If you read our mid-week update on Wednesday, you may have seen that Blue Line Futures’ chief market strategist, Phillip Streible urged investors to ‘buy the dip’ in order to fully capitalise on an expected surge in gold prices towards the end of this year and into 2021.
Yesterday, E.B. Tucker, an author who has just released a book on economic theory called ‘Why Gold? Why Now?: The War Against Your Wealth and How to Win It’ seconded this advice, with the expectation that gold will reach its all-time high of $1900 in a matter of months and certainly before the end of 2020.
Tucker bases his forecast on the Modern Monetary Economic Theory, which says that central banks will increase money supply into the economy without triggering high inflation. The economic expert says this is just around the corner and will lead to negative interest rates which favour booming gold prices. He says that gold will come into its own as a safe haven asset at that point, saying that smart investors will shore up now.
Using the analogy of a storm, he describes how demand will surge when negative interest is a reality, saying “People typically don’t prepare. Nobody wants to buy hurricane insurance until after the storm, and after the storm, then everyone wants to buy hurricane insurance and it’s quite expensive after the storm.”
