Billionaire “Bond King” Jeffrey Gundlach says he continues to be bullish on one asset that’s outpacing stocks and Bitcoin (BTC) so far this year.
In his latest webcast, the DoubleLine Capital CEO says he believes gold will hit a new all-time high before the end of the year.
According to Gundlach, he’s comfortable holding the precious metal as long as the United States prints budget deficits and foreign money leaves the country.
“I think gold could very well go to $4,000 this year, and it’s gone straight vertical.
We had a consolidation period a few weeks back, and I made the comment that something that goes up this much and doesn’t drop, but just consolidates going sideways, is usually a precursor for another breakout to the upside, which has just transpired.
So gold is now above $3,500, and there are many days where gold has movements of over $25. And I’ve seen quite a few days in the last few months that gold has actually gone up by even $50 in a single day.
We can also compare gold to Bitcoin. Bitcoin has done well this year. It’s up 19%. But gold has had double the return of Bitcoin. So it’s clear to me that gold has become more of a permanent allocation for a lot of people.
There’s that fund that used to be called the permanent fund that had four categories in it: gold, cash, stocks, and maybe commodities. I don’t remember. That’s doing quite well because gold is obviously outperforming stocks, and it’s outperforming Bitcoin on a year-to-date basis.
So I’m still hanging in there owning gold until such time as we get a totally different regime as regards the deficit situation and the kind of international flow situation, which is now kind of not benefiting the United States. And I think that’s going to be a trend for the next few years.”
At time of writing, gold is trading for $3,643, while Bitcoin is worth $115,950.
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