A Decade-Long Bull Run: Could Gold Hit $5000 in the Next 10 Years?
Investment analysts at Incrementum AG believe that the gold market is on its way for a decade-long Bull Run that could witness its prices skyrocketing up to $5000 per ounce across a span of ten years.
In their report, titled “In Gold We Trust – 2020 Extended Edition ,” the analysts pointed at a bullish outlook for gold in the long run.
Is Coronavirus Alone to Be Blamed for the Global Recession?
The report pointed out that the COVID-19 outbreak in March only inflamed the already weak economic situation witnessed in 2019 when the Fed’s interest rates were slashed several times.
Before 2019, interest rates were reduced almost ten years back in 2009, when the global economies were under the daunting effects of the Great Recession (2008).
GDP rates and trade sectors were crashing down for even the biggest economies in 2019, and financial recession, and though the stock markets reached new highs, the decline in economic activity was still a significant cause of concern.
According to Incrementum, the COVID-19 pandemic was merely the last drop that made the cup run over.
What’s the Outlook for Global Economy?
According to the World Bank, the shock of the massive outbreak has plunged nations worldwide into the most severe recession since World War II. The bank also predicted that the global economy is all set to decline by approximately 5.2 percent in 2020.
What’s more alarming is that this will almost certainly happen despite the extraordinary fiscal and monetary support rolled out by the governments to help businesses thrive during these unprecedented times.
The 2nd quarter will likely be devastating for the West’s economy; however, a large percentage of Asia suffered the repercussions of the pandemic in the first quarter this year.
How Will Gold Protect Investors Amid the Current Economic Crises?
Incrementum AG warned that the global economy could be going in for a terrific debt cycle, and the governments will have to account for it sooner or later. The rise in national debts will result in higher inflation rates across the globe.
Gold has always proven to be an excellent hedge against inflation during the worst economic recessions throughout history. In light of the predicted economic recession by the World Bank, gold’s demand will continue to rise far more than the recent increases, leading to magnificent price gains in the coming years.
Rising concerns about the national debt and government bonds will make the bond investors shift their investments to safe-haven assets, like gold and silver.
Should You Invest in Gold?
The above chart tells us that in 2019, when COVID-19 was known to none, and the stock markets were booming, gold value still saw a rise of 18.83 percent compared to the preceding year.
With economies only beginning to feel the brunt of the pandemic, it would be fair to expect a sharp rise in the future, as indicated in the graph below.
Source: Incrementum AG
It may look like an improbably bold prediction, but we’ve witnessed gold performance during past recessions, and this time around, it’s only predicted to be worse.
If you’re inclined to believe that gold may surge up to $5000 or above within the next ten years, get in touch with Orion Metal Exchange to buy gold bullion online. With the help of our investment experts’ advice, you can also open a gold IRA.
Call us at 1-800-559-0088 to learn more about our services!