Jan Nieuwenhuijs, a gold market analyst, predicted that gold may exceed $8,000 prices within the next decade, as the current Ukrainian-Russian war, and the global battle against inflation, has shifted central banks’ preference for foreign currencies to gold. The proposed long-term price model shows that every troy ounce of the metal could touch the $10,000 mark.
An analyst makes a $8,000 gold price portfolio
Jan Nieuwenhuijs, a gold market researcher, predicted that the price of gold could exceed $8,000 within the next decade, as central banks shift their reserve preferences due to macroeconomic factors and war. Nieuwenhuijs believes that the current conflict between Ukraine and Russia, and the global war against inflation, will lead to a change in the composition of reserves.
As part of its analysis, which takes into account the historical proportion of gold held by central banks as a key metric, Nieuwenhuijs States:
Central banks have an extraordinary faith in foreign currencies, with gold accounting for 16% of total reserves in 2022, against a historical average of 59%. However, these central banks are starting to lose confidence in the currencies issued by their peers.
According to his model, if central banks stockpiled 51% of their gold reserves, the price of gold would reach $10,000 an ounce. However, Nieuwenhuijs makes it clear that while central banks will be driving this pivot towards gold, private banks and other organizations will also follow this trend.
Central banks are showing strong demand for gold
Central banks have stockpiled gold lately. In 2022, central banks bought a record amount of gold, with reserves rising by 1,136 tons, while reserves held in the form of foreign currencies decreased by $950 billion. In the third quarter of 2022 alone, nearly 400 tons of gold were purchased by central banks, according to reports from the World Gold Council.
On March 2, the World Gold Council reported that central bank gold demand continued to be strong in 2023, with central banks adding 31 tons of the precious metal in January. Turkey was the biggest buyer of gold, with 23 tons.
Other figures have also warned about the rise of gold and other scarce assets, such as bitcoin. Robert Kiyosaki, author of the best-selling book Rich Dad, Poor Dad, predicted in February that gold would reach $5,000 by 2025, which also points to the potential for bitcoin to reach $500,000.
How do you expect gold prices to reach $8,000 or even $10,000 in the next decade? Tell us in the comments section below.
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