Diego Parrilla, manager of the defensive and gold-heavy Quadriga Igneo fund, strongly believes that the price of gold could climb to $3,000 to $5,000 an ounce with the next three to five years. Parrilla, who predicted the metal’s rise to an all-time high of $2,000 last summer, is unphased by the metal’s tumble to $1,800. He actually told Bloomberg that he feels the drivers for gold have only become stronger. Gold price ticked up Thursday as the U.S. weekly jobs report showed a total of 385,000 unemployed.
Yahoo Finance/Sigrid Forberg
Could gold double in price? This hedge fund says it’s more likely than ever
For thousands of years, the most popular investment was gold: the prettiest metal you could bend, re-form, bury and reuse endlessly.
And even though investors have many more options nowadays, gold still has its champions.
One hedge fund manager, who predicted the metal’s rise to an all-time high of $2,000 per ounce last summer, is confident the price could climb to $3,000 to $5,000 an ounce in the next three to five years.
Here’s his rationale for gambling on gold and the best ways for ordinary investors to follow his lead.
Is buying gold a good investment?
Diego Parrilla, manager of the defensive and gold-heavy Quadriga Igneo fund, is undaunted by the metal’s tumble to $1,800 and widespread expectations that the price will continue to slide.
“I think the drivers for gold strength not only remain but actually have been strengthened,” he told Bloomberg News earlier this week.
Many people rush to gold in tough times. The shiny metal tends to hold up well during stock market crashes and periods of high inflation.
Parrilla believes both could happen in the near future, as people are not appreciating the risks of the massive pandemic stimulus efforts underway, like today’s incredibly low-interest rates. He expects the next decade will see runaway inflation that central banks cannot control.
“Central bank money printing isn’t really solving problems, it’s delaying the problem,” Parrilla says. “Gold will benefit purely from being a physical asset that you cannot print.”
You can continue reading, here.
Kitco News/Anna Golubova
Gold price ticks up as U.S. weekly jobless claims total 385,000 as expected
The initial weekly jobless claims fell by another 14,0000 to 385,000 in the week to Saturday, largely meeting market expectations.
Economists’ consensus called for initial claims to come in at 384,000 following the revised level of 399,000 reported in the previous week.
The four-week moving average for new claims – often viewed as a more reliable measure of the labor market since it flattens week-to-week volatility – decreased to 394,000, from last week’s revised average of 394,250, the U.S. Labor Department said on Thursday.
Read the full story, here.
Has post-pandemic market growth peaked?
Hudson Valley Investment Advisors CEO and CIO Gus Scacco gives his take on the state of the economy.
You can watch the full interview, here.