Citigroup: Gold Could Reach $1,600 This YearPaul-Martin Foss
With gold’s recent gain in value, predictions made at the beginning of the year about its overall gains have been left in the dust. Many mainstream analysts thought $1,350 per ounce was a reasonable price target for the end of the year, obviously laboring under the erroneous assumption that stock markets would resume their bull run. Even many gold analysts thought $1,400 or $1,450 would mark gold’s high point. But now that gold has broken through $1,400, those analysts have had to update their predictions.
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Some analysts at Citigroup are now calling for $1,600 gold within the year. That isn’t a far-fetched bet either. Even the more conservative analysts at Goldman Sachs are calling for gold to hit $1,475 by the end of the year, versus Citi’s call for $1,500.
With President Trump continuing to place tariffs on more and more countries, international trade is slowing at a rate that we haven’t seen since the 1930s. American farmers are dealing with the double whammy of reduced sales to China and bad weather that has significantly reduced their ability to plant crops this season. And the housing market is showing more and more signs of a slowdown. All the factors are there for a massive recession and a huge drop in stock markets.
That’s why it’s more important than ever for investors to diversify their portfolios and protect their assets before the next crash. Only through proper diversification, such as by investing in gold, can investors ensure that their assets won’t be ravaged by the coming stock market downturn.
Relying on the paper assets favored by Wall Street is a recipe for losing money and seeing your dreams of retirement evaporating into thin air. Do yourself a favor and look into investing in gold today to ensure that your financial health remains strong no matter what the future holds.