However, this picture has shifted in the past three years, with gold supplies moving from “excessive to deficient.” This is why Wells Fargo has turned positive on gold.

“Such times in the past have sparked some of gold’s strongest price rallies … We believe gold could be on the eve of a new commodity bull super-cycle, which would be only the seventh since the year 1800,” LaForge said. “Gold prices have climbed over 40% since 2018, and we believe that more gains lie ahead.”

Aside from the supply argument, gold will also be driven by its more well-known trends, including low real interest rates, money printing, and a weaker U.S. dollar, according to Wells Fargo.

“These trends remain largely intact, and we remain gold bulls with a 2021 target range of $2,100 to $2,200,” LaForge said.