Mark O’Byrne, research director at GoldCore.com told IG TV that markets are likely in a long-term bull market for gold and silver and a bear market for equities as the pandemic weighs on the global economy and creates a recession or an economic depression.
Gold has made significant gains this year, with investors flocking to invest in the safe-haven asset amid the Covid-19 pandemic, which has wreaked havoc on global equities.
Gold is outperforming other assets and has delivered a 12% dollar return in 2020 year to date. Gold has seen even greater returns in other currencies and is 15% higher in euros and 19% higher in pounds year to date.
According to Mark O’Byrne, research director at Goldcore, investors can expect a long-term bull market for gold and silver and a bear market for equities as the coronavirus continues to weigh on the global economy.
When asked if gold prices could push above the $1700 mark on a sustainable basis, O’Byrne said that it is ‘a question of when, rather than if’, with the economic fallout of Covid-19 crisis so severe it has seen governments printing money ‘on scale never seen before in the history of mankind’ and currencies will fall in value against real assets like gold and silver.
Silver is particularly undervalued and silver rising back to $50/oz is a very conservative estimate indeed and we will get back to those levels again in the coming years.
Watch interview here
NEWS and COMMENTARY
Gold slips as stronger dollar outweighs coronavirus worries
ECB urges measures worth 1.5 trln Euros to tackle virus crisis in euro zone
EU ministers fail to agree virus economic rescue in all-night talks
Japan’s economy has been dealt the ‘final blow’ by the coronavirus pandemic, says analyst
‘Cash Is Trash,’ Own Gold as Printing Presses Roll – Dalio on Reddit
Should we invest in gold as the coronavirus spreads? GoldCore via Sunday Times
Editors Note: The shortage of gold bullion coins and bars continues and may deepen as prices move higher. It is not just smaller one ounce bullion coins and bars that are difficult to source but also larger gold and silver bars including gold kilo bars (32.15 ozs) worth and 1,000 oz silver bars. Due to our direct relationships with government mints and refineries we continue to source large bars and some gold coins and bars in 1 oz formats. Silver coins in 1 oz format are not available from the government mints yet.
GOLD PRICES (USD, GBP & EUR – AM/ PM LBMA Fix)
07-Apr-20 1652.20 1649.25, 1344.23 1333.75 & 1519.53 1511.21
06-Apr-20 1636.60 1648.30, 1330.72 1341.06 & 1515.49 1526.66
03-Apr-20 1609.75 1613.10, 1310.66 1315.97 & 1490.47 1495.34
02-Apr-20 1588.05 1616.80, 1277.59 1307.02 & 1452.27 1489.72
01-Apr-20 1594.25 1576.55, 1288.95 1270.23 & 1457.94 1442.86
31-Mar-20 1604.65 1608.95, 1299.61 1296.81 & 1461.52 1468.81
30-Mar-20 1624.35 1618.30, 1312.56 1305.97 & 1466.88 1466.02
27-Mar-20 1621.20 1617.30, 1325.33 1316.16 & 1473.18 1469.48
26-Mar-20 1620.10 1634.80, 1361.37 1358.19 & 1480.12 1487.01
25-Mar-20 1620.95 1605.45, 1357.22 1371.38 & 1494.84 1486.17
24-Mar-20 1599.50 1605.75, 1362.61 1371.47 & 1472.98 1489.49