In a recent interview with Investing News Network, Lee Goehring, managing partner at Goehring and Rozencwajg, shared his optimistic perspective on the gold market's current trajectory.
Goehring explained that gold has entered a "massive bull market," which he attributes to years of monetary expansion since the global financial crisis. Using valuation methodologies that have proven accurate in the past, he projected gold prices could reach between US$15,000 and US$25,000 per ounce.
The Behavior of Western Investors
Reflecting on the consistency of his approach, Goehring remarked, "It's the same valuation technique I used back in May of 2000," which had correctly signaled a significant rise in gold prices at the time.
The conversation touched on Western investors' changing behavior, with many now returning to gold after years of net selling. Goehring noted that this shift has coincided with declining real interest rates, which historically drive increased gold purchases.
He added, "We've entered a Western investor gold accumulation cycle," and observed that central banks have been aggressively increasing their gold holdings. Goehring then offered further support to the market, saying, "Any period of price weakness should be viewed as a time to become a gold buyer."
Concern For Gold Prices
Despite the positive outlook for gold prices, Goehring expressed concern about the disconnect between gold's rise and the performance of gold stocks.
"Gold stocks are radically undervalued right now," he said, emphasizing that some valuation metrics are comparable to those seen in 1999, a period that preceded significant gains for gold equities.
He noted how the lack of interest in gold stocks, despite increasing profitability, presents a rare opportunity for investors.
Signs of a Monetary Regime Change
Goehring also pointed to an impending "monetary regime change" as a major driver for gold's long-term prospects.
Drawing parallels to historical shifts such as the end of the gold standard in 1971, he explained, "Every time we've had a period of massive monetary and fiscal expansion, it has been followed by a significant change in the monetary regime."
Goehring argued that similar dynamics are unfolding now, with potential catalysts including geopolitical developments and the BRICS nations' efforts to reduce reliance on the U.S. dollar.
While acknowledging the uncertainties around what the exact change might entail, he stated, "It's going to be massively positive for gold and hard assets."
To watch the full interview, visit Investing News Network's YouTube channel here.
| Want to be the first to know about interesting Gold investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
1) James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
2) This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
For additional disclosures, please click here.
Investing News Network Disclosures
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
