In a webinar on Thursday, Joe Foster, portfolio manager at Van Eck, spoke about what happened to gold and gold stocks, according to Investing News. “I have been asked a lot lately: Why doesn’t gold behave like a safe haven?” Said Foster. “Or: Are the gold companies in financial trouble?””The short answer is: gold has actually behaved like a safe haven and will continue to do so in the future, and gold companies are not in financial difficulties. In fact, the opposite is true – gold companies are financially very healthy.”
In general, Van Eck’s best scenario for the overall market would be a “short, strong recession followed by a slower recovery” and would bring the economy back to normal in 2021.The company’s worst-case scenario would be a “hard recession or even depression.” The former would lead to a higher gold price – perhaps $ 2,000 an ounce in the next two years – while the latter would bring the yellow precious metal “much higher”.