What’s the Next Move for Gold?
In a recent interview with Bloomberg, legendary trader and hedge fund wizard Paul Tudor Jones said:.
“I think one of the best trades is gonna be gold. If I had to pick my favorite [bet] for the next 12–24 months, it’d probably be gold.”
I couldn’t agree more. In fact I’ve been pounding the table for Wealth Watch readers to pile into the yellow metal for over a year now. Gold then was then below $1,200 an ounce.
Ditto for silver, platinum and best of all mining stocks.
Gold Has Everything Going for it Today
Jones went on to say that gold “has everything going for it in a world where rates are conceivably going down in the United States and going to zero.”
Then he offered a fearless forecast, that if gold “goes to $1,400, it goes to $1,700 rather quickly.”
This is where I must part ways with the legendary Paul Tudor Jones, because, if anything, I believe he is being way TOO conservative with his target.
I expect gold has the potential to rally beyond $2,000 an ounce to new all time highs, and probably much sooner than most folks think possible.
But even at that lofty level, gold is just getting warmed up!
Gold’s Journey From Here…
Gold has already come a long way, gaining almost 20% from last year’s low.
After such a move, any market would need to catch its breath before continuing the gains. Gold is no exception.
That’s why I suspect gold could take a breather temporarily, perhaps trading in a sideways range for a while, or even pulling back near the recent breakout at $1,360 before surging to new highs.
But with the Fed prepared to cut interest rates again, and with bond yields and the dollar already tumbling in response, the sky’s the limit for gold.
The lower interest rates go, the more valuable gold becomes as the only true store of wealth.
That’s why I expect gold could ultimately surpass $5,000, or even $10,000 an ounce before this great bull market is over.
Indeed, the sky IS the limit!
If you didn’t already take my advice, be prepared to move quickly on the next pullback, or you’ll miss out on some very nice gains with gold.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch