Gold is expected to rise by 30% in 2020

Is gold going to jump more than 30%? According to David Roche, president and chief strategist of Independent Stratagi, the answer is definitely positive. It is estimated that by the end of the year the gold price will rise to $ 1,600 an ounce - up more than 6% from its current level of about $ 1,500 an ounce.

"What my gut is saying is that the blackout of fiat currencies by central banks is likely to get worse, with people expected to look for currency replacements," Roche said in an interview with CNBC.

"Gold is a good alternative to currency, as it is safe and that there is no cost to maintain it, as opposed to the negative interest rates on deposits," he added.

He says this will lead to the value of gold, which is expected to rise to $ 2,000 by 2020, a jump of more than 30% over its current price. His remarks come on the backdrop of policy changes by central banks around the world.

In September, the Fed cut the benchmark overnight rate to 1.75% -2%. The European Central Bank (ECB) cut the deposit rate to a negative peak of 0.5% - and launched a massive bond buying program at the same time. In Japan, where the short-term interest rate is already in the negative range, they announced that there may be some relief in the field during the month. According to Roche, central banks are troubled for justified reasons after failing to meet inflation targets. He argues that, rather than admitting to having done enough, central banks are helping governments spend money that the banks themselves print. That's why he decided to invest in gold.