Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
What’s the Story?
Gold prices consistently break new records as various economic and geopolitical factors push investors to safe-haven assets. The yellow metal has decoupled from traditional markers such as US real yields and interest rate cuts. Instead, gold’s rise is spurred by widespread economic uncertainty over stubborn inflation, hot conflicts, rising national debt, and high central bank demand. As long as these fiscal threats remain, gold is expected to continue booming.
The Numbers
- Gold prices currently sit at $2,400/oz, near record highs.
- J.P. Morgan Research projects gold to hit $2,500/oz by the end of 2024 and $2,600/oz by 2025.
- Central banks bought 1,037 tonnes of gold in 2023.
- China has been binging on gold for 18 straight months.
- J.P. Morgan estimates central bank gold demand will reach 850 tonnes in 2024.
Why Investors Should Care
With gold sitting near all-time highs, many investors wonder if it’s too late to stock up. According to J.P. Morgan’s price forecast, gold’s rally has a lot of runway left, suggesting it’s not too late for eager investors to join the gold rush. These impressive forecasts also suggest worsening economic conditions which should encourage investors to consider their portfolios’ resistance, risk management, and diversification.
Market Impact
Currently, gold prices sit confidently above $2,400, marking more than a 22% gain within a year. Thus far in 2024, the precious metal has kept pace with the S&P 500 despite the stock market’s record-setting year. Gold demand remains high for central banks and retail investors.
Expert Insights
Even professionals are stunned by gold’s impressive rise. According to Gregory Shearer, J.P. Morgan’s Head of Base and Precious Metals Strategy “Gold’s resurgence has come earlier…and the rally has been much sharper than expected.”
Rampant economic problems provide plenty of fuel to power gold’s future growth. Shearer explains, “Amid fraying geopolitics, increased sanctioning, and de-dollarization, [J.P. Morgan] observe[s] an increased appetite to buy real assets including gold.”
Shearer suggests that gold and silver have the most bullish outlook out of all precious metals, although cautions that “timing an entry will continue to be critical.”
What’s Behind the News?
As gold prices enter uncharted territory and economic pressure mounts, people are increasingly vigilant about their precious metals investments. There’s a global transition to physical safe-haven assets as central banks and everyday people buckle down for more economic turbulence. J.P. Morgan – the largest bank in the US – leads a chorus of financial institutions calling for higher gold prices and encouraging people to consider diversification.
Future Outlook
J.P. Morgan anticipates gold’s bull run to continue at least through 2025. The banking giant isn’t alone in its perspective as many experts have had to raise gold price predictions in the face of the yellow metal’s upward trend. For example, Bank of America and CitiBank forecast gold to reach $3,000/oz. There’s no end in sight for the economic problems plaguing investors, suggesting the trend of gold buying will carry on.
Actionable Takeaways
It’s NOT Too Late
Contrary to popular belief, it’s not too late to buy gold despite record-setting prices. Precious metals experts predict domestic and global economic pressures will continue raising gold demand and prices.
Look into Physical Gold
Physical gold is receiving renewed interest among central banks and retail investors due to its inherent value, tangible nature, and economic protection.
Speak With an Advisor
Investing in gold isn’t a one-size-fits-all strategy. It needs to be aligned with your specific goals for the most effective returns.
Thinking About Investing in Gold?
The precious metals advisors at Scottsdale Bullion & Coin would be happy to answer your questions. Contact us by calling toll-free at 1-888-812-9892 or using our live chat function.