If producers don't start mining gold from great depths, gold will soon run out and in the next 20 to 30 years gold prices will rise sharply. This allows us to make some important assumptions about what the price of gold per gram will do in the coming years. Efforts to replace the use of mercury with other methods will affect the fact that approximately 20% of the world's gold supply comes from artisanal gold miners, making processing gold more labor intensive and driving up gold price per gram. I use a combination of technical analysis and observation of market fundamentals to make my predictions about the gold price per gram.Meanwhile, projects to explore new gold deposits are expensive and can take 10 years or more to pay off.
In the short term, the negative impact of these trade tensions has only caused a modest response from the price of gold. It doesn't simplify things the fact that gold has performed well historically under a variety of different conditions and circumstances. In this baseline scenario, I would expect the price of gold to fall back from its highs as a result of increased risk appetite. Rising interest rates are generally negative for the price of gold, unless inflation rises even faster.
In addition to normal seasonality, gold prices have also had problems due to a major policy change by the Federal Reserve, the central bank of the United States. Obviously, any investment has advantages and disadvantages, but as a diversifying investment, gold is an excellent option for risk-conscious investors. Any forward-looking statement regarding the forecast of the price of gold should not be used or interpreted as investment advice.
