It’s no secret that we at Money & Markets are bullish on gold.
We’ve talked about the precious metal quite a lot lately … and for good reason.
When the stock market is volatile like it is lately, investors flee for safe havens. Gold has a reputation as the ultimate safe haven because, unlike paper currency, it doesn’t lose value.
And with the economy in recession and a second round of coronavirus lockdowns looming, the demand for gold will keep rising.
Analysts, including Money & Markets Chief Investment Strategist Adam O’Dell, predict that gold will fly as high as $10,000 an ounce in the years ahead.
And he’s right.
The surge in the gold price won’t stop anytime soon. Here’s why.
The Gold Surge: Gold Climbs to $1,800
As I write this, the price of gold is more than $1,808 an ounce.
It’s coming off its fifth straight week of gains as the coronavirus continues to surge.
Gold Keeps Going Up
As you can see, gold has risen at a steady pace for the past five years. Since 2015, the average price of gold is up more than 42%.
In the previous bull market, from 2002 to 2011, gold shot up more than 400%.
And that’s when the market was flying high in the middle the longest bull market in history.
Based on that rate of growth, the price of gold could reach $5,000 in the next five years.
Now that the economy is struggling, and the stock market remains volatile, the price of gold will keep going up as demand increases.
The Gold Surge: Gold Is King
You can say that the economic recession is a big reason gold is rising, but that doesn’t hold water.
You see, while the economy was rising during the most recent bull market, gold prices were too.
Now we have a different situation: the fear of financial instability with paper money.
That fear will push more investors into safe-haven assets. Gold is the most well-known safe haven because it holds its value and liquidity.
Why Gold at $10,000 Is Likely
Investors could look to other havens, like real estate, especially with interest rates being as low as they are.
That’s especially true if those investors fear the U.S. dollar’s devaluation.
But history tells us gold remains the go-to for investors looking for safety amid stock market tension.
As market volatility continues, gold is where the smart investor will put their money to hedge against potential losses.
Gold is even a smart investment when economic times are good.
The bottom line is this: Nothing will stop this gold surge.
The yellow metal is safe and dependable because it holds its value and liquidity.
It’s worth the investment for hedging against market volatility.
Pro tip: Money & Markets’ Chief Investment Strategist Adam O’Dell has found a little-known gold investment that can give you up to nine times more profit than buying gold coins, exchange-traded funds or bullion. Check it out here.