What Are The Gold Price Predictions For Next 5 Years? Should You Save Gold Or Money?
Saving gold is an investment option that has become increasingly prevalent in recent years. This is because the value of gold will be more profitable in the future than the value of money which continues to be eroded by inflation. Why is that? Then, what about the gold price predictions for the next 5 years? Come on, see all the full explanations.
Saving Money vs Saving Gold
Consider the following illustration. For example, you save money in the bank for one million rupiahs at an interest of 1.25% per year. Meanwhile, the annual rate of inflation is around 2.7%. This means that even though your money increases in nominal terms the following year, the value of your money decreases.
In contrast to gold, which actually increases in value relatively every year. One of the most compelling reasons is due to the limited and non-renewable availability of precious metal natural resources. With less and less gold available in the world and over time, it is only natural that its value at a later date will be much higher.
What is the prediction for the price of gold in the next 5 to 10 years?
So far this year, gold has strengthened more than 13% and is near an 8 year high. Gold’s volatility is also high, and gold price predictions for the next 5 years are predicted to increase. Many investors will hunt for gold both in physical and digital form.
The price of gold still has a lot of room to strengthen. Currently, we see gold in the range of US $ 1,750 / troy ounce. But, it has the potential to reach US $ 1,800 or even to the US $ 1,900 / troy ounce in the next quarter.
The basis for this prediction is the same as what many analysts have mentioned. The central bank’s low-interest-rate policy and the global central bank’s quantitative easing (QE) program. This policy caused the economy to flood with liquidity. And gold is predicted to continue to advance in the next 5 years. With high volatility, meaning that the price will fluctuate by a large percentage, even though the trend in size is still strengthening.
In the next 5 years, gold will still be volatile. Gold will trade between the US $ 3,000 and the US $ 4,000 / troy ounce in the next 5 to 10 years. We are likely to see gold at levels we have never imagined before seeing how much liquidity is being injected into the economy.
The Best Moment to Buy Gold
Prices are already exorbitant, when is the right time to buy gold? If we already understand the movement of gold prices as described above, there is no significant difference when buying gold when prices rise or when prices fall. Because in the end, the price of gold will continue to rise in the long run. Therefore, we must avoid the pattern of brokers who buys gold when the price goes down and sell it when it goes up.
So, based on the explanation above, after knowing the gold price predictions for the next 5 years, it’s good for those who already have gold not to rush to sell it. But still saved until the profits have multiplied. When forced to be taken for more priority or productive needs, we must also be wise, while still setting aside some. For those who don’t have gold and want to start saving, it’s good to find the most appropriate moment. At least we have to regularly monitor gold price movements.