It’s always difficult to say with any great deal of accuracy what gold investing will look like at X point in the future, but that certainly doesn’t stop experts from attempting to develop their projections anyway. And according to The Australia and New Zealand Banking Group Ltd., there’s a lot of reason for positivity with regard to the future value of gold. The banking group projects prices of gold could more than double to as much as $3,000 an ounce by 2030, thanks to growing demand from Asia and the global central banks.
ANZ posted some of its research notes online, with Warren Hogan and Victor Thianpiriya (analysts from the organization) stating that “over the next five to 10 years, the fundamentals of substantial economic growth and a constrained financial system will continue to provide support for gold.”
Perhaps the biggest reason why the value of gold could soar is because of the increased demand at the central banks, particularly in emerging markets. These banks are going to need to have a larger stock of physical gold held in their vaults, so they’ll be able to back up the confidence in exchange rates and their economies as a whole. Meanwhile, central banks in more advanced economies will likely continue to maintain their existing gold holdings. Overall, this creates net buying, as emerging markets will buy more of it up and advanced economies will not be selling.
Asia is expected to be a major factor in gold price surges
The ANZ report indicates there are many reasons to believe that China and other Asian countries and regions will play significant roles in increasing the global gold trade and international gold values. China is the largest consumer and producer of gold, and its demand continues to rise.
Currently the report forecasts gold coming in at $2,400 an ounce for 2030, but there is a possibility that there will be significantly more bullish scenarios for the metal. In the most optimistic projections, Gold could surpass $3,000 an ounce by 2030. Even if that scenario is not particularly likely, it is still reasonable to expect gold to surpass $2,000 an ounce within the next decade, which would be a significant milestone for the metal.
So, what does all of this mean for investors?
If the projections are correct, now is definitely a good time to buy, especially for people who have been thinking about getting into gold investing but have not yet begun making their purchases. For people who already have significant gold assets built up, those assets could become quite a bit more valuable in the coming 11 years, so long as the market plays out the way many researchers think it will.
If you’re interested in learning more about the benefits of gold investing and the steps you should take next if it’s something you’re interested in, we encourage you to contact the team at Gold Wealth Financial today with any questions you have. We’ll be happy to help you get started!
- by Steve Hunt
Categorised in: Gold Investing