The price of gold is rising - when will it exceed $ 2 an ounce again?

Gold exchange rate recently recorded the highest values ​​in 4 months. The first quarter of 2021 was another hot year for investment gold, according to the World Gold Council, with retail sales up 36 percent year-on-year, from 250,5 to 339,5 tonnes. The largest market in the world, China, grew by 133 percent. In the US, on the other hand, 77 percent more gold was sold than in the same period last year, and on the Old Continent, sales amounted to 65 tons, which is a result well above the average for the last 5 years. What will happen next?  Some analysts forecast that by 2030 the price of gold could even exceed $ 8. What was happening in Poland? Records were set - Mennica Skarbowa, the largest investment gold dealer in Poland, sold 000 kg of gold in the first three months of this year, compared to 840 kg in the same period last year.  

Forecast for the gold market

According to the report "In Gold we Trust 2021" in the next 9 years gold it can go up by more than 200 percent. It is all due to, or perhaps thanks to, the progressive budgetary nonchalance of many countries, the actions of central banks, the increasing correlation between fiscal and monetary policies, as well as growing tensions between the West and the East. Analysts forecast that an ounce of gold in 2030 could cost $ 4, although a scenario where the price would exceed $ 800 is equally possible. It all depends on inflation, which is already driving the demand for the royal metal.

- The last quarter in Poland was record-breaking - we observed the historical turnover in March, when the gold exchange rate was correcting - this is the specificity of domestic investors who buy gold when its price leaves a temporary low. It is worth noting that in the first three months of this year, we sold as much gold as in the entire 2019, and 59% more than in the same period last year. The most popular among our customers was the Australian Kangaroo - its sales increased by 179 percent year on year. All because of the availability of a product that is actually on sale all the time. In the case of ounce bars, sales increased by 63 percent compared to the previous year. The factor stimulating the increased interest in coins are their prices - they have not changed as much as the prices of bars, the producers of which, taking advantage of the buyers' interest, increased their margins. It all shows how much the market is shaped by demand. The price has been rising slightly recently, but in my opinion, this year it will again exceed the ceiling of USD 2000 per ounce. - concludes Jarosław Żołędowski, President of the Treasury Mint. 

The gold exchange rate, which is currently in a sideways trend, recently recorded the highest values ​​in 4 months. Reason? Most of the factors that determined the historic highs that we witnessed just 9 months ago are still present. Inflationary pressures and the weakening dollar keep investors awake at night. The political situation on the international arena - the growing friction between Belarus and the rest of the world or the next installment of the Israeli-Pakistani conflict - is also conducive to further increases in the royal metal. Currently, just a spark is enough to push the price of gold to the next highs.