11 Top Gold Price Forecasts of Smart Money–How High Can It Go?

Golden Pocket Watch - Time will tell wich forecasts were precise
  • Gold price forecasts jumped these weeks with the gold price.
  • The highest ones reach thousands of dollars.
  • “Smart Money” is predicting higher gold prices and may buy gold.
  • The higher the price of gold goes, the more optimistic analysts and investors we see.
  • But, analysts are betting seldom against the trend.

Buffalo gold coin

 

Is This The Beginning of a Beautiful Gold Price Bubble?

How high can gold price go?–are many investors asking in the last weeks as the upward trend is more and more clear. Is it possible that we are only at the beginning of the formation of a gold price bubble?

Gold futures price rose above the key psychological level of 1,800 USD in the last days, reaching a new 9-year high at $1,829.8. Gold futures’ all-time high in 2011 was by $1,920.70. But gold is on new historical highs in most other currencies (CAD, AUD, JPY, CHF, etc.). (Silver is nearing the 52-weeks high by $20.0.) See the charts below and at the end:

Gold Price, 2-Years Chart - What Is Your Forecast?
Gold Price, 2-Years Chart – What Is Your Forecast? Please, Comment! (Chart: Tradingview.com)

The reasons are clear, there is a lot of uncertainty in the economy. The second wave of Covid-19 is affecting a lot of countries already. Analysts are groping in the dark about the length and depth of the crisis. Central banks are pouring unprecedented amounts of money into the market. Although inflation is low now, government bond yields are even lower. Real interest rates are negative almost everywhere.

The jump in the number of U.S. coronavirus-infections causes fresh lockdowns and slows down the economic recovery. Also, a weaker dollar supports gold and other commodities. 

Old Gold Coin

 

10. Average Gold Price Forecast: $1,743

HSBC said in a note it expected gold to average $1,743 an ounce this year, but to fall to about $1,500 in the coming years.

(Reuters.)

Gold bars (bullion)

11: Short-Term Forecast: $1,670, Long Term: 5,000

Difficult to say if this is good news or bad news, as most people invest short term. “Calls for $1,900 and $2,000 gold are everywhere I look at. (…) Gold is at a level of extreme resistance. (…) we will see a move down to $1,670 and possibly all the way down to $1,600 in a painstakingly long but necessary correction (…) gold prices will reach at least $5,000 over the next five to ten years.” By Sam Laakso

(ZeroHedge)

 

 

How High Will Gold Price Go, Then?

A positive, self-reinforcing spiral may have begun. The higher the price of gold goes, the more optimistic analysts and investors we see. And more and more people are buying gold, both small and large investors. As fresh central bank money is pouring into economies, in recent years gurus often talked about “all-asset bubbles” already. Perhaps this will only reach the precious metals in the next months?

But over the years, I’ve also observed that asset prices rarely reach analysts ’target prices (unless there’s a general bull market). It makes sense because if everyone thinks gold is worth three thousand dollars, no one will want to give that much for it. Investors want to buy cheaper, at least 15-20 percent lower so they can sell it at a good profit when it becomes 3,000. Except for a few very long-term-minded investors, but these are rare these days. For many, a few months are already a long period in speculation.

Another old observation is that in an upward trend, analysts predict mostly ten to twenty percent more than the current price. Perhaps because this method is most likely to approximate the future price. Going against the trend is very dangerous and often fails. Many try to find at least the correct direction of the prices.

Was gold a good investment in the past, or not? Dont forget to read: DIY Fake News Generator –Was Gold a Better Investment, or Stocks?

 

Disclaimer

I’m not a certified financial advisor nor a certified financial analyst, accountant nor lawyer. The contents on my site and in my posts are for informational and entertainment purposes and reflecting my collection of data, ideas, opinions. Please, make your proper research or consult your advisors before making any investment or financial or legal decisions.

I have open positions in silver (long), platinum (long), junior gold miners (long), crude oil (short), German stocks (short), uranium miners (long), S&P 500 (short) and cryptocurrencies (long) at the time of writing.

(Photos: Pixabay.com.) 

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