Ronald Peter Stoeferle February 2022
All eyes are on Russia and Ukraine after tensions erupted on Thursday (February 24).
Ukraine has described the situation as a “full-scale invasion” amid shelling, missile strikes, and other activities; many global leaders have condemned the actions of Russian President Vladimir Putin.
Speaking on Wednesday (February 23), Ronald-Peter Stoeferle, managing partner at Incrementum, said the situation is likely to have a long-term impact on markets, although not necessarily on gold.
“I think it will have a long-lasting impact on markets. (But) when it comes to gold, I think that people completely overestimate the geopolitical premium,” he told the Investing News Network.
Stoeferle, who is also the author of the “In Gold We Trust” report, noted that many other elements are working in gold’s favor, such as nervousness in the equity markets, negative real rates and concerns about a recession.
“Gold works as a hedge against turmoil in equity markets. Gold works as an investment in an environment of negative real rates. It works as a dollar hedge, and I think it works as some sort of a recession hedge,” he noted.
He is expecting new all-time highs for the yellow metal in 2022, noting that once it gets back to its previous all-time high it will face little resistance. At that point, Stoeferle thinks gold could “easily” go to US$2,300. Importantly, he explained, the precious metal seems to be looking more attractive to institutional players.
“I think that gold really has reappeared on (their) radar screens, and I expect a pretty, pretty, pretty good performance this year,” he explained during the interview.
When asked if silver will go along for the ride in a scenario where gold is reaching fresh all-time highs, Stoeferle said if his expectations for gold come to pass silver will likely get some traction as well.
“If we go to new all-time highs (in gold), I could easily see silver at US$30 or even higher, because obviously it also has a very attractive supply/demand setup,” he commented.
“Therefore, if my call on gold is correct, you should definitely reconsider having some silver.”
Watch the interview above for more from Stoeferle on gold and silver.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.