Bloomberg Intelligence has tipped gold for as much as a 50% increase in what is a huge vote of confidence for the long term appeal of the precious metal. Senior commodity strategist, Mike McGlone says that gold today is in a similar position to the very early days of its 2001 bull run, and as such, he indicates that gold will increase substantially in value.

He said, “I view gold similarly to 2001 when the gold bull market got started. The metal is currently resuming the bull market that started 20 years ago. During the next presidential administration, I don’t see why it should not increase another 50% or probably much more.”

McGlone expects that we won’t have to wait for the full presidential term to see gold making major gains, with the yellow metal expected to start ascending almost as soon as the next president takes office. He said, “I think it will be a Democratic sweep, and that should be good for gold. We should get a decent fiscal stimulus, and there is a good chance that the Federal Reserve will buy most of that fiscal stimulus, which means additional QE. And both of those are extremely good for gold and potentially bad for the dollar.”

The Bloomberg strategist also suggested that now is a great time to buy,  citing factors that have supported stocks as being temporary and unsustainable, leaving the way clear for gold to resume the strong upward trajectory we have seen throughout the course of this year. He explained, “Election could be a catalyst for a weaker dollar because the more Democratic we get, the more likely we are going to see capital gains taxes, increased regulation, and things that are reversing what supported the stock market recently.

“We have a lot of indications that there will be problems with the stock market. Typically when you raise taxes in a recession, that is not a good combination for the economy and the stock market … Gold is in a more enduring bull market than stocks at the moment.”

If you were wondering whether or not now is the moment to buy, consider these final remarks from McGlone: “Gold is technically and fundamentally still very bullish. Top fundamentals are rising debt-to-GDP on a global basis, rising QE on a global basis, the potential peak in the U.S. dollar, and bottoming of stock market volatility. I don’t see what could keep gold down for a sustained amount of time.”

Buy now.

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