Supply and Demand
The global demand for gold is increasing as seen by the recent spike and continued raise in the gold price. The Bank of America forecasts the gold price to be US$3,000/oz in 2021 (businessinsider.com April 21, 2020). Governments and Central Banks are printing money due to the global economic crisis and Reserve banks cannot print gold.
Gold has broken out of a 10-year bear market for gold focused junior exploration companies. This has led to limited gold exploration over the past 10 years, with no substantial global discoveries.
On May 9, 2020 according to a report from the Financial Times*. Gold is “one of the most undervalued” assets available and it’s worth “multiples of its current price” due to the “fanatical debasement of money by all of the world’s central banks.”