In the next 30 years, John Reade expects gold to remain upheld for the most part
According to a recent analysis by the World Gold Council, gold should stay secure in its role as a sound investment for the next 30 years, reports Kitco. While the market has ample potential for significant returns in the short-term, many buyers find themselves more concerned with a longer outlook, one that involves planning several years down the line.
While some of the most devoted gold bugs would hesitate to look into the metal’s future as far as three decades from now, WGC’s head of market research John Reade and his team did just that. And as a result, their analysis showed that no other asset will hold its ground as well as gold over the upcoming stretch.
In the period leading up to 2048, the article states that Reade expects the global market structure to remain upheld for the most part, with gold as a prominent part of it. As decades pass, the metal will reaffirm itself as the premium portfolio diversificator by continuing to offer investors a sensible way of hedging their bets.
Reade lists advancements in the field of gold trade as a primary source of demand moving forward. In particular, the analyst is bullish on 21st-century developments in the gold market, which include the creation of several gold-buying platforms. According to the article, a notable feature shared by these platforms is that they are fully backed by physical gold, suggesting that even the most digitalized investors still prefer to pour their money into something tangible.
Reade also mentioned that apps built for gold storage are predictably growing in popularity, given that they allow people in less developed regions to safely store and access gold with a few clicks.
Despite this digital revolution, Reade noted that the pure physical gold market will remain as strong as ever. China and India’s economic boom will play a large role in this, as the two gold-hungry nations should continue setting demand statistics moving forward.
According to the article, the analyst finds China’s economic developments particularly noteworthy and believes the Asian nation stands a chance of surpassing the U.S. However, he ultimately feels that a lack of transparency will subdue the yuan’s chances of becoming a reserve currency and expects the dollar to maintain its position.
As with any market, gold is likely to experience its ups and downs over the next 30 years. But Reade feels that the ever-diminishing mine supply is a major clue in regards to gold’s future movements and predicts this factor will exert enough influence on market sentiment.
“I don’t think people will be disappointed in the gold market 30 years from now,” Reade explained. “You [can’t] take something that has 6,000 years of value and replace it with something new.”