The gold price has risen to historic highs, but some market participants still aren’t sure if the move will stick.
Chris Blasi, president of Neptune Global, shared data that he believes validates the yellow metal’s uptick and confirms that it has much further to run. In his view, gold is in the third leg of a secular bull market that began in 2001.
The data that Blasi discussed relates to Neptune Global’s PMC Index. Created in 2008, it tracks gold, silver, platinum and palladium, weighing the four precious metals according to what the company views as a balanced investment portfolio.
‘Here we are in 2024, and for the first time since this index has been available, gold is now outperforming the other metals. What this is telling me is gold is breaking out — the money is moving more to gold,’ Blasi said.
‘The economy is slowing down, probably because the industrial metals are easing off in price, and the interest is more in the properties of money, which is what gold is. If you overlay that with what we see going on in the world geopolitically, macroeconomically — that’s what I believe is supporting (gold) and telling us this is the time to be into gold,’ he added.
He acknowledged that some investors may not want to buy gold now that the price is so high. However, given how much the precious metal could rise in the coming years, it may be better to act now than to wait.
‘That would tell me it’s still a very opportune time to get in, and that gold is probably going to be seeing in the next several years some of the very aggressive price targets that some well-respected analysts have put out there — we’re talking US$3,000, US$5,000, US$10,000 (per ounce) and possibly more,’ Blasi explained.
Watch the interview above for more of his thoughts on gold and its most important price drivers in 2024, from the US Federal Reserve to geopolitics. Blasi also discusses the silver, platinum and palladium markets.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.