The gold price could rise to $3,000 say analysts. Here’s how I’d aim to profit

first_img See all posts by Edward Sheldon, CFA Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! The price of gold has risen in 2020, so far. Driven by the high level of economic uncertainty associated with Covid-19, as well as an unprecedented amount of stimulus from central banks, the gold price has jumped from $1,520/oz to $1,732/oz.Some analysts believe the gold price can go much higher though. According to analysts at Bank of America, the price of the yellow metal could potentially rise to $3,000 over the next 18 months. “As central banks and governments double their balance sheets and fiscal deficits, respectively, we have also decided to up our 18-month gold target from $2,000 to $3,000/oz”, they wrote recently.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…If you’re bullish on gold and expect the price to keep rising, there are a number of ways to gain exposure to the commodity. Here’s a look at three options.Gold bullionOne is to simply buy gold bullion (physical gold). You can buy through high street gold dealers (this may be challenging in the current environment) and online gold dealers.The advantage of this approach is that you can take possession of your gold. However, on the downside, costs can be high, and you’ll also need to store it securely.ETFs: an easy way to profit from a rise in the gold priceAnother option is to invest in a gold exchange-traded fund (ETFs). These are securities listed on the stock market and designed to track the gold price. On investment platforms such as Hargreaves Lansdown, you’ll find plenty of gold ETFs and you can hold them within an ISA or SIPP.The main advantage of gold ETFs is that they’re a very convenient way of investing in gold. You can literally invest within minutes. You also don’t need to worry about storage. On the downside, you can’t take physical possession of the commodity.Gold stocksFinally, a third way is by investing in gold stocks. These often rise when the price of gold is rising. This is because a higher gold price generally translates to higher revenues and profits for the underlying company.In the UK, there are many gold-producing companies listed on the London Stock Exchange. One example is FTSE 100 company Polymetal International. It’s a top-10 global gold producer with assets in Russia and Kazakhstan. Year to date, Polymetal shares are up over 40%.Another example is FTSE 250 gold miner Centamin. It’s a company focused mainly on mining gold in Egypt. This year, it’s up about 27%. Other UK gold stocks that have performed well in 2020 include Petropavlovsk, Highland Gold Mining, and Greatland Gold.A word of caution, however. Gold stocks can be volatile. While they can deliver fantastic returns when the gold price is rising, they can also fall sharply when gold falls. It’s also worth noting that related stocks don’t always rise when the price is rising. Gold mining is a complex business and there are many things that can go wrong.So, if you’re thinking about investing in gold stocks in order to profit from the gold price, it’s a smart idea to focus on risk, as well as reward. Enter Your Email Addresscenter_img Edward Sheldon, CFA | Saturday, 25th April, 2020 Edward Sheldon owns shares in Hargreaves Lansdown. The Motley Fool UK has recommended Hargreaves Lansdown. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Simply click below to discover how you can take advantage of this. The gold price could rise to $3,000 say analysts. Here’s how I’d aim to profit Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. “This Stock Could Be Like Buying Amazon in 1997”last_img read more