Gold is up $31 to $1976 today
Analysts at Credit Suisse see a "perfect storm for gold" that will lead to $2500 per ounce next year.
"We raise our 2021 gold price forecast to US$2,500/oz (US$1,800/oz previously) and 2022 to US$2,200/oz (US$1,650/oz previously) ... We stay Overweight gold because: TIPS yields go to -2.5% (our previous view had been 2%): Gold is very sensitive to the TIPS yield. The increased deterioration in the US fiscal position (with the IMF forecasting US government debt to GDP to reach 146% and a budget deficit of 12.4% by end 21) requires a 10 year real bond yield of minus 2.5% to both stabilize government debt to GDP ratio and allow unemployment to fall to low levels"
I was struck on the weekend by the pushback regarding Berkshire Hathaway's investment into Barrick Gold. The skepticism and hole-poking into the move suggests to me that we're far from any kind of bubble or overcrowding in gold.
