Investors are advised to consider risk-reward balance and portfolio diversification.
Daan Struyven, co-head of global commodities research at Goldman Sachs, has projected that the price of gold per ounce might escalate to $4,000 by mid-2026. This forecast was shared during an interview with Veriten, an energy-focused strategy firm. Currently, the price of gold per ounce stands at $3,310. Such a prediction may significantly boost interest in gold across the markets.
ContentsGold and BitcoinThe Future of Gold Gold and Bitcoin
Struyven highlights that investors find similarities between gold and Bitcoin $107,743 under current market conditions. Both assets are recognized as storehouses of value due to their limited supply. He notes that nearly all gold has already been extracted, while Bitcoin’s supply channels are inherently constrained. Thus, these features offer investors reassurance against potential inflation triggered by an increase in the money supply.
“The supply is very limited. Most of the available gold has already been mined, and Bitcoin supply is limited by design. I believe this limited availability offers some assurance to investors concerned by potential aggressive increases in money supply and resulting inflation fears.”
Moreover, it is observed that Bitcoin has delivered higher returns than gold in the past several years. However, it is also noted that Bitcoin experiences higher levels of volatility and is susceptible to sudden price drops. Struyven further adds that Bitcoin shows a higher correlation with tech stocks.
The Future of Gold
According to the Goldman Sachs analyst, gold appears to be a more advantageous shield against stocks compared to Bitcoin. Struyven mentions that although both assets perform well when risk appetite is positive, gold is traditionally perceived as a more stable haven.
“Bitcoin and stocks generally perform well when there is a positive risk appetite.”
The traditional hedging nature of gold causes investors to diversify their portfolios with assets like gold amidst market fluctuations. In this context, Struyven’s assessments imply that gold could offer more effective protection against equity market risks in the current environment.
The possibility of gold reaching targeted levels within a year might allow BTC to achieve similar returns, even if temporarily. Although not always permanent, BTC has followed the gold price trend for years, occasionally outperforming it.
In present market conditions, investors in gold and Bitcoin are recommended to consider the risk-reward balance and portfolio diversification strategies. Experts emphasize the importance of considering personal financial goals and market fluctuations in investment decisions. The upcoming trend for gold will potentially be shaped by economic developments and global market dynamics.
You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.