Gold is the future, to hit $8,900/oz by 2030 - report

Incrementum AG sees a 45% probability of the gold price hit a new all-time high at $2,100 or higher as early as December 2021. The Liechtenstein-based investment boutique’s annual report entitled ‘In Gold We Trust‘ also argues in its future scenario for global gold trading that this precious metal will stand at $4,800 per oz by the end of the decade.
According to the report, considering the monetary climate change impacted by the pandemic and the prospect of inflation continuing for a longer time, the gold price may hit $8,900 per oz by 2030.
Despite price declines in the second half of the year, the gold price gained 14.3% in euro terms and 24.6% in US dollar terms in 2020. Since the beginning of 2021, price declines of under 1% have been recorded in both currencies.
The 2021 edition of the In Gold We Trust report is entitled ‘Monetary climate change’, where attention is drawn to a multi-layered paradigm shift triggered by the pandemic and the political reactions that followed.
According to the report, one of the most dramatic consequences that monetary climate change could bring is a renaissance of consumer price inflation. In addition, central banks are increasingly changing their monetary policy strategy. Although nominal interest rates have risen in recent months, they remain historically low and primarily negative in real terms.
According to World Gold Council, real interest rates in the US would have to rise to over 2.5% to have a significant long-term negative impact on the gold price. In an environment of negative real interest rates, gold’s average annualised performance is 19.3% in nominal terms and 11.4% in real terms, which is good news for gold.

Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough&Polished