Gold Price Target is $3,000 and Silver is $75 per Ounce

Gold Price Target is…

The rally that followed the 2008 financial crisis generated returns of 132% for gold in under three years. The gold price more than doubled from the low of $681 in October of 2008 to a high around $1,577 in April of 2011.

– Gold Price Target is…

So, while the 20% move higher toward $1,300 has been exciting, gold would still need to climb to somewhere around $3,000 per ounce ($1,050 bottom x 3) to match the gains that gold experienced after bouncing from its prior bottoms.

Silver is holding around the $17 level, up 23% so far in 2016. The rally that followed the 2001 low generated returns of around 433% for silver. It advanced roughly 5.3X from $4 in March of 2001 to over $21 in March of 2008!

24hGold – Gold Price Target is…

The rally that followed the 2008 financial crisis generated returns of roughly 500% for silver in under three years! The silver price went up 6X from the low of $8.40 in October of 2008 to a high of nearly $50 in April of 2011. Could we see another run of this magnitude in the years ahead?

– Gold Price Target is…

If you thought the $3,000 price target for gold was exciting, consider the following. If the current bull move in silver matches these previous uplegs, silver would need to climb towards $75 per ounce ($13.60 bottom x 5.5).

Of course, there are no guarantees that the current bull move from multi-year lows will match those of the past. But it helps to put some context around the current move and the upside potential ahead.

Investors kicking themselves for not buying near the lows have certainly not missed the train. We are only in the early innings of this ball game. Investors might want to consider edging into new positions now and getting some skin the game. They can then add via buying in tranches over the next few months and lower their average cost if prices do drop.

I estimate that gold has upside potential of around 120% from current levels and downside risk of only around 30%. I project silver’s upside potential at around 440%, with downside risk of 40%. The risk/reward set up is extremely favorable to the long side.

Owning quality mining stocks increases your leverage and potential returns. So far in 2016, mining stocks have been offering leverage of around 4X the gains in the underlying metals. Many of the mining stocks that we track are up 100% to 200% in 2016 alone! Of course, it is very important to do your homework and pick only best-in-breed mining companies with management that you can trust.

24h Gold
April 26, 2016