2020 could see gold surpassing the strong performance we witnessed in 2019, according to one industry expert. Euro Pacific Capital CEO, Eric Schiffer says that contrary to some opinion, the threat of recession is still on the table. While it may not be imminent, we are likely to run into a recession, which all indicators suggest will be more severe than the 2007-09 depression, he says, and this would favour a stronger gold price.
He explained, “The fact that the curve has inverted I don’t think means that the recession has been avoided. Maybe it’s been delayed a little bit, and typically when you have recessions, the yield curves will normalize prior to the recession. The invert initially because the Fed doesn’t see the recession coming and then by the time it starts cutting rates, it’s too late. They did cut rates and that unwound the yield curve, but I believe we are headed for recession. I think the recession is going to be much more severe than the period we now refer to as the Great Recession.
“I think a big decline in the US dollar is coming and in that environment, that’s when you’re going to see the price of gold really take off. I think the price of gold is going up next year, so I want to own it… I do believe that once we really start to take off, gold can go from $1,500 to $2,000 very quickly.”