Gold prices pulled back on Wednesday after climbing above $1,600 for the first time in seven years as tensions between Iran and the United States simmered. Still, the commodity has been one of the best performing assets in the world and one strategist says it’s only getting started.

“I think by 2025 gold will be at least $2,500 to $3,000 an ounce,” Heritage Capital’s Paul Schatz told Yahoo Finance’s On the Move. “I don't think the rally is over in gold by any means.”

Gold prices are up nearly 4% in just the first few weeks of 2020. Earlier this week, the commodity jumped as much as 2.4% after Iran attacked U.S.-led forces in Iraq in retaliation for a U.S. drone strike that killed an Iranian military commander last week.

“Gold sentiment's really hot right now—everybody loves gold,” Schatz said. “ I think gold's a trading vehicle. If you like gold, what do you do? You find a leverage way to play it.”

Schatz has one particular pick that he calls “the big granddaddy of the industry.”

“I chose Newmont (NEM),” he said. “It typically has a leverage effect, so gold goes up $2, that stock goes up 2%. That stock may go up 3%.”

Newmont is a leading gold mining company with jurisdictions in North and South America, Australia and Africa. Newmont shares have gained over 24% in the past year alone.

Gold is often looked at as a flight to safety, but investors have been putting their money into the commodity despite stocks doing well.

“Be very careful with the whole flight to safety thing,” Schatz said. “I always remind people, in 2008 gold initially went from $1,000 to $680 before reflating. Gold is not this great hedge against inflation that people think it is.”

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Valentina Caval is a Producer at Yahoo Finance.

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