SAN ANTONIO — Right now the price of gold sits around $5,100 an ounce, which is double where it sat just over one year ago. And the war in Iran could propel the price upwards even further.
At the end of January just over one month ago, the price of gold passed $5,000. It is still sitting above that level today, and experts say $6,000 may be in the cards!
“At a time of global uncertainty like we’re in now, you need to have some gold in your portfolio,” Craig Parry, the Chairman & CEO of Vizsla Copper Corp. (TSX-V: VCU | OTCQB: VCUFF) told us. “You need to have some silver in your portfolio, and you don’t have to go to a shop and try and buy it, which is near impossible to do at the moment.”
It is impossible because the demand for that precious metal is so high, especially with the price cooling a bit over the past month.
“The gold price, certainly gold and silver for that matter, got overbought recently. And, to have a retracement or a settling a digestion of some of these gains makes sense in the near term,” Tarek Saab, the founder of Texas Precious Metals said.
During times of war the price of gold typically rallies. It did so during the 1970s with the Iran-Iraq War, again following the 9/11 attacks and the war on terror, and again when Russia invaded Ukraine. And is repeating history right now.
“It spiked pretty quickly at the start of the Gulf War, and then peeled back to pre-war levels once that conflict had stabilized,” Warwick Smith, the CEO & Director of the American Pacific Mining Corp. (CSE: USGD | OTCQX: USGDF) added. “I think what we’re seeing today is a bit of the same.”
So should you sell grandma’s gold now? The experts say, no. And hold onto your silver too.
Parry told us, “Over the next couple of years, we’re going to see extraordinarily high silver prices, potentially three, four or $500 per ounce, silver prices certainly trending that way.”