2. März 2024

Gold Prices Expected to Exceed $8,000 in the Next Decade

• Jan Nieuwenhuijs, a gold market analyst, predicted that gold prices might exceed $8,000 in the next decade due to the current Ukraine-Russia war and the global battle against inflation.
• His proposed price model suggests that each troy ounce of the metal might reach the $10,000 mark if central banks stockpile 51% of their reserves in gold.
• Central banks have been stockpiling gold in recent times, with a record amount of gold purchased in 2022.

Jan Nieuwenhuijs, a gold market analyst, has recently made a bold prediction that gold prices might exceed $8,000 during the next decade. This prediction is based on the current Ukraine-Russia war, as well as the global battle against inflation, which is causing a shift in the preference of central banks for foreign currencies to gold. Nieuwenhuijs has proposed a long-term price model that suggests that each troy ounce of the metal might potentially reach the $10,000 mark.

Nieuwenhuijs believes that central banks in aggregate have an unusual faith in foreign exchange, as gold’s percentage of total reserves accounted for only 16% in 2022, against a historical average of 59%. This is an indication that central banks are starting to lose confidence in the currencies issued by their peers. If these central banks stockpile 51% of their reserves in gold, Nieuwenhuijs predicts that the price of gold would reach $10,000 per troy ounce. Although Nieuwenhuijs believes that central banks will be the ones to spearhead this pivot to gold, he also suggests that private banks and other organizations will likely follow suit.

Central banks have been stockpiling gold in recent times, as evidenced by the record amount of gold purchased in 2022. This is a sign that central banks are beginning to recognize the potential of gold as a reliable store of value. Moreover, as the global economy continues to face uncertain times, the demand for gold is likely to grow as investors seek safe-haven assets.

Overall, the prediction made by Jan Nieuwenhuijs is indicative of the increasing demand for gold as an investment asset. With central banks and other entities beginning to stockpile gold, it is no surprise that the projected price of gold is likely to exceed $8,000 in the next decade. This further suggests that gold may become a more attractive option for investors who are looking for a long-term store of value.