According to Leigh Goehring, managing partner of Goehring & Rozencwajg Associates, a new crisis will be added to the anomalies and risks in 2022. Goehring talked about record highs for gold forecast amid this crisis. Here are the details…
Goehring: A crisis is coming that will surprise everyone
Goehring , “The big crisis that will surprise everyone in the next six months is here, in North America with US natural gas prices will be,” he said. “There may be a ‘black swan’ event in North America that will suddenly leave the US gas market exposed. If that happens, US gas prices could soar. It can triple or even quadruple,” he said. Goehring & Rozencwajg Associates managing partner said it was “stupid” for investors to be indifferent to this risk.
Gas price hikes could hit the US market as the Federal Reserve desperately tries to control inflation with outrageous rate hikes. According to the expert, this will force the Fed to raise rates much higher. “There is tremendous momentum in US economic growth and it can hold up much better than people think,” Goehring said. For Goehring, the concern lies not in how the economy survives, but in what will happen as the Fed pushes rates above 2-3 percent.
Goehring’s gold forecast points to five digits
Goehring is very optimistic about gold in the long run and expects the bull market to continue at around 15,000 ounces per ounce by the end of this decade. estimated to reach $. “We have a huge bull market ahead of us,” Goehring said. Last month, we started to increase our gold investment. We are getting closer every day to this big boom in the gold field,” he said.
However, “in the short term, gold could return to $1,600 per ounce, which is a great entry point,” Goehring said. Stating that the reason for the pullback in May was the interest rate hikes by the FED, Goehring said, “When the Fed starts to increase rates, it puts downward pressure on gold. [But] I’m bullish on this market,” he said. He underlined that the interest of western investors, especially towards gold and silver physical ETFs, has returned. Because gold is cheaper to trade than oil, Goehring is confident we are approaching an upside solution.
