Investing in gold has always been a worthwhile option, even when the price is climbing like it has done over the past few months. As the demand for safe haven assets is likely to increase exponentially, the price projections of $3,000 per ounce may be blown out of the water altogether,
Safe Haven Asset Demand
If the gold futures are any indication, demand for the world’s leading precious metal is likely to keep increasing. MCX Gold futures have risen slightly once again, whereas silver is seemingly losing a bit of steam. This latter aspect may only be a temporary trend, however.
Following the COVID-19 crisis, it is plausible to assume that safe haven assets will become more popular. There will be ample financial turmoil affecting both consumers and corporations alike. For now, the only answer from the government is to print more money and devalue all existing currency in circulation already.
Moreover, it now seems as if a second major wave of COVID-19 infections is rearing its head. This has been predicted for some time, yet the crisis had seemingly been averted successfully. Today, things look a lot worse, further eroding confidence in governments and central banks. Gold will, as the leading safe haven asset, be in higher demand because of it.
Looking at the current futures prices, it seems logical to expect a continuation of the uptrend. Gold will keep going up, despite its existing 16% gain in 2020 so far. It is still the go-to hedge and safe haven to protect against inflation and debasement of the US Dollar.
Gold Price Projections Become Outlandish
Experts and analysts have weighed in on the future gold price recently. Price projections range anywhere from $2,000 to $3,000 per ounce. Either target would be significant for the precious metal.
A new price projection was offered by Myrmikan Capital founder Dan Oliver. He expects the Fed’s balance sheet to trigger a massive demand for gold as a safe haven asset in the months to come. So much even that a price target of $20,000 would become likely. That is an extremely bullish outlook. Gold at $10,000 could catapult Bitcoin’s price to $50,000 or more, after all.