Some experts are saying we could see $2,000 gold this year (per ounce). Those who see a robust year ahead for gold agree on economic reasons the outlook is optimistic. The biggest reasons are global economic anemia and dollar-debasing central bank “cures” for that anemia. There is less of a consensus, however, on how much noneconomic factors will assist in gold’s anticipated rise over the near term. For example, the greatly deteriorated relationship between Iran and the U.S. may be a factor. A recent increase in those tensions sparked a 6% gold price jump in just a few days. However, as tensions moderated, so too did the price of gold. Some suggest this proves gold buyers should temper their belief that political/geopolitical upheaval benefits gold prices.
Others believe political tension is indeed a reliable indicator of gold’s price movement. The chief investment officer (CIO) of the world’s largest hedge fund Bridgewater Associates is one. He believes noneconomic influences will prove just as important to rising gold as economic influences.
Bridgewater CIO: “Boiling Conflict” Could Spark New Gold Record in 2020
With 160 billion dollars under management, Bridgewater Associates has a lot to lose. So, when its CIO Greg Jensen speaks about threats to the economy and savings portfolios, it’s probably worth listening. CNBC.com detailed Jensen’s recent conversation about this with the Financial Times. He insisted volatile political and geopolitical conditions are compelling enough reasons for owning gold through the foreseeable future.
Jensen is convinced the appeal of safe-haven assets will go up. His reasons include rising social tensions from income inequality and political tensions with China and Iran.
“There is so much boiling conflict,” Jensen said. “People should be prepared for a much wider range of potentially more volatile set of circumstances than we are mostly accustomed to.”
Jensen’s comments come at the same time as a stunning report by UK-based socio-economic/ political analysis firm Verisk Maplecroft. According to their research, fully 40% of the world’s nations will see civil unrest in 2020. That astonishing number represents a marked increase in nations Maplecroft says experienced social disorder last year (25%).
As remarkable as that increase is, Maplecroft analysts insist the surge in civil unrest is not a “flash in the pan.” They believe conditions will only get worse from here. “The next 12 months are likely to yield more of the same,” says the report. “Companies and investors will have to learn to adapt and live with this new normal.”
Gold’s Projected Banner Year Won’t Help Non-Gold-Owners
Analysts disagree about the role political and geopolitical tension will play in supporting gold’s price in 2020. As noted in last week’s blog article, some gold bulls don’t believe social/political influences will significantly affect the metal’s price. They think gold’s fortunes rest almost entirely with global economic weakness and super-accommodative monetary policy. Others, such as Bridgewater’s CIO, believe political and geopolitical discord will grow substantially this year. They say it will spark gold past its record high and onward to the near-mythic mark of 2,000 dollars per ounce.
The overarching point you shouldn’t miss: for an array of reasons, credible recommendations for gold are mounting. Have you made the move to gold? If not…why not?
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The world’s largest hedge fund has joined the chorus of those projecting a potentially record-breaking year for gold. Your portfolio isn’t worth 160 billion dollars. But the savings you do have is every bit as important to you and your family. There’s simply no good reason to miss out on the robust opportunities of precious metals right now. Let the retirement protection specialists at Augusta help you take advantage of them – and potentially $2,000 gold – before it’s too late. We look forward to hearing from you.