Precious metals investors should not be paying much attention to the short-term price action in gold and silver. Instead, Andrew Hecht, founder of the weekly Hecht Commodity Report, said that unprecedented monetary and fiscal stimulus will ultimately drive gold prices to record highs in the long-term.
In an interview with Kitco News, Hecht said that he continues to see similarities between the price action in gold during the 2008 financial crisis and current market conditions as the global economy has been devastated by the COVID-19 pandemic.
"In 2008 the U.S. Federal Reserve and all the central banks around the world put lots of stimulus into the system, and it led to an overall rally in commodities. Gold and silver particularly did well," he said. "I'm not going to ever fight the central banks of the world."
Kitco News is the world’s #1 source of metals market information. Our videos feature interviews with prominent industry figures to bring you market-affecting insights, with the goal of helping people make informed investment decisions.
Subscribe to our channel to stay up to date on the latest insights moving the metals markets.
For more breaking news, visit http://www.kitco.com/