My Case For Gold Hitting A Record High Above $2,000
(Kitco News) - Before I lay out to you why gold will hit new highs in the coming years, I want to first thank you and all of my loyal Kitco readers who have followed my daily reports for so many years. I have a lot of irons in the fire, but writing for Kitco, and you, is one of my very favorite daily chores. I hope you continue to follow me in the coming years.
If you know me well by having read my Kitco daily reports for years, you know I'm pretty straight-forward and not much for hyperbole or bombastic proclamations. While the headline of this special report may sound like I'm really going out on a limb, just read on and let me explain.
I am going to show you three charts that lay out my case for gold pushing to new highs above $2,000 an ounce. These charts will corroborate my notion that it's not a stretch to suggest gold will hit a new all-time high in the coming years, or possibly sooner.
Goldman Sachs Commodity Index (GSCI) at a multi-year high
See on the monthly chart for the GSCI that prices are at a more-than-four-year high and have been trending higher for two years, suggesting more upside for the raw commodity sector in the coming months, and likely much longer. Commodity markets are highly cyclical. The raw commodity sector is embarking upon what I believe will be a years-long up cycle that will produce new record highs in several, or even many, raw commodity markets.
Lumber Futures Hit All-Time High This Week
The monthly continuation chart for nearby lumber futures shows prices this week have screamed to a record high. And, there are no early chart clues to suggest this important construction materialâ€™s price will top out anytime soon. Lumber is likely the leader in a resurgent construction sector that will, in the not-too-distant future, see other construction materials prices hit new highs. Worldwide consumer and producer price inflation levels are starting to creep up, after a long period of stagnation. If the pace of price inflation heats up a bit more, the pace of raw commodity price increases will also increase accordingly.
Gold prices Are Embarking Upon Longer-Term Price Uptrend
The monthly continuation chart for nearby Comex gold futures shows prices are in a fledgling uptrend. To extrapolate from this chart, if the present trend trajectory continues, gold will hit a new record high sometime in 2027, and will hit $2,000 in the year 2028. However, itâ€™s my bias that goldâ€™s present price uptrend trajectory will accelerate in the next couple yearsâ€”just like it did during the last big up-trending move that culminated with the present record high of $1,908.60, scored in 2011. If such is indeed the case, gold will hit a new high significantly sooner than nine years out.