Fortune: Gold Could Soar 80% to $6,000 if There's Even a Minuscule Shift Away from US Assets, Analysts Say
Article by Jason Ma in Fortune
The price of gold has been on a tear in recent years and could reach astronomical heights by the end of the decade if foreign investors shift away slightly from the U.S., according to analysts at JPMorgan.
In a note, they laid out a scenario where gold would hit $6,000 per ounce by 2029, an 80% jump from the current price of about $3,300.
If just 0.5% of foreign-held U.S. assets are reallocated to gold, that would result in 18% annual returns and eventually send prices to $6,000, JPMorgan estimated.
That’s because the supply of gold isn’t expanding by much, meaning that a relatively minuscule boost in demand can create a big price swing.
“While hypothetical, this scenario illustrates why we remain structurally bullish gold and think prices have further to run,” analysts wrote.
Gold has jumped more than 20% so far this year, and ......