Gold Prices Could Double in Next 3-5 Years, Says Fund Manager

The comments below are an edited and abridged synopsis of an article by Gold Eagle

Gold is primed to surge to fresh highs as the risks around central banks unwinding massive stimulus are under-appreciated by investors, according to a fund manager who forecast the metal’s record high last year.

Gold Prices Could Double in Next 3-5 Years, Says Fund Manager | BullionBuzz | Nick's Top Six
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Diego Parrilla, who manages the $250 million Quadriga Igneo fund, said there isn’t widespread awareness of the long-term damage that’s been caused by ultra-loose monetary and fiscal policies. Artificially low interest rates have created asset bubbles that are too big to burst, which will make it difficult for central banks to normalize without risking their collapse, he said.

“The tapering process will be glacial in terms of speed,” said Parrilla, who correctly predicted in 2016 that gold would climb to a record within five years. “I think the drivers for gold strength not only remain but actually have been strengthened.”

Parrilla said he’s sticking to his view that gold could rise to $3,000 to $5,000 an ounce in the next three to five years. The safe-haven asset has traded at around $1,800 over the last few weeks.

Gold is disconnected from some of the moves in Treasuries and real yields, but could get a boost from a major risk-off event that would make it clear that central banks aren’t as in control as people think, said Parrilla, who has 25 years’ experience in trading precious metals.

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