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.”