Gold values have been on a teeter-totter in recent weeks. In early February, values fell to a monthly low of $4,403 per troy ounce. Just a few days earlier, gold hit a record high of $5,594. Bank J.P. Morgan Mobility Payments Solutions published a long-term forecast that values could hit upper records in 2030. This is a very surprising statement, in my opinion, given the situation.

It’s not just gold, silver has also experienced strong turbulence in recent weeks. In its case, the price has even fallen by 27% in one day. That is the steepest fall in history, which then deepened by a further 6%. But then the figures recovered and rose again. And so did gold. The market was given a semblance of hope that the problem was solved. But sharp falls and rises again are always suspicious, and usually investor interest then drops. So why should it be the other way around, as J.P. Morgan claims?

Long-term demand for gold?

One doesn’t have to understand the subject exactly twice to form an opinion: if gold values rise, fall and rise again, it doesn’t mean it is the best investment, because the falls have been sharp and are likely to return. That’s how I see it, a person who has never had much experience in this regard. But experts say gold will be in demand for the long term. Specifically, strategists believe that prices as high as $8,000 per troy ounce are possible by 2030.

Their report is causing a stir, and I’m glad I’m not the only one who thinks this is a crazy notion. “Gold is showing signs of exhaustion; traders should be cautious about further gains,” says a commentator on the Times of India website, for example. Analysts at British bank HSBC said that while bets on gold remain high, they may not increase significantly anymore as prices are simply overextended.

The market is very nervous. US monetary policy is increasing the pressure and precious metals are not doing well. ━━ The market is very nervous. US monetary policy is increasing the pressure and precious metals are not doing well. ( Source: Zlaťáky.cz /  Unsplash+ )

Gold will grow

Although some experts assume that there will be no interest in gold, a large number of them, on the other hand, agree with J.P. Morgan’s forecast. “The steeper declines in the precious metals market could have been caused by a stronger US dollar and technical market factors,” think experts at The Economic Times, for example.

Other big banks are also optimistic. For example, analysts at Goldman Sachs recently raised their estimates. According to them, it is possible that by the end of this year its price will be about $5,400 per ounce, mainly because of the growing demand from private investors. How the situation actually develops will have to wait and see. However, it is clear that anyone who invests will now be keeping a close eye on gold, either to avoid making a loss or to avoid missing out on a good investment.