Q: Hello, I never thought I would contemplate buying gold because I find difficult to figure out where it is headed in the future, but here I am. Gold has been going up a lot in the past year and I am wondering, what do you think would be the economic or political circumstances or scenarios under which gold would lose value in a substantial manner, say, 20%, by the end of 2025? Thanks
5i Research Answer:
Gold has outperformed stocks for some time. A decline in gold would likely be due to central bank selling (not so likely), or much higher interest rates or a much higher US dollar. Rates are likely the biggest influence.