Can Gold Surpass the $3,000 Price Mark?

Market uncertainty is still reigning in the capital markets as a number of economies have yet to still operate at full capacity thanks to the Covid-19 pandemic. As such, precious metals like gold could continue to soar to higher heights with gold surpassing the $3,000 price level.
“Since 1968, when gold was $35 per ounce, the drivers of gold bull markets have fallen into two categories: inflationary and deflationary,” said Jo Foster, Portfolio Manager for VanEck’s Gold funds, in an email. “We don’t see inflation spiking anytime soon, so we believe this to be a deflationary cycle. Both recent deflationary gold bull markets suggest that a price of over $3000 per ounce is reasonable. In fact, if one measures the start of this bull market from the 2015 lows, then it appears similar to the 2001-2008 bull market when gold rose over 200%.”
The Trust’s secondary objective is for the shares to reflect the performance of the price of gold less the expenses of the Trust’s operations. Each share represents a fractional undivided beneficial interest in the Trust’s net assets, and the Trust’s assets consist principally of gold held on the Trust’s behalf in financial institutions for safekeeping.