Leigh Goehring, managing partner at Goehring & Rozencwajg, shared his outlook for gold, outlining calculations that show the yellow metal potentially rising to the US$15,000 to US$25,000 per ounce range in this cycle.
"We're a believer that we have just entered into a massive bull market in gold, and the underlying fundamental reasons are the fact that over the last 15 years, ever since the global financial crisis, we've printed so much money," he said.
Goehring said that in a May 2000 interview with Forbes Magazine, he predicted the yellow metal could rise as high as US$2,500 — a call that was considered "outrageous" given gold's price of US$250 at the time.
However, over the next 10 years, gold ran to US$1,900 before pulling back.
"Even thought US$2,500, my target price, wasn't reached, it got awfully darn close," he told the Investing News Network. "So that shows you that there is some validity to the way we looked at gold prices relative to money."
It's using that same methodology that he gets a US$15,000 to US$25,000 gold price. "Everyone says, 'Oh, that's crazy, how can that be?' But it's the same valuation technique that I used back in May 2000," Goehring explained.
With that in mind, he believes gold price dips should be bought, and said gold stocks are "radically undervalued."
Goehring also shared his thoughts on what's next for silver and uranium, and touched on his contrarian outlook for copper, suggesting that demand expectations from the renewable energy sector are overblown.
Watch the interview above for more on those topics and others.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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