Gold Price Predictions For Next 5 Years and 10 Years

In March 2022, gold prices hit an all-time high over over $2,000 per ounce which has made it an enticing investment opportunity for millions of individual investors around the world. The price of gold has been on a steady rise for the past 2.5 years after the pandemic crash as more and more investors switched away from traditional stock and turned to investing in precious metals. Precious metals have been a great investment opportunity since the beginning of humanity but in recent years its stability and potential rise has made it an even better investment opportunity.

Whether you are looking to invest in physical gold or invest in gold stocks such as ETFs or IRAs it is important to have an understanding of the gold price predictions for the next 5 years and 10 years. These gold price forecasts will help you improve your investment strategy.

Let’s learn about our gold price predictions for the next five years and next ten years as well as what might impact the price of gold in the future.

Gold Price Over The Past 5 Years

The chart below shows the overall increase in price of gold over the past 5 years. You can see how the price has raised from under $1,200 in 2017 to over $2,000 in the past year or two. The price of gold has increased over 66% in value over the past 5 years and these increases can be expect to continue to rise over the next five to 10 years in the future based on the current U.S investment market.

Below is a chart of the price of gold over the past 5 years, from 2017 to 2022 gold prices:

gold price chart over the past five years
Gold cost $1,200 an ounce in 2017 and now is valued at around $2,000 an ounce in 2022.

Gold Price Predictions For Next 5 Years

Gold price predictions and forecasts for the next 5 years can be made by looking at the previous 5 years as well as the current market conditions. Over the past five years we have seen an increase from $1,200 an ounce in 2017 to around $2,000 an ounce in 2022. We believe that gold prices will continue this trend and see a continued increase in price over the next 5 years. The exact spot price of gold in 2027 will be difficult to estimate but some current estimates are expect gold to reach around $3,200 an ounce in 5 years.

This trend is expected to see a roughly 10% increase in value each year over the next five years. This 10% year-over-year increase would bring the price of gold from $2,000 an ounce in 2022 to around $3,200 an ounce in 2027. We believe over the next 5 years that gold will increase in valuation by around $1,200 per ounce.

Gold Price Predictions For Next 10 Years

Predicting the price of gold over the next 10 years can be more difficult compared to short term forecasts as we don’t have as much understanding of the landscape of the gold market 10 years into the future. Things such as market supply and demand, inflation, or future wars can make it difficult to make long term price predictions for precious metals such as gold or silver. We believe over the next 10 years gold will continue to increase in valuation because of the steady increase of demand. We believe spot gold prices will be around $5,200 in the next 10 years.

We expect gold prices to continue on a 10% year-over-year increase as the demand of physical gold and gold stocks will continue. We predict the price of gold will increase from $2,000 in 2022 to around $5,200 in 2032.

Elements That Can Impact The Future Gold Price Forecast

Similar to any investment opportunity there are a handful of things that could positively or negatively impact the future gold price forecast. This can range from government regulations, buying demand, individual company issues, and more. Below are the different elements that can impact the price of gold in the future.

Market Supply and Demand

Market supply and demand will have the largest impact on nearly any market available. If more people want gold then the price of gold will rise with the new found demand. If less people want gold then the price of gold will typically drop with the decrease in demand. The gold market is known for having an increase in demand because of the popularity of gold jewelry but also the popularity of gold as an investment. The demand of gold is known to continue to rise as the population of humans rise over the years which is a good forecasting tool that the price of gold will continue to rise over the next 5 years to 10 years and beyond.

Government Regulation & Trading Regulation Changes

Government regulation and trading regulation are always a possibility when it comes to any investment opportunity. Most investors will favor a government which doesn’t intrude with the investments of the individual but this isn’t always the case. It is always possible that different countries or trading commissions around the world could experience a change that impacts the price of gold. This isn’t likely but is always a possibility when it comes to any investment type.

Inflation

Inflation can have a direct impact on gold as well as other finite assets such as real estate, precious metals, or art. Over the past few years, inflation has varied drastically because of the pandemic market but also because of other conflicts. The United States as well as other areas around Europe are have been experienced inflation rates as high at 7% to 10% over 2021 and 2022 which can have a severe impact on the price of gold. With certain areas of the market struggling in recent years it is possible that gold outperforms other assets over the next five years because of the fact that it is a stable precious metal and that it is a finite resource.

War or Other Conflict

War or other conflict can make it difficult to predict the future price of gold but also for other investment opportunities such as stocks and real estate. Since some types of gold can’t be traded on weekends it can be difficult to liquidate physical gold or gold stocks. War have been known to reduce the prize of stocks across the board as the market prepares for the worst but war in the past has typically been incredibly bullish for gold markets.

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Andrew Thompson

Andrew Thompson is the founder of Precious Metals Guy and has been investing in precious metals such as gold, silver, platinum, and more for over 20 years. He firmly believes that precious metal can be a great long term investment strategy for every investor or collector. Andrew has been featured or quoted in Investopedia, Business Insider, Forbes

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