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 inthe coming years, I want to first thank you and all of my loyal Kitco readerswho have followed my daily reports for so many years. I have a lot of irons inthe fire, but writing for Kitco, and you, is one of my very favorite dailychores. I hope you continue to follow me in the coming years.
If you know me well by having read my Kitco daily reportsfor years, you know I'm pretty straight-forward and not much for hyperbole orbombastic proclamations. While the headline of this special report may soundlike 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 casefor gold pushing to new highs above $2,000 an ounce. These charts willcorroborate my notion that it's not a stretch to suggest gold will hit a newall-time high in the coming years, or possibly sooner.
Goldman SachsCommodity Index (GSCI) at a multi-year high
See on the monthly chart for the GSCI that prices are ata 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, andlikely much longer. Commodity markets are highly cyclical. The raw commoditysector is embarking upon what I believe will be a years-long up cycle that willproduce new record highs in several, or even many, raw commodity markets.
Lumber Futures HitAll-Time High This Week
The monthly continuation chart for nearby lumber futuresshows prices this week have screamed to a record high. And, there are no earlychart clues to suggest this important construction material's price will topout anytime soon. Lumber is likely the leader in a resurgent constructionsector that will, in the not-too-distant future, see other constructionmaterials prices hit new highs. Worldwide consumer and producer price inflationlevels are starting to creep up, after a long period of stagnation. If the paceof price inflation heats up a bit more, the pace of raw commodity priceincreases will also increase accordingly.
Gold prices AreEmbarking Upon Longer-Term Price Uptrend
The monthly continuation chart for nearby Comex goldfutures shows prices are in a fledgling uptrend. To extrapolate from thischart, if the present trend trajectory continues, gold will hit a new recordhigh sometime in 2027, and will hit $2,000 in the year 2028. However, it's mybias that gold's present price uptrend trajectory will accelerate in the nextcouple years-just like it did during the last big up-trending move thatculminated with the present record high of $1,908.60, scored in 2011. If suchis indeed the case, gold will hit a new high significantly sooner than nineyears out.
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jwyckoff@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.