Technical Breakout and Soaring Demand Make Gold a Sure Bet Amid Rising Inflation and Geopolitical Risks
As has been the case throughout history, uncertainty in the markets has almost always led to investors pouring money into gold as a safe haven.
With the war in Ukraine heating up following last week’s Russian invasion and with inflation fears already at a multi-decade high, the resulting surge in uncertainty has global financial markets experiencing a sharp rise in volatility, sending investors scurrying for safety under the shiny yellow metal.
Currently, that seems to be precisely what’s happening as the recent surge in buying has seen Gold experience a massive bull pennant breakout on its 5-year technical chart. Typically, the longer a technical chart pattern takes to materialize before breaking out, the more it can be relied upon as a trend following continuation signal. Gold’s long-term breakout confirmation, combined with the fact that the current market uncertainty could be here for a while, has created a scenario where investors could see Gold prices skyrocket to over USD $3,000 by next year.
In fact, the experts at PrimeXBT have provided the following multi-year forecast on the price of gold:
- 2022: $3,000 (+54.54%)
- 2023: $3,449 (+77.67%)
- 2024: $4,721 (+143.2%)
- 2025: $5,012 (+158.19%)
- 2030: $8,732 (+349.82%)
* Above gold prices are in USD. Implied potential % gain based on the current 01/03/2022 gold price of $1,941.20.
The potential gains listed above make owning gold that much more attractive for an asset that’s always been viewed as a safe-haven store of value.
For those new to gold investing, there are essentially a few ways you can go about adding gold to your portfolio, which we’ll outline for you below.
Physical Gold Bullion
Trusted websites such as Kito and Silver Gold Bull are great options for buying and selling physical gold bullion.
Gold ETFs
Gold ETFs are a more convenient way to own gold than physical bullion, as investors don’t have to worry about storing the gold, and ETFs offer excellent liquidity. For those interested in learning more about Gold ETFs, check out SPDR Gold Shares ETF (NYSE Arca: GLD), SPDR Gold Minishares ETF (NYSE Arca: GLDM) and GraniteShares Gold Trust (NYSE Arca: BAR).
Gold Futures
More experienced investors who don’t wish to risk as much capital could consider Gold (XAUUSD) futures options or options on a gold ETF.
Gold Mining Stocks
Gold mining stocks are another way investors can invest in gold. However, investors should be aware that just because gold prices are on the rise doesn’t necessarily mean all gold mining stocks will follow suit. While gold prices are a huge factor in the share prices of mining stocks, the fact is, the success of an individual mining company will also depend on that company’s individual operating performance and how well that company generates profits and invests its capital. Some top gold mining stocks are Barrick Gold (NYSE: B) (TSX: ABX), Newmont Corporation (NYSE: NEM) (TSX: NGT), and Kinross Gold (NYSE: KGC).
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Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
