Why Gold Could Rise for Next 10 Years
London (April 20) Investment guru Bert Dohmen predicts that gold will continue to soar in price for the next decade.
“Gold and silver are not hedges against a crisis. In fact, a crisis may cause all salable assets, including precious metals, to be sold in order to get cash,” Dohmen wrote for Forbes.com.
“Gold investors must realize this to protect themselves in times of crisis. Cash in the form of a stable currency is the most desirable asset to hold during such times,” wrote the president of Dohmen Capital Research Insist, Inc.
“Gold has been widely ignored since 2011 as an asset class for institutional portfolios. However, that should change as most other asset classes deteriorate and become unattractive for a while,” wrote Dohmen, who has been providing market timing for traders and investors world-wide for over 40 years.
“What is bullish for gold? My opinion is that gold is primarily an inflation hedge, actual inflation or the perception of future inflation, as currencies are debased by governments that can’t pay their bills,” he said.
“With long-term bullish sentiment on the precious metals so low until late 2018, and the gold price in terms of many foreign currencies already near or at new record highs, it’s only a matter of time before the U.S. dollar price of gold shoots upward,” he wrote.
Dohmen said “our forecast in 1981 said that according to our very long-term cycle study, that bear market would be followed by a 30-year rise in gold. We even said we had no idea what would cause it, but the cycles said it should happen,” he wrote.
“If the forecast I made in 1981 still holds true, gold could have a continued secular bull market until 2030. That means the gold bull market could have about 11 more years to go. Historically, the final phase of a bull market is the most spectacular.”
Dohmen isn't the only respected economic voice touting the benefits of gold.
Newsmax Finance Insider Jared Dillain recently suggested that all investors should have gold in their portfolio in any way possible.
"Add gold to any portfolio (including gold mining equities) and the risk characteristics improve," he recently wrote.
"There’s been a big shift in the Fed’s thinking in the last couple of months. Big… as in, really big… as in, dramatic. At least partially because of the political pressure," he wrote.
"Off in the peanut gallery, you have this whole discussion on Modern Monetary Theory and how deficits don’t matter. Gold likes those kinds of discussions. Plus, central banks are buying it for the first time in a while," he wrote.
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