Metzler’s staggering gold price prediction for 2023
Prominent German credit analyst, Marco Metzler has a track-record of getting big calls right and he just made a huge call on the gold price in 2023.
Metzler, who holds an extremely bearish outlook on the global economy, believes economic woes will lead to an enormous increase in the popularity of the precious metal.
“With the ongoing global financial meltdown, I believe that the price of Gold will skyrocket in 2023 this is because more people are informing themselves about how they can safely store their wealth for a long period of time without inflation having control over their buying power,” he said.
And he believes it will ultimately be a meme stock-style short squeeze that will send the gold price soaring.
So, how high does Metzler think the gold price will go in 2023?
He notes a recent gold price prediction made by Singapore-based asset manager, Swiss Asia Capital. In an interview with CNBC, Swiss Asia’s managing director, Juerg Kiener tipped the gold price could hit $4000 an ounce in 2023.
Metzler thinks that’s in no way an extreme prediction.
“This (gold price to $4000 in 2023) should not be one of those risky predictions because as we all know, as markets get vulnerable and if there are a lot of volatility investors will fly to safety, either into bonds or into gold,” he explains.
“Now, most investors will not go for bonds, which is a valid argument because bonds have no real value behind them, they are just promises, like the fiat currency system we now have. So what this means is, we can probably expect strong demand for gold in the coming year.”
China a major factor for the gold price in 2023
Dr Metzler says another major force underpinning a gold price short squeeze in 2023 will be China.
As has been noted multiple times this year by prominent financial markets commentator Francis Hunt, price moves in global gold markets have led some to believe China has been hoarding an enormous amount of gold in recent years.
“This is mostly pure speculation but I somehow believe that China is preparing for the global financial meltdown,” said Metzler.
“I must say that it is quite suspicious when a country like China buys in large amounts, and they are paying a premium for their imported gold. Only the future will tell, why China needs so much gold.
“As the coming year is probably going to lead us to a recession demand will spike and reach a new high. Countries like China are contributing to this hype or trend, increasing news about buying Gold, but it also worries some investors why China is buying in bulk.
“This further drives up the price and, thus, the demand.”