The price of gold has more than doubled since the start of 2024. The precious metal was trading around $2,000 per ounce at the beginning of last year, recently crossing the $4,000 mark before surging to above $4,300 per ounce—a level that seemed distant just months ago.
While the price has moderated somewhat since then, price upticks are likely to continue, at least in the near future, as today’s economic climate makes gold a smart bet for many investors. Not only has there been aggressive buying by central banks, but issues like high inflation and currency instability are also driving individual investors to hedge and diversify with gold.
The next price milestone investors are watching is $5,000 per ounce, as gold’s recent momentum makes that target look achievable. The question remains: what needs to happen economically to get it there, and how soon might that occur?
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### When Could Gold Hit $5,000 per Ounce?
According to experts, the timeline for gold reaching $5,000 varies but remains optimistic.
**Brandon Aversano**, CEO of precious metals buyer The Alloy Market, estimates gold could hit $5,000 within 18 to 24 months. “It’s not a matter of if, it’s when,” Aversano says, noting that key drivers are already in motion. This timeline assumes current economic trends continue at their present pace. However, if economic conditions worsen quickly, the move could accelerate.
**Ben Nadelstein**, head of content at gold yield marketplace Monetary Metals, believes gold could reach $5,000 within 12 months, “if we see negative real yields, a clear policy shift toward easier financial conditions, a weaker dollar, firm central bank demand and sustained geopolitical risk.”
Recent price action supports even more aggressive timelines. Just a month ago, gold was trading below $3,700 per ounce; today it’s over $4,000.
“Gold is only about 20% off from reaching $5,000, and gold just moved almost 30% in three months,” says **Brett Elliott**, director of marketing at American Precious Metals Exchange (APMEX). Given this momentum, Elliott suggests all bets are off.
The path gold takes to $5,000 per ounce will ultimately depend on the economic catalysts and how strongly they influence markets.
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### What Needs to Happen for Gold to Reach $5,000 per Ounce?
Experts point to several economic factors that could push gold prices to the $5,000 mark:
#### 1. Federal Reserve Policy Shifts
The Fed has already started cutting rates and winding down quantitative tightening. “If the Fed signals it’s done fighting inflation while debt keeps climbing, gold will move sharply higher,” says Aversano.
#### 2. Geopolitical Instability
Wars, trade disputes, or financial crises drive investors toward safe-haven assets like gold. As Aversano notes, gold is already near record highs without any major crisis. “It wouldn’t take much more pressure to push it over the edge.”
#### 3. Declining Confidence in Fiat Currency
With deficits around 6% and rising debt, investors are questioning whether traditional currencies can hold their value. “The government is only going to make matters worse as they continue to debase the currency, which adds to gold’s floor on a fundamental level,” Elliott explains.
#### 4. Financial System Instability
Bank failures or financial scares increase demand for high-quality collateral like gold. Nadelstein suggests that renewed liquidity support for weak financial institutions or credible stability concerns could be major catalysts.
#### 5. Inflation Tolerance
If policymakers become more accepting of elevated inflation, it signals a shift toward easier financial conditions, which historically benefits gold prices, according to Nadelstein.
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### Could Investing in Alternatives Like Silver Pay Off Right Now?
For investors who feel priced out of gold at current levels, alternative metals like silver offer several advantages:
– **Lower Entry Point:** Silver provides similar inflation protection as gold but at a lower cost, says Aversano.
– **Dual Demand Sources:** “Silver can help diversify a portfolio because it has both monetary and industrial demand,” notes Nadelstein. This can make it more resilient across different economic conditions.
– **Bigger Percentage Gains:** “Silver is still undervalued relative to gold and tends to move later in the cycle,” Aversano explains. “Historically, its upside percentage moves are bigger once the momentum starts.”
– **Supply Constraints:** Elliott points to six years of supply deficits, high lease rates, and regional inventory dislocations as factors supporting potential higher silver prices.
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### The Bottom Line
Gold may reach $5,000 in the next year, but it could also take longer. Investors have multiple ways to gain exposure now if they want to capitalize on the possibility of future gold price increases.
Physical gold bars and coins, gold exchange-traded funds (ETFs), and gold mining stocks are all viable options. However, it’s important to weigh the benefits and downsides of each before investing.
“Each form of investment has its own properties, advantages, and risks that make it suitable for different investment goals,” emphasizes Brett Elliott.
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**Explore the benefits of gold investing and consider adding the precious metal to your portfolio today to diversify and protect your assets in an uncertain economic environment.**
https://www.cbsnews.com/news/heres-when-the-price-of-gold-could-hit-5000-per-ounce-according-to-experts/
