Kitco’s Peter Hug, as director of global trading is paid to care about the price of gold, not that he doesn’t anyway.
At the beginning of this year Peter was bullish on gold when it was in the mid $1500’s. After all, the economy was vibrant, stocks were trading at near all time highs and the outlook while positive, was not overwhelmingly so. Then came Covid. Peter warned investors that gold/silver would drop initially and then head higher. Stimulus lead to stock price recovery and stock market reflation. Peter then targeted $1750, which gold hit and then pulled back. The equity markets may come under renewed downward pressure, which again may be a negative for gold. Peter is now calling for $1911 by year end. Remember, his call for last year was $1550, and he was very close.
As for the next generation of investors, millennials are more interested in digital gold products than physical gold. As the boomers drop, millennials will be dumping their inherited metals hoards. Or perhaps they may wise up.
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