Anna Golubova wrote an intresting article regarding the annual In Gold We Trust Report published by Incrementum AG.
The yellow metal could be looking at nearing the 140€ an gram price tag in a decade and that is a conservative estimate, according to the annual In Gold We Trust Report published by Incrementum AG.
The 14th annual report made some pretty bold predictions for the gold market, forecasting prices to, at least, approach 140€ an gram and possibly even push towards 260€ an gram by 2030, Incrementum AG fund managers and authors of the report Ronald-Peter Stoeferle and Mark Valek wrote on Wednesday.
The difference wherher it will be near 140€ or 260€ per gram will depend on the global dept sitsutaion and inflation.
“The proprietary valuation model shows a gold price of 140€ at the end of this decade, even with conservative calibration. Should money supply growth develop in a similar inflationary manner to that of the 1970s, a gold price of 260€ is conceivable by 2030,” the report stated.
The monetary systems in their current form all have an expiration date, the authors of the report said. “Due to the expected economic and monetary turbulences, the coming years will hold many challenges for investors,” Stoeferle and Valek wrote.
In last year’s report, the authors pointed out that gold was in the early stages of a new bull market. Gold’s trade action in 2019 confirmed this view as prices rose well above 38€/g and continued to rise to the current levels of around 50€/g. “Our gold price target of 52,6€/g for January 2021 is within reach,” the report said.
Longer-term, the report sees new all-time highs for gold as just a matter of time. “The question is not whether the gold price will reach a new all-time high, but how high this will be. The authors are convinced that gold will prove to be a profitable investment over the course of this decade and will provide stability and security in any portfolio,” the report said.
The COVID-19 outbreak has changed the market landscape quickly by accelerating an overdue recession, according to the report. “There is unanimity among governments and central banks on how to combat the economic consequences of the Covid-19 crisis: As many people as possible should be saved, whatever the cost … The debt is now threatening to get out of hand for good,” the report said.
Central banks are in a quandary when it comes to combating future inflation. Due to overindebtedness, it will not be possible to combat nascent inflation with substantial interest rate increases,” Stoeferle and Valek said. Gold could also potentially overtake the role that government bonds play in a portfolio as unsustained debt levels bring into question many government bonds out there.
To read the original article:
https://www.kitco.com/news/2020-05-27/Gold-to-see-5-000-9-000-price-levels-in-10-years-In-Gold-We-Trust-Report.html
