Dec. 12. And this gold price rally is only just beginning.

Money MorningResource Specialist Peter Krauth predicts we are entering a gold bull market that could last until 2020, at least.

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While investors can always invest in gold by owning physical gold or gold-backed exchange-traded funds (ETFs), buying the right gold mining stocks can be an even more lucrative way to profit from the rising price of gold.

Gold miners become more profitable when gold prices rise, and well-managed companies with fertile mines can see their share prices rise much faster than gold.

Free Book: The secrets in this book helped one Money Morning reader make a $185,253 profit in just eight days. Claim your free copy…

Since gold prices began to rally on Dec. 12, the price of gold is up 6.6%. But the Van Eck Gold Miners ETF (NYSE Arca: GDX) is up 11.3% in the same time. And since GDX tracks the entire gold miners index, it’s weighed down by poorly run or unprofitable companies.

That’s why we’re going to show you one of the best gold mining stocks to buy in 2018.

But first, here’s why the gold price rally is just getting started…

Why the Price of Gold Will Soar in 2018

Sincegoldhit its recent low of $1,045.40 in 2015, the precious metal has been on a bullish trend, with a 19.1% uptick in value.

In fact, right now could be just the beginning of gold’s price rally.

Krauth sees the current bull market as something similar to the 1970’s, where gold prices soared 700% before peaking in 1980. If the current gold bull market is anything like the one in the 1970s, then investing in gold in 2018 could be a very profitable decision for investors.

Investing in gold can be so profitable, because gold is more than just a shiny object that we pull from the ground.

The precious metal is used to both store wealth and is a component in manufacturing everything from jewelry to electronics. Those factors help push up demand for gold, which boosts its price.

But it’s gold’s use as a store of wealth and a hedge against uncertainty that’s going to help boost its price in 2018.

There are three reasons we’re expecting demand for gold to surge.

First, the value of the U.S. dollar is falling.

The U.S. Dollar Index (DXY) is steadily declining. Between January 2017 and January 2018, the DXY is down nearly 10%.

As the dollar weakens, gold becomes more valuable.

Don’t Miss: 10 Reasons Why Gold Could Hit $3,000 an Ounce

Second, investors are starting to flock toward gold.

Another bullish indicator for gold prices in 2018 is investor trends. And right now, investors are moving into long gold positions.

Check out the Gold Bugs Short Index (NYSE Arca: HUISH). This index tracks the short positions taken on gold investments. Right now, HUISH is down 11.25% since this time last year, which means investors are pulling out of short positions on gold stocks.

That’s a sign people who are putting money in the game expect gold prices to keep rising.

Third, turmoil across the world is raising uncertainty.

The threat of war with North Korea, the collapse of Venezuela, or even the potential for a stock market correction this year are all catalysts for gold prices.

If any event threatens stability or causes investors to worry about the future, gold’s value goes up. Because gold is seen as a hedge against destabilizing events, investors buy up gold positions when uncertainty rises.

And 2018 will be no different…

That’s why Krauth believes that we will see gold prices reach $1,400 in the first half of the year, which is about 12% above the current price. However, by the end of 2018, he predicts that gold will hit as high as $1,500, which is 18% above our current level.

These coming gains in gold prices make now the perfect time to invest in the right gold mining stocks, which Krauth believes are undervalued relative to the price of gold…

Invest in Gold Mining Stocks with Our Top Pick

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This “Safe” Investment to Make in 2018 Shows Triple-Digit Gains by 2020

Investors flock to stocks because they potentially offer lucrative growth, like the 55% gains of Amazon.com Inc. (Nasdaq: AMZN) just in 2017 alone. But stocks can also be volatile. Trivago NV (Nasdaq: TRVG), for instance, is down 44% on the year, and there’s a list of plenty of other underperformers in 2017 that have lost investors’ hard-earned money.

But Money Morning Resource Specialist Peter Krauth projects a safe investment to make in 2018 will also provide savvy investors long-term gains…

safe investments to make in 2018moneymorning.com/wp-content/blogs.dir/1/files/2017/06/fine-gold-bar-75×50.jpg 75w” sizes=”(max-width: 300px) 100vw, 300px” title=”safe investments to make in 2018″ />We’re talking about gold.

In the short term, he projects gold prices will climb to $1,350 by the end of 2017. From today’s prices of $1,252.20, that’s a potential profit of 7.8%.

Not bad, but it gets better.

By 2020, Krauth projects gold prices will climb more than 300%. Not only will the precious metal protect your portfolio in the next three years against volatility in the stock market, but it can also net you a triple-digit return.

But don’t take my word for it. Here are the three reasons why our Krauth projects gold prices will skyrocket, as well as his exact gold price prediction for 2020….

Gold Prices Will Climb Triple Digits, Reason No. 3: Inflation

Krauth says the first reason gold prices could skyrocket in the next three years is because of inflation.

Inflation is the rate at which the price of services and general goods increase, which means it takes more money to buy the same things.

For example, the average daily rate of U.S. hotels in January 2011 was $96.64. Six years later, in January 2017, the average daily price was $120.72. That same $96.64 from 2011 would not be enough to cover the cost of a hotel room six years later, even though the service is roughly the same.

We have inflation thanks to the U.S. Federal Reserve, which prints more money whenever it needs to give the economy a boost. That eventually makes goods and services cost more, weakening the value of the dollar.

But the Fed can’t manipulate gold. There’s only a finite amount, and no one institution controls it.

The uncertainty makes assets like gold a safe haven, and as the demand for gold increases, investors are willing to pay more to own the precious metal.

Sensing a spike in gold prices, there are actually fewer investors willing to short the precious metal…

Gold Prices Will Climb Triple Digits, Reason No. 2: Fewer Short Bets

The second reason Krauth sees gold prices climbing is the number of short positions on gold stocks, which has fallen. That means fewer traders are hoping to make money from falling gold prices, a sign that gold prices are about to rise.

For example, the short bets on Canadian gold mining company NovaGold Resources Inc.(NYSE:NG) have declined 79% in the last 12 months.

And a broader indicator that short interest in gold is decreasing is the Gold BUGS Short Index (NYSE:HUISH).

This index tracks short selling on mining firms that specifically refuse to cut gold production based on gold price movements. In the last 12 months, the price of HUISH has dropped 12.43%, indicating short interest in the broad gold sector is falling.

Urgent: Executive Editor Bill Patalon just saw something on his precious metals charts he’s only seen twice in 20 years. He calls it the “Halley’s Comet of investing” – and it could lead to windfall profits. Read more…

Inflation and short interest are two strong indicators gold prices can climb, but wait until you see the third…

Why Gold Prices Will Climb Triple Digits, Reason No. 1: Interest Rates

Over the last 30 years, Fed interest rate hikes have been followed by strong gains by gold.

Now, it’s important to note that gold prices can skid before a rate hike. But after the actual rate increase, they will rally.

You can see in the chart below that this is supported by 30 years of data.

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It looks like history will repeat itself, as gold prices peaked after the Fed’s Sept. 8 meeting. Gold prices climbed to $1,349.90 on Sept. 8, but prices right now are hovering around $1,250.

If gold prices behave like they have since 1986, then they should rally following the December rate hike.

Now that you know the three reasons why gold prices are set to skyrocket, here’s our triple-digit price target for 2020…

Our Bold 2020 Gold Price Target Shows Gains of More Than 300%

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