This is not a financial advice article. Refer to a professional for financial advice.
Investors are turning to gold once again after the dollar and yields fell, job growth eased, and underlying inflation measures that better reflect long-term trends accelerated on another surge in rent.
Over the past six months, the price of gold has risen approximately 20%, to more than $2,000 per ounce. That’s within striking distance of gold’s all-time high of $2,075.
Bank Of America Predicts A Gold Bull Run Due To Limited Supply
Bank of America believes gold’s value will surge as a result of higher inflation, an unsteady banking sector, mounting job-market challenges, and limited supply.
The Fed has tried to control rising costs with rate hikes over the past year but only weak employment growth was seen in February despite this effort.
Increasing demand for gold is also having its own effect on prices due to the limited supply available worldwide.
Gold Supply Is Running Out—Pushing Prices High
Gold prices are driven by basic supply-and-demand dynamics, and there is plenty of demand for gold.
In fact, global gold demand increased by 18% in 2022 to 4,741 tons, according to the World Gold Council.
However, with our current usage of gold, it appears that the world could run out of the yellow metal in a mere 27 years.
If we continue at an annual growth rate of 3%, all precious metal reserves may be gone as early as 2050, according to research conducted by CREAF-UAB and CSIC.
Researcher Josep Peñuelas is urging us to consider changing our behavior now or risk losing this irreplaceable resource for future generations.
Could The Price Of Gold Exceed $2,500 This Year?
Gold prices are anticipated to surge in the coming months.
Here are some recent predictions:
- Bank of America technical strategist Paul Ciana predicts that if gold rallies to its all-time high of $2,078, this will start a two-year bull run, which could push prices above $2,500 an ounce.
- Additionally, CMC Markets predicting a rise into the $2,500 – $2,600 range per troy ounce. This prediction aligns with Randy Smallwood’s forecast of gold reaching at least $2500 an ounce by 2023.
- However, some asset managers remain more optimistic about gold hitting even higher this year. For example, Juerg Kiener believes it could hit as high as $4k if mild recessions come to pass.
Potential Stock Market Sell-Off
Over the last 12 months, it’s been a wild ride for investors in US currency. Despite artificial inflation of its value, the dollar has begun to weaken and those holding investments against it are reaping hefty returns.
When gold hits new heights as predicted by some analysts – with many thinking long-term – there will be plenty looking to cash in on massive gains. But unfortunately, that’ll also mean our economy taking another tumble which could spell disaster for ordinary citizens across America.
Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, says investors can turn to gold to play defense against a potential stock market sell-off.
“Our message to investors is to be patient,” Landsberg says. “Also, look to non-stock and bond assets, like gold and the US dollar, to lower risk and potentially increase returns.”
Secure Your Investments Now
Gold is a global asset outside of any government’s control. It is being used by countries and billionaires to protect their own wealth and we have been seeing a rush of institutional investors and multi-millionaires approaching us to secure as much gold as they can.
Furthermore, gold is the perfect asset for those who want to protect their wealth and have easy access.
With a small 5 oz gold bar, worth more than $10,000 in value and untouchable by market fluctuations or manipulation from special interests – it’s no wonder many of our clients are choosing to open both gold IRAs as well as directly own physical gold.
So, take control of your hard-earned money with tangible assets that you can keep on hand wherever life takes you. In other words, if you want to buy in now and enjoy the gains, you should >>> invest in the yellow metal now.
Top 6 Precious Metals Companies
To help you identify the best option to protect and grow your wealth today, we have reviewed and rated the top 6 precious metals companies in the industry for regular purchases and gold IRAs.
We have rated each company on a variety of factors including BBB/BCA ratings and complaints, customer reviews, annual fees, precious metals selection, storage options, promotions, and buy-back programs. You can request a free guide/kit from each company by clicking on the “GET FREE KIT!” button to the right.
|Company||Reviews||Annual Fees||Investment Minimums (IRA)||Preferred Custodian||Free Gold Kit|
Choosing any of these industry-leading precious metals companies will ensure a safe investment. Lastly, when it’s time to liquidate your metals, they all offer buy-back programs.
You can read more about each precious metals company in our 6+ Best Gold IRA Companies Of 2023 (Reviewed & Rated) article. Or, request a Free Gold IRA Guide from our #1 recommended gold IRA company.