Have anyone thought that the gold prices would surpass the all-time high mark of US$ 2,050/ounce during the pandemic time? Well, even the top experts didn’t expect such a huge rise in the gold rates in 2019. While its price has dipped a little bit than the highest price ever, that has created an opportunity for investors to make room for making huge money in the future.
The majority of them are diversifying their funds with gold and few other metals to make most of this tough time. However, the real question is, what will be the gold rate in the next five years? Is it still good to invest at the present rate? We will try to answer all the questions and tell about the factors that will affect the gold price in the upcoming months and years. Let’s have a look at the complete post and gain some valuable knowledge.
What Will Be the Main Factors Affecting Gold Prices in the Next Five Years?
Gold is an important asset that investors love all over the world. It is one of the most favored investment methods due to its ability to get transformed into liquid money quite easily. Look at the major factors that will affect the price of gold in the upcoming future:
- Demand & Supply
There will be a huge demand for gold thanks to its unbelievable price rise during the covid-19 era. The continuous interest of investors will make it a center point of commodity’s investment for a foreseeable time. It makes sure the price increase trend doesn’t look to get reduced in the next few years.
- Gold Mining Reduction
Reduction in mining has become a premier factor in increasing Gold price in USA in the past few months. Lockdown has severely affected this activity in many countries, due to which many have stopped it. It will continually boost the gold rates making it a perfect investment to make. In fact, the chances of a shortage in gold for investment are quite possible in few countries.
- Economic Slowdown
The second wave of covid-19 has hit the world harder than we have expected. It has resulted in many countries like India who have implemented lockdowns across the country. This economic disruption has caused many businesses to shut down the operations. Due to this, many investors have started avoiding making risky investments and start investing in safe heaven like 10 karat Gold.
- High Liquidity
Many governments have declared economic packages for pumping up the liquidity in the market. It has reduced the interest rates that kept investors from stopping investing in other assets. It is evident that the covid-19 is here to stay for a long time, so gold will stay center point of investment in the next five years. The people can liquefy their gold whenever there is a need for cash.
- Global Jewelry Demand
Gold and silver price will continue taking a steep turn thanks to the increasing jewelry demand on the global level. According to latest reports, the United States and India is the biggest purchaser of gold for producing jewelry. Additionally, these countries are also using gold in manufacturing devices like GPS & medical devices.
- Future Protection
A common household that doesn’t have much information about stock markets and cryptocurrencies prefers to invest in gold to protect their future. Most of them invest in gold thanks to its easy liquidation during emergency times.
What are the major predictions about gold for the next five years?
There is a lot of uncertainty about investing in gold nowadays. Our team has evaluated all the factors mentioned above for giving two predictions. Let’s have a look at both these predictions for making the investment decision easily.
- Gold Price will Rise
Gold rates may have reached the all-time price, but many top investors think the price will increase by 20%. According to industry experts, the gold value may even surpass the US$ 3,500 mark in the next 3 to 5 years. Furthermore, a great number of people are now recognizing the gold value that will increase the demand for boosting its value.
That’s not all, there are many people who believe unstable economies can be another reason for boosting the stock value of gold. They think that it will take many years to come out of the covid-19 recession for the world that will increase the gold price.
- Gold Rates Will Reduce
Many investors believe gold prices work differently than other commodities. They believe that gold has already peaked during this tough time and will need many years to recover.
A handy number of them believe that it will result in decreasing gold price and it may reduce to less than US$ 1,800 per ounce in the next few years. However, it is quite harder to believe considering the current scenario.
- Gold Rates will Stay Stable
The next thing that can possibly happen is the gold rates will stay normal for upcoming years. There is a group of experts who think it will continue to stay between US$ 1,700 & US$ 2,100 per ounce for the next five years. They think that the investors won’t have to incur high losses on their investment at all.
What should you do- whether to invest in gold or not?
We believe that you understand the prediction for gold is mostly positive by investors. While few think the price will fall, this bullishness will stay for at least 1-2 years, contributing to increasing prices by 2025. It is not difficult to believe that its price will surpass an all-time high of US$ 2,000 by the end of 2021.
It is definitely a great time to invest your money in gold and enjoy wonderful returns. It means the readers can think about investing in gold for the next few years. If there is a query about gold or any other commodity, we suggest writing about it in the comment section.