The good news for gold ETFs is that inflation could serve as a catalyst for the yellow metal. Rising inflation could also prove to be a catalyst for gold ETFs. By some metrics, the Fed has under-estimated U.S. inflation, which could prove beneficial to gold because the yellow metal is historically a popular inflation fighter.

“Prices could surpass $5,000 an ounce in five years, from about $1,280 now, as investors seek returns amid a prolonged period of cheap money and use the metal as a haven from geopolitical and financial risk, McEwen Mining Inc. Chief Executive Officer Rob McEwen said,” reports Bloomberg.

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Tom Lydon’s clients own shares of GLD.