Gold is a popular investment due to the rising inflation rates and increased risks of recession. The turmoil in banking has also contributed to gold's popularity. Gold prices have risen by about 10% in the past year. They were trading at around $2,020 per ounce on Thursday. This is within striking distance from the peak of $2,075 in August 2020, when the Covid-19 Crisis was just beginning. Some market experts believe gold still has more to offer. David Neuhauser, a hedge fund manager, believes that gold prices could reach $3,000 within the next two years depending on what recessionary scenario comes true. "Do we expect a prolonged recession or will we just skirt around it, i.e. make a shallow move to the bottom?" Neuhauser said that Livermore Partners' chief investment officer, Michael Neuhauser. He told CNBC’s “Street Signs Asia” that the impact of the global economy on gold could determine whether it sees $2.200 or $2.300 in the coming months or if the effect is more pronounced. "That's what will...determine] if gold sees 2,200 or $2300 potential within the next few months or if you see a bigger, more pronounced affect, which may even lead to gold reaching $3,000 per ounce over the next two years." CNBC Pro screened FactSet to find stocks that could help investors cash in on a potential rise in gold prices. These included the Global X Gold Explorers ETF, the iShares MSCI Global Gold Miners ETF, the VanEck Gold Miners ETF, and the SPDR S & P Metals and Mining ETF. Over 50% of analysts who cover these stocks rate them as buys, with an average upside of 20%. Canada's NovaGold Resources is the stock that has the most potential upside. More than 66% analysts rate the stock as a buy. Analysts also rated Karora Resources, a mineral resource company. They gave the stock an average gain of 37.1%. The gold mining operations of the company are located in Western Australia. It aims to produce between 185,000 and 205,000 ounces per year by 2024.
Neuhauser, a Livermore-based specialist in energy, industrials and financials, believes that gold is the "best" asset class for investors to hold, given market conditions such as lower yields and a weaker U.S. Dollar, along with geopolitical tensions. He said that the hedge fund's exposure to gold is well over 20%. This exposure comes from small cap miners who we believe will have a tremendous impact on the metal over the next few years. The fund owns gold-related assets. Michael Bloom, CNBC's reporter, contributed to the reporting.