When a large corporation like Wells Fargo publicly announces its bullish outlook, especially the potential of gold prices rising, it’s something worth noting.
While owning gold is by no means new, in fact, it has been around much longer than any currency we are familiar with today, the head of real asset strategy at Wells Fargo reinforces what we’ve known to be true all this time- “Gold kind of embodies everything.”
To be clear, it’s not like Wells Fargo is predicting, out of nowhere for no reason, that gold will perform exceptionally well in 2021.
After all, gold did see some 20%+ increase and eventually broke its all-time high price in 2020 when nearly every other market was red.
Although many economists believe that 2021 will be a year of rebuilding, there are many reasons why gold is said to continue its strong performance next year.
In a recent interview, John LaForge, head of real asset strategy at Wells Fargo, made this comment regarding precious metals like gold- “There’s still a lot of money printing going on, and that is good for gold and silver” adding that, “We think negative real rates and money supply will help them all, but there are also the industrial uses for the metals.”
The bank is also highly interested in silver and platinum but prefers gold since it continues to be the sector’s patriarch and has lower volatility. LaForge states, “For 2021, gold is probably our go-to, it’s our favorite.”
Low-interest rates, loose monetary policy, a weak dollar, we have more than one reason to believe that gold is not ‘probably’ a favorite asset, it most definitely is.
Wells Fargo expects gold prices to push to $2,200 by next year.
Aside from the central bank driving up gold’s demand through the continuous printing of new money, we also have the experience of early 2020 when the stock market saw losses of 30% and above in some cases. Sadly, 401(k)’s saw similar losses.
Another large bank, Bank of America is calling for gold to see prices as high as $3,000 in 2021, so the question remains.
When’s the best time to buy gold?
Alberg Cheng, CEO of Singapore Bullion Market Association told CNBC earlier this year the question isn’t “when” but how much? According to Cheng, every investor should have some gold in their portfolio. He believes that number should be as high as 15%.
Is your portfolio properly diversified for protection and stability? Call American Hartford Gold at 800-462-0071 to learn how precious metals can help protect your wealth against upcoming market volatility.