One of the main figures who has been closely monitoring the trajectory of gold in the financial market is Brett Heath, the CEO of Metalla Royalty & Streaming. He is a trusted expert whose interpretations and predictions have been followed by many investors worldwide. A decade-long observer and a seasoned player in the financial market, Heath has noted some crucial indicators for a powerful bull rally which may push gold’s price to a staggering US$3,000 by 2024.
To understand Heath’s prediction, insight into the current scenario of gold and other precious metals in the global market is essential. A combination of two significant financial phenomena, zero or near-zero interest rates and high levels of inflation, creates the perfect setup for gold to shine. It is observed that in such situations, gold outperforms other asset classes and rises in value.
With the impact of the global Covid-19 pandemic, governments worldwide have resorted to massive stimulus packages to endure the economic crisis. This extravagant money-printing process, however, has its consequences, leading to a devaluation of currencies and triggering inflation. The decrease in purchasing power of currencies makes gold a preferred hedge for investors as it retains its value, rendering it an attractive investment option.
Furthermore, Brett Heath predicts near-zero interest rates to continue for some time. Lower interest rates decrease the opportunity cost of holding non-yielding bullion and dampen the dollar, making gold cheaper for investors holding other currencies. This further bolsters gold’s appeal and demonstrates how meticulous Heath’s predictions are.
Technology has also played a significant part in this looming gold bull cycle. Applications of gold in various technological advancements have specifically accelerated its demand. Essentially, the higher the demand, the steeper the price, as is the rule of economics. Heath has pointed out that the advent of electric vehicles has driven up demand, given that gold is a crucial component in those vehicles’ manufacturing process.
The gold mining scenario should also be brought into perspective to understand the prices’ possible surge. Gold mining activities have been slower, leading to a modest increment in supply over the years while the demand continually rises. This disparity causes an upward pressure on the prices of gold. Moreover, the industry itself has been witnessing lesser major discoveries in the recent past.
Altogether, Brett Heath’s prediction of gold surging to US$3000 by 2024 seems plausible. Low interest rates leading to a weak dollar, coupled with increased inflation rates and a burgeoning gold demand in various industries, plays perfectly into the gold bullish narrative. While these forecasts require investors to stay vigilant about global economic trends, they undoubtedly showcase gold’s strength as an essential asset in any robust investment portfolio.
