Why gold stocks and ETFs are poised for growth with bets rising for gold to hit $2,500, possibly $3,000
Gold continues to hit new blue sky for a myriad of reasons and investors in gold stocks are reaping the rewards. Yet it appears gold ETF demand still has not caught up, which reflects that retail investors and many investment managers have not yet caught up to the potential opportunity.
Why is gold buying increasing? Well, China's central bank, the PBOC China is continuing to buy more gold, for the 17th month, while other central banks have been buying gold as well as a store of wealth, amid rising geopolitical tension, while also buying the commodity as it traditionally does well when the US Fed cut rates. Plus, Gold is also benefiting from the US dollar continuing to fall from its March high (gold and the USD have an inverse relationship).
If history repeats itself, gold could potentially not only rise above $2,500 by potentially top $3,000 per ounce. That's if history repeats itself and gold rallies to new records, as gold previously did the last time the Fed cut US interest rates.
Gold stocks to watch that are deemed undervalued by the market (consensus) include Newmont ( $Newmont Corp(NEM.AU$ and $Newmont(NEM.US$ ) which is the world;s biggest producer of gold, as well as Barrick Gold ( $Barrick Gold(GOLD.US$ ) which is the second biggest gold producer. And thirdly watch ASX gold stocks such De Gray Mining ( $De Grey Mining Ltd(DEG.AU$ ) is which 40% owned by institutional fund managers, and is also deemed undervalued with a consensus price target of $1.77 (which implies 33% upside).
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Moomoo Official Market Strategist
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103370157 : In HK, one gold etf was trading at 30% premium
Lions Den 103370157: people should just buy the real thing, this paper gold probably doesn't even exist