The price of gold just hit an all-time high of $1,968 per ounce.
Many of the world’s top investment banks, such as Goldman Sachs, have revised their 12-month forecasts in light of gold’s recent surge. In fact, Goldman predicts the yellow metal to hit $2,300 in the next year.
Bank of America is even more bullish, forecasting a high ceiling of $3,000 in the next 12 months.
Gold prices have soared amid worldwide geopolitical tensions. In July, China enacted new security legislation in Hong Kong, sparking social unrest. Tensions boiled between Washington and Beijing as the two countries cast blame on one another for causing the latest coronavirus surge. Consulates in both countries have closed as a result.
Rising tensions between the world’s two superpowers have left many market-watchers bearish in July, fearing increased trade barriers and disrupted supply chains. Seeking stability, many investors have moved their wealth into precious metals.
The global coronavirus pandemic is worsening, and federal governments are pumping hundreds of billions of dollars into their monetary systems to stay afloat amid widespread shutdowns. Systemic risk in the financial system has reached a fever pitch.
There’s no denying that the U.S. government is about to be straddled with more sovereign debt than ever before in history. How the country will climb out of the mess is anyone’s guess.
In today’s economic climate, you cannot afford to concentrate your portfolio in traditional assets. As the price of gold continues to climb, now is the time to invest in precious metals. To get started, consider checking out our review of the world’s most respected gold IRA companies.