Gold (GLD) Had a Ludicrous Run Already, And With Inflation Coming in Hot It’s Going to Keep Going Up

24/7 Wall St. Key Points:

• Gold prices are approaching $3,000 per ounce, driven by central bank purchases, investor hedging against inflation, and heightened geopolitical uncertainty.
• ETFs like SPDR Gold Shares (NYSEARCA: GLD) offer retail investors exposure to gold’s rally, while miners such as Barrick Gold (NYSE: GOLD) and Agnico Eagle (NYSE: AEM) provide dividend-paying alternatives.
• Analysts see further upside potential for gold if inflation persists or geopolitical risks escalate, though key price levels like $3,000 may trigger short-term profit-taking. 
• If a crisis is around the corner, make sure you speak to a financial advisor and make sure you’re positioned to weather the storm. Smart Asset can connect you with 3 serving your area in just a few moments. Click here to get started (sponsor)

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Transcript:

[00:00:04] Doug McIntyre: So huge run in gold. people don’t look at people say, well, I want to buy gold, but they don’t in some ways think about it. Central banks are massive holders of gold and some of those, and many of them are significant buyers. Gold jewelry will never go out of style never ever a lot of people buy gold as an inflation hedge I don’t quite understand why because you know if there’s a lot of inflation you’re gonna take a gold bar to the grocery store I’m not sure

[00:00:39] Lee Jackson: Yeah,

[00:00:42] Doug McIntyre: But what you do have is you have a number of forces pushing gold up.

[00:00:49] Doug McIntyre: So where does gold go from here? Gold’s had a ludicrous run.

[00:00:54] Lee Jackson: Well, it’s closing in on 3000 an ounce. And I remember when we went on the, went off the gold standard, when Nixon did this, it was 30 an ounce. So all you math majors can do that. And of course that’s been in 50 years time, but it’ll be interesting.

[00:01:09] Lee Jackson: I think the whole thing of the president saying, I’m going to go to Fort Knox. So we’re going to see what’s in there. Well, better look out for gold finger, but they, I get the sense it’s all there. And one thing I kind of find interesting is they could monetize that at least some of those huge holdings that are in there that are, it’s gold they’ve had for years.

[00:01:31] Lee Jackson: I mean, why don’t they monetize some of that and pay down the debt with it? But I don’t think they’ll do that.

[00:01:37] Doug McIntyre: I don’t either but it’s a good idea because I’m sure that they didn’t pay three thousand

[00:01:42] Lee Jackson: I’ll guarantee you they didn’t pay three thousand. I bet they own a ton of that gold in fortnight I remember a gold finger in the movie you kids go out and watch.

[00:01:49] Lee Jackson: This is James Bond in the 60s It was full then at thirty dollars an ounce or whatever it was back then so they won’t do it, but I think it would be a good idea because why do we need that much gold?

[00:02:02] Doug McIntyre: Now, are you still a gold bear?

[00:02:06] Lee Jackson: No, no, no, no. Are you positive ever since it broke out?

[00:02:10] Doug McIntyre: Okay. So you think it can still run?

[00:02:12] Doug McIntyre: You, don’t think it’s, an essence, get a cap. You think that there’s enough macroeconomic news that it’s.

[00:02:19] Lee Jackson: Now the big upside, I mean, remember it was 2,400 a year ago, or, it’s 18 months ago and it’s had a huge run. But I think there’s still, the best way for our viewers to buy gold.

[00:02:34] Lee Jackson: Unless you want to go down to the guy down the street that says bought and sold is to buy the, ETF, the GLD, simple GLD, because they hold physical gold now. It doesn’t pay any sort of dividend, like a minor pays. but that’s a good way to do it. But yeah, does it go from 3000 to 5,000?

[00:02:55] Lee Jackson: I don’t think so, but who knows? Maybe it could, but I think there’s still some upside to it. As long as things remain as dicey as they are in the world, it’s probably something to look at. And again, you can always look at the miners, because the big boys all pay, Agnico, Eagle, and Barricks, and all those simple G O L D.

[00:03:15] Lee Jackson: They all pay pretty dependable dividends. And some of those guys aren’t hedged, so they haven’t sold forward contracts on the upside pricing. that’s another way to play it. But yeah, I think gold and silver. And silver as well, which is a lot cheaper than gold, is still probably another smart play because for silver and copper, a lot of that’s industrial usage.

[00:03:38] Lee Jackson: It’s not just in Europe, piling it in there. It’s a hedge against their currency.

[00:03:45] Doug McIntyre: Well, if you think inflation’s gonna heat up. You gotta look at it.

[00:03:49] Lee Jackson: Yeah. it’s probably not a bad idea. And at 24/7, we’ve always recommended in a good allocation, asset allocation program to hold, 5% or hold 3% in your portfolio of gold or some, like the GLD, civil spiders, gold, ETF hold 3% or 5% at least it’ll give you, if the market, gets hammered, it’ll give you a little protection.

[00:04:15] Lee Jackson: And who knows, maybe there is more upside when it goes through. I’m sure that it’ll, when it hits 3,000, you can bet that there’ll be a ton of sellers. But I have to tell you something, that may be a chance.

[00:04:28] Doug McIntyre: If they go to Fort Knox and all that gold is gone, you watch the price of gold, then the price of gold will really move.

[00:04:35] Lee Jackson: It will really move, it will really move there. Respect there, but we’ll keep everybody, informed on what the status is when the president and whoever else is going to Fort Knox reports back to us.

[00:04:47] Doug McIntyre: I think what we’ll do is, you and I have never done any live casting. If we find out that they’re going to go down there, we’ll go on air live just before they show up.

[00:04:59] Doug McIntyre: So we can, in essence, be the voiceover of basically the gold due diligence inventory check. Yes, the gold inventory due diligence. Okay. We’ll do that.

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