It’s no secret that gold has always been one of the most traded commodities, and certainly one of the most popular investments. Gold is a precious metal that has served as a hedge against inflation for years and it provides a safe haven for investors in times of turmoil and geo-political, as well as economical instability.
When looking at gold price predictions for next 5 years, it’s obvious that gold is once again being highly sought-after by investors. The main reason that the future is so uncertain and the global economy is in shambles is due to the recent pandemic and conflicts that are currently happening. With that in mind, let’s look at the gold price forecast from Gold Alliance.
The outlook for gold prices in the wake of Covid-19
The Covid-19 pandemic has caught everyone off guard. The world simply wasn’t ready for a virus outbreak of that scale and the global economy suffered for it. However, the price of gold has been steadily increasing and continues to do so. The current price of gold is around $1850 per ounce and many experts predict that the price of gold will only continue to increase.
As you are already quite aware, the world managed to get out of the pandemic only to enter a major conflict that involves numerous countries around the world. The economy didn’t have enough time to recover, so investors are turning to assets that will safeguard their investments and one of those assets is gold.
Gold prices could top $3,000 an ounce in the near future
As mentioned before, gold prices have been on the rise in recent years, and there is a possibility that they could continue to increase in the near future. Some experts believe that gold could even top $3,000 an ounce within the next five years. The main reason is that there are a few factors that are contributing to the gold price increase. Here are just some of them.
- Inflation – The post-pandemic period has hit everyone pretty hard and many countries are still recovering from the outbreak. Investors fear inflation and are looking for a hedge, which is why they’re investing in gold. That said, we can already see the signs of inflation as the US inflation rate reached 7%, which is the highest inflation rate in the last 40 years.
- Global conflict – The Russian-Ukrainian conflict has drawn many countries in and we’re on a verge of a much serious problem should things escalate further. The conflict has affected the global economy as the grain and wheat shortages occur and gas prices skyrocket. This has resulted in gold price increase as investors are pulling away from other commodities and focusing their attention to precious metals.
- The US public debt – The US public debt has almost reached $30 trillion. There’s fear that the value of the US dollar will erode and that other countries will seek out more suitable alternatives.
When is the best time to buy gold?
Since the stock market is not doing well and stocks have been overvalued for some time it may result in another stock market crash. Furthermore, the global economy is also not doing so well and conflicts are brewing all over the world.
In times of such uncertainty, the price of gold tends to skyrocket. If there’s a good time to invest in gold now is the right moment to do so. According to the forecasts and if we look at the past events, the price of gold will most likely continue to increase. Those who have the resources to invest in gold now are likely to not only capitalize but also protect their investment in the future.
The price of gold has been relatively stable for years. Now that the world is once again in the state of turmoil, it’s highly likely that the price of gold will increase even further. In the next five years or so, we might be bale to see a rapid surge in gold prices as more and more investors turn to this hedge against inflation and global instability.