For an asset that enjoys stable performance for the past century, it is only right to expect nothing short of the same for the next decade. And If you are looking to invest in gold right now, you surely will be interested to know about gold prices in the next 5 years. But as an investor when it comes to analyzing the future performance of an asset you want to look at how it has performed in the past.
The economic situation brought about by the covid-19 pandemic has left many investors struggling to keep up with the declining state of the fiat currency. And for the savviest of investors, being able to diversify into valuable assets such as precious metals seem like the best option right now.
Thinking seriously about investing in gold? You surely want to do so right now as there is so much to look forward to given that experts predict the price of gold in the future could double its present value by 2025.
Looking at Gold Performance in the Last Decade
Since we need to retrace our steps to see how the metal has performed in the past to judge if it will maintain the same trend in the coming years, it makes sense that we go as far back as 10 years to see if there are any prospects for the future of the asset. 2019 saw the yellow metal enjoy an increase in value since 2010 and this is taking into account the data obtained from the World Gold Council. At the end of December 2009, the metal sold for $1209.20 per troy ounce, and by December 2019 was valued at $1514.80.
Taking into account the percentage growth a 39.30% growth in the 10 years seems to be something that makes it even more attractive to investors who are predicting up to 50% growth as we progress into 2030. This is taking into account that the dwindling state of the stock market and the fact that the pandemic is still tearing through the economy can only predict more growth for precious metals.
When you factor in that the financial market has also experienced major setbacks such as the stock market crash of 2008 and which surprising for many was part of what led to the increase in performance of the metal during this period only gives the assurance that it could mean progress for the next 5 years as well. But is gold only good for when there is financial uncertainty? The answer is no. You can expect that you will get good value for your precious metals in any economy should you decide to purchase and keep them for the long term.
How Gold Will Perform in the Next 5 Years
There are mixed reactions among experts when asked the question of how gold will perform in the next 5 years. The majority of pundits predict that the asset will experience an increase in value almost doubling the price of $1780 at the end of December 2021 by 2026. But there is a lot to contend with when it comes to agreeing with this prediction. While you can expect that there will be a growing demand for metal in the manufacturing sector, there are no guarantees about which direction the price will go.
But all signs point to the fact that it won’t lose its value drastically, and if it will experience any growth, it should be in the neighborhood of a 50% increase at most from the current price at the end of the next 5 years. One thing is clear, an uncertain market will lead to pressure on the price of assets and if there is a low demand for gold as things unravel, you can expect that there won’t be much increase in the price.
The present circumstance caused by the pandemic which saw more investors look in the direction of gold could simmer down in the next 5 years leaving the asset hovering around a 25 to 30% increase in value. But for the savvy investor looking to cash in on a safe investment opportunity, there is no denying that gold could be a viable investment to consider to put away money for the future. This link https://www.investopedia.com/articles/00/082100.asphas tips to help you plan for a long-term investment.
Should you Invest in Gold Today?
Now that you have gotten a clearer picture of how gold has performed in the last decade and what experts predict for the next 5 years, you may be wondering if it is safe to invest in the metal right now. There is no denying that the choice is yours when it comes to the best investment to consider and if you want an expert opinion, you surely have a high odds of success when you choose to invest in gold for the long term. Not sure if it is a good idea to invest in gold today? You will find reasons why you want to below.
Own Valuable Assets
The value of your assets will surely depend on the quality of investments therein, and you can expect that when you buy gold coins and bars, you will be owing some of the best treasures in the world. This is putting it mildly as since the earliest time, gold has been an asset that boasts a high value and you can only expect that this won’t change for the next 100 years. Choosing to buy precious metals today could be the best decision you can make this year as you won’t regret it.
Increase your Investment Portfolio
It will also be great as you get to increase your investment portfolio when you choose to buy precious metals. This will surely spell well for you as you can be sure you won’t be putting all your eggs in one basket when you diversify your investment. If you already own stocks and real estate, it could be a wise idea to consider precious metals to spread out your investment.
Protect Against Inflation
Another good thing about owning gold is that it offers a good hedge against inflation which could help you in times when the fiat currency is nothing to write home about as we experience right now with the US dollar.
When there is inflation, the prices of commodities increase due to the low performance of the currency and this will mean that gold prices will increase. And this could be the right time to make profits if you already own the asset. But for the investor who is in it for the long run can be sure that they won’t have anything to worry about when it comes to how their asset is performing.
How you can Invest in Gold Today
The choice is up to you when deciding how to invest in gold. The common one is to purchase the coins and bars from registered dealers and hold them. This could be preferred if you want to own an asset you can feel and touch. It is also possible to set up an individual retirement account that is funded by precious metals.
And you can set up a gold IRA in minutes as soon as you find a reputable company to deal with.
There are specific gold coins and bars that are acceptable for transactions by most banks and companies that operate an IRA or sell precious metals. So you want to make sure that you find out all you need to know about doing business with the company to enable you to plan for your investment. It will be in your best interest to research the best companies to invest in gold so you can be sure that you are working with a legitimate outfit. You can check this page for tips on how to set up a gold IRA.
Final Note
The performance of gold over the years only gives the assurance that an investment in the metal right now is a safe one. However, there are no guarantees when it comes to predicting the exact price in the next 5 years. But one thing is certain, there is a high chance that you will be making profits no matter how small your investment is in the next 5 years if you choose to buy the metal today.
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