Gold Price Prediction Chart
Ive compiled gold price predictions from a number of banks and precious metals analysts.
The table below shows the gold price prediction from various consultancies and independent analysts. Not all gave a forecast for both time periods, but Ive listed what theyve stated publicly. Heres what they think is ahead for gold.
You can see that most analysts predict gold will exceed $2,000 per ounce in 2021. Two project it will average in the $1,900-range. And of those I found, all are very bullish long-term .
A couple interesting points to highlight from these analysts
CPM Groups projection is lower than most, but if gold averages $1,922 in 2021, it would represent an 8.2% increase over 2020 and a record annual average. They also state that we expect prices to rise sharply at some point in the future, to new records significantly higher than $2,000. Such an increase would be expected to be caused by investors buying increased volumes of gold in a future economic and political crisis the period 2023 2025 is perhaps the most likely time period to expect such.
Meanwhile, well note that analyst Ross Norman has won first place in the LBMA gold price survey nine times. He predicts gold will rise 20% this year.
Last, the average 2021 gold price forecasts from these analysts is $2,228.
So what is my 2021 gold price prediction? To answer that question we have to look at the various factors that are likely to have the biggest impact on the price, both positive and negative.
The Coming Monetary Reset
It is inevitable that there will be a monetary reset in the not too distant future to rein in the unlimited fiat currency printing by all major countries. It is clear that gold will play as an important anchor in the reset. There are several proposals for the Reset. We will follow legendary Jim Sinclairs method of Gold price tied to Federal Reserve balance sheet. We will also consider second proposal in tying Gold price to the whole Federal Reserve Monetary base.
Below are the latest key monetary values:
If we do a simple calculation, we will obtain two Reset Gold prices:
- Gold Reset 1 = A/C = $23,000/oz
- Gold Reset 2 = B/C = $82,000/oz
However, if fiat currencies were to lose confidence due to further disasters, any high reset values are possible. The Reset will likely be done in a hurry for a very short duration.
Summary: What Is The Future Of The Gold
In the world of investing, there is of course always going to be risk and potential for loss. Gold is no different, but it is also one of the least risky investments that there is. It is an asset that will always be in demand, either for its uses in Jewelry, or electronics, and it is also in demand from central banks as well as investors.
Gold is also a resource that has an uncertain, but scarce, supply. This supply is also always dwindling which means the demand will keep rising along with the price. More so, the factors that impact the future golds price prediction are only going to get more relevant with the Covid-19 crisis and the ongoing need for a safe haven asset.
Investing in gold has never had a better time to start than right now, the price is primed to explode, but getting involved in trading such a commodity can be difficult due to its physical nature and the exclusivity of many gold brokers who are not so open to new traders.
One alternative option, which makes investing in gold a lot easier, and even possibly more profitable, is to sign up with PrimeXBT. The platform has won awards for its app, as well as been praised for its incredibly low fees. PrimeXBT also allows you to start trading in under 10 minutes, and with a small amount of money.
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Historically Low Global Bond Yields
To begin with, physical gold is ascending to the heavens because income seekers have a narrowing list of options to generate guaranteed income. Bond yields around the world have been plummeting for more than a year, with some developed countries seeing negative yields. Even in instances where income seekers can generate nominal income from government bonds, the yields are so low that they’re unlikely to outpace inflation levels over the long run. Thus, the most logical store of value for the time being isn’t a bond — it’s gold.
Why Is There Less Investment In Gold When The Stock Market Generates High Returns
In general, gold performs relatively poorly when stocks are in a bull market. One reason is that gold is not an income-producing asset, nor does it represent growth in a particular company or sector. Rather, it is valued for its relative scarcity and its socio-historical precedent as something of value. Thus, when the economy is growing and corporations are doing well, stocks tend to be more attractive to investors.
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Prediction #: Gold Prices Will Increase
Even though the price of gold is at an all-time high, many people think that the market will maintain its bullishness and that the price of gold will only go up from here. Some industry experts are predicting that gold could be worth anywhere from $3,000$5,000 per ounce in the next 510 years!
For those who think gold prices will increase, they cite that people are now recognizing the value of gold, which will increase the demand, therefore increasing the value. Others cite unstable economies, due in part to the coronavirus, as the reason for this potential increase, as the world will likely take years to overcome this recession.
How To Buy Silver
There are many ways that you can invest in silver. One of the most straightforward ways is to buy physical silver bars. However, investors might not always want to hold it physically and care for its safety and storage. Investing in silver ETFs is another popular way to gain exposure to silver prices. You can either go for physical silver ETFs like the iShares Silver Trust or ETFs that invest in silver mining companies like the Global X Silver Miners ETF and the ETFMG Prime Junior Silver Miners ETF . Investing in companies mining silver is another way to gain leveraged exposure to silver prices. Trading in silver futures also exposes you to silver prices.
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Gold Price Predictions For Next 5 Years
When looking at the potential price of gold over the next five years, there are a lot of factors that could propel it higher. Thats one advantage gold ownership offers: it isnt about one factor or another, its about any factor that increases fear or uncertainty on the part of investors. And there are a lot of risks surrounding us at this point that could cause any type of crisis.
But probably the biggest catalyst right now is monetary dilution. When a currency is debased, it makes real assets like gold more valuable, since they cant be created with a few computer key strokes.
And the U.S. now has both monetary stimulus and fiscal stimulus. Monetary stimulus usually goes first to the banking system and ends up inflating asset prices. But fiscal stimulus are funds injected directly into the economy and immediately spent. Its like me giving you $100 and you deposit it in a savings account vs. spending it that day on groceries.
You probably dont need me to say it, but the U.S. doesnt have trillions of extra cash to spend on fiscal stimulus packages. It already cant balance a budget. Some claim theyll collect on the backend as jobs are created and the economic grows, tax revenue will increase. But the debts and deficits are so high now theyre mathematically unpayable. And history clearly shows they will lead to inflation .
Where will the funds come from for these stimulus programs? They have to be , which will add to the already bloated deficit.
How High Will Silver Go
The torrid rally in the silver market reached a major milestone this morning as prices hit $21/oz.
On Monday, the Silver spot price tracked by Money Metals Exchange closed at $20.12 .
That marks the first above-$20 close for silver since 2016.
The white-hot silver market is busting through some resistance levels that should clear the way for higher highs ahead. Silver prices traded up Tuesday morning to $21.21 oz.
How high will silver ultimately go?
Technical traders believe that a decisive break above $21 will send silver zooming up to $26 over a relatively short period of time. If silver breaks above $26, then prior highs come into play, including the all-time high around $49.
In terms of U.S. dollars, there is no particular upper limit since the currency is under a continuous devaluation campaign. The value of the dollar might only depreciate at about 2% per year as targeted by the Federal Reserve.
Or it could at some point begin to depreciate a much more rapid pace, sending silver and other hard assets much higher in nominal terms.
Silver could, however, become overvalued in real terms that is, too expensive relative to other assets including gold, copper, real estate, and stocks. It could happen down the road but not anytime soon.
It was only four months ago that silver was fetching a historically cheap price in real terms. It traded its largest discount to gold on record and its lowest level relative to the stock market in a generation.
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Gold Prices Are Rising: How High Can They Go
- Modified: Thursday, 10 March 2022 16:52 GMT
- Gold prices up 10% in 2022 but rally set to extend
- Upgraded Goldman Sachs forecasts suggest $2,500
- Implies further 25% increase, with multiple drivers
- Central bank bids offer significant boost short-term
- But investment & retail buying also drivers in 2022
Gold has risen by almost a double-digit percentage in the early months of the year but some influential forecasters are tipping further significant upside as likely throughout the remainder of 2022, and theres a cocktail of fundamental drivers at play that could yet drive the rally further.
The gold price has long been highly sensitive to the ebb and flow of inflation in the U.S. and other economies, while often sharing a strong correlation with the price of oil which is itself a powerful driver of inflation and a leading indicator of the gold price trajectory.
Its no secret nor is it news that inflation has risen almost across the globe and that it could rise further still as a result of rampant increases in prices of oil, natural gas and other commodities including those of the agricultural variety.
But these are just some of the factors that could be likely to drive the gold price higher in the months and quarters ahead.
The recent rally across commodities and rising global geopolitical uncertainty means that our upside scenario on gold investment and central bank demand is now becoming the base case, says Mikhail Sprogis, a metals strategist at Goldman Sachs.
The Stars Are Perfectly Aligned For The Lustrous Yellow Metal
This has not been an easy year for Wall Street and investors to digest. The coronavirus disease 2019 pandemic has turned societal habits on their head and displaced more than 20 million workers. It also sent equities to their steepest and fastest tailspin in history during the first quarter, only to see the market rebound ferociously over the past four months. Frankly, no one has any idea what to expect next.
However, one group of investors who aren’t going to complain are those who own physical gold or gold mining stocks. Physical gold has set two consecutive record-closing highs to begin the week, and is now up almost $390 an ounce in just the past six months, according to data from Kitco.
Gold has left the benchmark S& P 500 eating its dust in 2020, and there’s a very good probability that this’ll continue for the foreseeable future. Below you’ll find seven reasons why this gold rally still has very long legs.
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The Geopolitical Tension Coupled With The Likely Slowdown In The Global Economy And High Inflation Can Lead To Major Spike In Gold Prices
With the fears of full-fledged war looming around after Russian President Vladimir Putin announced a ‘military operation’ in Ukraine earlier today, gold prices are expected to go up sharply in the near future.
The geopolitical tension, coupled with the likely slowdown in the global economy and high inflation, can lead to a major spike in gold prices. According to experts, gold prices are expected to touch Rs 55,000 this year and Rs 62,000 in next year. In early morning trade today MCX gold rate increased by Rs 1,400 touching Rs 51,750 per 10 gm levels.
Outlook on gold is very bright on account of two reasons. One is the geopolitical event, which can become a full fledged war between Russia, the European and the NATO allies. Apart from that, now there is going to be economic slowdown and a higher inflation across the world. So I don’t think that central banks can now raise the interest rate and that will lead to another spike in inflation across the world. says Kunal Shah, Head of Commodities Research at Nirmal Bang.
Shah added, I am expecting gold prices to shoot up and test levels of Rs 54,000-Rs 55,000 in this year and in next year Rs 60,000-Rs 62,000. So, on an average gold will go up at least by 10,000 rupees in next two years.
Here Are Three Ways To Make Money As Gold Prices Soar
As I’ve previously stated, gold hitting $3,000 by 2022 is a very real possibility. The question is, how should long-term investors approach this expected surge in the price of gold to make money? To that end, I offer three options.
First, if picking out individual gold stocks isn’t your forte, you can consider buying into an exchange-traded fund like the VanEck Vectors Gold Miners ETF. For a reasonably low net annual expense ratio of 0.52%, the VanEck Vectors Gold Miners ETF gives investors exposure to more than four dozen mining stocks from around the world. The beauty of an ETF is you don’t have to worry about the poor performance of one stock ruining your day. The VanEck Vectors Gold Miners ETF is probably your safest bet.
A second way to play a big increase in the price of gold is to purchase a streaming company, such as Wheaton Precious Metals. A streaming company provides up-front capital for mine development in exchange for a percentage of output at a below-market cost. Wheaton then sells what it receives from its partners at market prices and pockets the difference as profit.
Don’t miss out on what looks to be a monster rally in precious metals that’s still in the early innings.
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Gold Price Could Go As High As $10000 Before Economy Recovers
We are fighting a third world war against the pandemic, an unprecedented event, and monetary policy response is set to drive gold prices to levels never seen before, this according to Frank Holmes, CEO of U.S. Global Investors.
We still have negative real interest rates and that bodes extremely well for gold, so I think gold can be easily $2,700 like palladium was last year. It can be $5,000. I dont know when the money printing stops, but it could be $10,000 to get the global economy back and functioning, Holmes said.
Holmes comments come as the Federal Reserve recently announced $2.3 trillion in stimulus programs aimed at businesses and households, but the money printing wont stop there, he said.
What I do see is that the U.S. will spend over $10 trillion. Both the Senate, and Trump and Congress will spend $5 trillion when this is finished. Weve seen the Federal Reserve also commit $5 trillion of expanding their balance sheet, so this is going to be unprecedented, he said.
Gold prices response to this stimulus could mirror its pattern following the financial crisis of 2008, Holmes noted.
This is going to create unprecedented growth in paper money, and what youre going to see is like 2008 and 2009, gold ran up, sold off, got a base and all of a sudden it started to march up, as this money printing took place, he said.
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How High Can Gold Prices Go
Gold will continue to do well through the second half of the year even if equity markets continue their record drive from the March lows, according to one market strategist.
It has been a big week for the gold market as surging momentum has pushed priced to their highest level in nearly eight years. In an interview with Kitco News, George Milling-Stanley, chief gold strategist at State Street Global Advisors, said that he continues to expected gold to push higher through the rest of the year. Although his base case doesnt call for $2,000 gold by year-end, he added that a move to that level is not out of the realm of possibilities.
In a world awash in uncertainty and volatility, gold has done exactly what it was supposed to do, he added.
Im really confident that we’re going to see higher prices during the remainder of this year. How much higher is really the big question for us all to be thinking about right now. he said.
Although some investors have been concerned that a record recovery in equity markets could take some momentum away from golds safe-haven appeal, Milling-Stanley said that investors shouldnt fear equity markets. He noted that gold has held up well in the last few months as equities have bounced higher, highlighting its low correlation to other assets.
Milling-Stanley added that he is not convinced that the rally in equity markets is sustainable.
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