Gold market analyst Jan Nieuwenhuis has predicted a new multi-year bull market for gold. Depending on a variety of factors, including a decline in gold's share of global foreign exchange reserves and the size of the stock market, gold prices could rise to $8,000 an ounce.
Gold analysts expect gold prices to accelerate significantly in coming years
Jan Nieuwenhuis, an analyst specializing in the global gold market, has predicted the future gold market for multiple years based on gold prices. In a recent article, Nieuwenhuis said that a combination of gold-favoring factors and geopolitical conditions could accelerate gold's rally, pushing prices to $8,000 an ounce over the next decade. It is explained that there is.
Experts say the recent price increase has pushed gold out of its multi-year price equilibrium, where it has remained at roughly the same level since 2012. One of his long-term indicators that Nieuwenhuis uses is the decline in gold's share of global financial assets. In 1980 he was estimated at more than 6%, now it reaches only 3%.
The level of gold, which still supports the US dollar, the world's key currency, is near an all-time low. Mr Neuwenhaus said:
The last two declines occurred in 1971 and 2000, followed by several years of gold bull markets. So a new bull market is probably just around the corner.
The expert also said that although gold's share of global reserves is low compared to previous levels, it has increased due to declining confidence in the dollar due to two factors: the freezing of Russian assets in the United States and rising prices. Explaining.. The debt coincided with failed attempts by the Federal Reserve to rein in inflation. This has prompted central banks such as the People's Bank of China to purchase gold at record levels.
Finally, the size of the stock market relative to the size of the U.S. economy has reached an all-time high. Neuwenhaus explains that a stock bubble on the verge of bursting will be followed by monetary easing to re-stimulate the economy. “This leads to a bubble and a vicious cycle of increasingly easy money as the value of the currency falls further and the price of gold rises,” he concluded.