Gold at $3,000? It’s a lofty target price, but if anyone knows how to call the price of gold, it may be Jan van Eck.
Jan’s father John launched the first American gold fund, in 1956. And in 1968, he moved the bulk of the portfolio into gold miner equities, just in time for the gold bull market that accompanied the end of the Bretton Woods system in the early 1970s.
With real interest rates currently negative in many countries, and in a deflationary environment, with unprecedented worldwide central bank stimulus, the firm’s call is for gold to touch $3,400 an ounce. That represents roughly 68% upside from current levels.
That first-ever gold mutual fund, VanEck International Investors Gold Fund has $1.2 billion in assets and has returned more than 56% in the year to date through August 3. The firm has also launched several exchange-traded funds to provide exposure to the precious metal.
The company offers the VanEck Vectors Gold Miners ETF, and the only physical gold exchange-traded product that offers investors the opportunity to take delivery of their underlying holdings, the VanEck Merk Gold Trust. (OUNZ).
As of June 30, 2020, VanEck had $23.5 billion in assets across various gold-related strategies.
This article originally appeared on MarketWatch.
