The price of Gold is poised to hit $3000; Silver on its way to top $50 the benchmark.
After a multi-week streak, the price of gold once again hit new all-time highs, breaking the $2,000-per-ounce level for the first time ever this week. According to BofA Securities, global economic conditions suggest even more upside ahead which is great news for precious metals investors.
Analysts predict the price of gold will top at $3,000 within the next 12 months with silver expected to rally as high as $50/ounce in the medium-term.
Bank of America also projected that central banks’ stimulus frenzy amid the coronavirus pandemic will drive gold to a lofty record. They also suggested that monetary authorities will continue spending trillions of dollars to keep economies afloat, causing a dollar decrease and pushing investors further into gold and silver.
Most importantly, they believe there’s still plenty of room for investors to pile into precious metals. With the economic turmoil and rising COVID cases, market volatility around the world is predicted to send the gold value 50% higher than its record.
With an official recession and possible bank collapse looming, monetary authorities are poised to buy record amounts of financial assets and double the sizes of their balance sheets. That alone has catalyzed central banks to buy up nearly $1.4 trillion of assets to calm roiled markets. However, these policies will likely place outside pressure on currencies, driving massive interest in gold and it’s scarcity.
Given the current economic climate and health crisis, more and more investors are flocking to safe haven options, seeing tremendous growth potential for gold allocations in their portfolios as interest rates remain low.
Portfolio hedging can truly diversify your retirement plan because it minimizes losses and the negative impact of adverse market movements and price swings. It counterbalances volatile risks on your core investments, allowing you to maximize profit safely.