Amidst economic uncertainties and volatile markets, investors often seek refuge in precious metals, considering them as a safe haven for preserving wealth and hedging against inflation, buying gold and silver.
However, navigating the intricacies of precious metal investments can be tricky. In this article, we look into where experts believe precious metal prices could be headed.
Commodity Prices Today
Gold prices have been in somewhat of a range over the last week or so. The yellow metal is currently trading around the 2320 mark after rising around 0.5% so far on Thursday.
Meanwhile, after pulling back in late April, silver has begun to climb once again, currently trading around the $27.8105 mark after a 1.7% gain so far in Thursday’s session.
Gold Price Forecast 2024
According to analysts at TD Securities, the gold “market is likely to wait for a catalyst for additional upside, whereas the downside does appear to be capped by the limited participation from money managers.”
Meanwhile, Goldman Sachs said in a recent note that they see more upside for the safe haven metal, stating it could exceed $3,000.
Using their model, Goldman strategists see the potential for even higher gold prices under certain conditions. Specifically, they anticipate that if US financial sanctions intensify at a pace similar to that since 2021, gold prices could rise by an additional 16% to $3,130 per troy ounce “on the back of additional central bank buying of 7Mtoz annually,” they wrote.
“Such an increase in our US financial sanctions index would be akin to the hypothetical addition of roughly two or more US financial sanctions on China or six financial sanctions on India,” the bank’s analysts said.
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“To be clear, the geopolitical, fiscal, and financial outlooks, and their exact impact on central bank gold demand and gold prices are all highly uncertain. That said, our exercise underscores the hedging value of gold against adverse geopolitical or financial scenarios, in which equity-bond portfolios would likely suffer,” added Goldman.
Precious Metal Investment: Interview with Genesis Gold Group CEO
Speaking to Investing.com, the CEO of Genesis Gold Group, Jonathan Rose, noted the recent success of Costco’s sale of gold and silver and said he believes that with gold recently trading at all-time highs, many retail investors wonder if they missed the boat on precious metals this time around.
“Many more are left scratching their heads on how to even purchase gold,” Rose stated, noting that gold has been a safe haven during times of economic uncertainty, “like we are in now.”
He believes that Costco (NASDAQ:)’s decision to sell precious metals signifies a broader trend in the investment landscape, indicating an even wider acceptance of the perceived value or stability of gold and silver.
When it comes to investing overall, Rose believes that precious metals offer distinct advantages over assets such as ETFs, bonds, and mutual funds.
“Firstly, gold and silver are tangible assets with intrinsic value, serving as a hedge against inflation and currency devaluation,” he explains. “Unlike ETFs, which represent ownership in a collection of intangible assets (like bonds and mutual funds) whose value are completely dependent on market performance. Also the price of gold and silver moves independently of other financial markets, which adds to its value as a safe haven from economic unrest.”
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Providing some insight on retirement and the prediction that social security benefits will become insolvent by 2033, Rose agrees, stating that preparation for retirement is now “even more important.”
“For folks aiming to retire 10+ years from now, it would be unwise to rely on having SS to fall back on for,” comments Rose. “Instead, focus on growing your nest egg and protecting your purchasing power over the next 10 years so that you can retire with peace of mind. Gold & Silver certainly have a place in that plan.”
The Genesis Gold CEO also highlights the advantages of a gold IRA for investors, noting it allows people to own physical assets like gold and silver with a tax/penalty-free rollover.
He concludes, “This allows for flexibility without triggering a tax implication, meaning that you can move your money to gold and silver while maintaining the tax advantages of an IRA.”