How High Can Gold Prices Go? Experts Weigh In

gold silver 600X300Gold prices have been locked into a year-long bullish pattern, despite hitting multi-year lows in January. The question on everyone’s mind is: how much further can they rise? Let’s take a look at several expert predictions.

Outlooks All Over the Map

Some gold watchers are bearish on the metal, others are bullish. Still others are ultra bullish, while some are insanely bullish. With gold currently sitting around $1,342 per ounce, here’s a rundown of some recent predictions:

  • Goldman Sachs analyst Andrew Quail – $1,250/oz – Goldman has been bearish on gold for quite some time, despite its recent run-up. Still, it keeps raising its price targets, which are notably well below gold’s current price. If gold keeps rising, expect Goldman to live up to its moniker and turn bullish.
  • UBS analyst Joni Teeves – $1,400/oz – Teeves noted the Brexit could probably continue to put a floor under gold prices, with near-term spikes at $1,400, but that gold’s average price for the year will be around $1,340. A middle-of-the-road call, to say the least.
  • CLSA analyst Christopher Wood – $4,200/oz – Wood, in a recent note to clients, said that central bankers are essentially destroying the world’s monetary system and that the entire house of cards could collapse. Such an event, Wood notes, would push gold into the stratosphere. Color us skeptical.
  • Gold-Eagle.com analyst AG Thorson – $10,000/oz – You wouldn’t expect someone working for a gold-centric site to be anything but bullish on gold, would you? While not coming out and specifically putting a $10k price target on the meta, Thorson did title his recent article “Gold Prices: The Road To $10,000?. This is a classic technique of making a prediction without actually making one, so if it doesn’t come true, you can say “I didn’t actually predict that.”

How to Profit from Gold’s Rise Using ETFs

There are several ETFs that investors can use to profit if they think the price of gold is going to go up. Some are relatively straightforward, while others are much riskier. Here are two of the most popular options:

  • SPDR Gold Trust (ETF) (NYSE:GLD) – The granddaddy of them all, GLD for a brief period in 2011 held the most assets under management for any ETF in the world — right before gold collapsed. Still hands down the most popular way to invest in gold without actually buying physical gold, GLD is a go-to way to gain exposure to gold while still maintaining the ability to get out immediately. GLD shares, which have gained around 26% year-to-date, were up $0.95 (+0.75%), to $128.10 in afternoon trading Wednesday.
  • Credit Suisse AG – VelocityShares 3x Long Gold ETN (NASDAQ:UGLD) – Are you feeling lucky? Are you willing to risk enormous losses for the prospect of equally enormous gains? Then UGLD, a triple (3x) leveraged ETF that tracks the price of gold, might be for you. Just remember, if gold prices correct, this security will fall three times faster than GLD. UGLD is up a mind-bending 90% in 2016 and added $0.35 (+2.59%) to $14.05 per share in afternoon trading Wednesday.
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