Scott Minerd, chief information officer of investment giant Guggenheim (Guggenheim), said on TuesdayPrecious metals will begin to gain momentum as chaotic price swings in the cryptocurrency market prompt investors to re-embrace gold and silver, with an eventual gold price target of $5000-$10, 000 an ounce.
He also expectsThe u.s. stock market is on the verge of a correction of about 10%, but he thinks the s & p 500 will recover in the longer term.Minerd said in an interview with CNBC:
"as money withdraws from cryptocurrencies and people are still looking for inflation hedges, gold and silver will be better options."
Minerd said. This will take some time because of the sheer size of the gold market, but the precious metal will enter an "exponential phase".
The final price target for gold is between $5000 and $10000 an ounce, he added. He said:
"this will eventually become a reality. Silver has always lagged behind, it is the gold of the poor, it is the precious metal with the biggest percentage change, and it is the highly volatile version of gold. "
Minerd stressed that now is a good time to allocate a large number of precious metals and gold mines in the form of GDX. "it makes a lot of sense to do so now."
When it comes to cryptocurrencies, Minerd said that even if he thinks Bitcoin and Ethernet Square will stand the test of time, it is likely that other new cryptocurrencies will dominate the field of digital assets. He said:
"AOL is the winner. Yahoo is the winner. And then GoogleAnd other players showed up. We will find that a new cryptocurrency will be around for a long time to overcome some of the problems we currently face, such as mining costs and all carbon production. It will become an advanced cryptocurrency and will become the dominant cryptocurrency. "
Minerd also expects a 10 per cent correction for US stocks, but points out that the S & P 500 will eventually rebound. He said:
"I think we are going to have a correction. Over the next six months, I think we're going to see a pullback of about 10%. But in the end, I think the S & P will reach 5000, maybe even higher. "