The New CS Board

[jumanji0881]

"Inflation beast is out" and gold price looks to $3K in response to Fed's policy, says mining strategist : https://www.kitco.com/news/2021-12-10/-Inflation-beast-is-out-and-gold-price-looks-to-3K-in-response-to-Fed-s-policy-says-mining-strategist.html

My Comment : I don't think the Fed can thread the needle. If they raise rates, stocks crater. If they soft petal, inflation advances.

Excerpts:
"The inflation beast has gotten out, and it's going to take a lot of effort to get it back into its cage," Ecclestone emphasized. "This will ultimately impact property markets. It's going to impact companies that are highly leveraged. We are already seeing big property crashes in China that are linked to overextended property developers."

Ecclestone pointed out that investors will look toward gold if property prices start to drop. "If inflation keeps rising, people are going to be trying to figure out where they should invest their money, particularly if property prices stop going up or start to go down," he added. "Property has been a big haven for investors for the last 30 years in most western economies. They will be looking for the next sure bet."

Ecclestone noted that most investors use gold as a savings method. "Traditionally, gold has been a hedge against inflation. There is a mistaken view that higher interest rates would impact the price of gold because supposedly people are borrowing money to buy gold which is totally a bogus construct," he said. "Most people are using gold as a savings method."

Over the next year, Ecclestone expects gold to reach $2,000 an ounce and then climb towards the $3,000 level in the next four years after that.

"Gold ultimately needs to rise because people do not have faith in keeping their money in fiat as a means of protecting their currency," he stressed. "I would not be surprised if we see gold above the $2,000 level over the next 12 months. My five-year outlook for gold is $3,000 per ounce."

Ecclestone sees silver rising back towards $30 next year and then advancing to $40 by 2026.