(Kitco News) The gold market was one of the last assets to rise on inflation fear headlines, and that is because there has been a regime change in the precious metal market, said Portfolio Wealth Advisors president and CIO Lee Munson.
Investors shouldn’t rush to buy gold because they fear a crisis or hyperinflation. For gold, it is now all about the central bank’s expansion of the balance sheet, Munson told Kitco News, adding that gold will rise to $2,200 before the Federal Reserve starts raising rates.
“I don’t buy gold for a crisis. I buy it because when there’s a crisis, and I think the central banks are going to print money like there’s no tomorrow, that’s the time when I want to have a larger holding of gold,” he said.
“My ultimate target in this cycle of money printing is $2,200 an ounce. That’s between here and when the Fed starts to raise.”
Munson makes a distinction between gold climbing along with the balance sheet expansion and not with inflation fears because not all countries will end up getting hyperinflation with massive money printing. But gold will still be a winner either way.