Economist Forecasts Gold Prices Could Reach $8,000 in Upcoming Decade as Central Banks Move Away from Foreign Money – Bitcoin News

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An economist has asserted that gold could reach the $8,000 mark in the next decade, as central banks lose trust in foreign currency and shift their reserves to the metal due to the ongoing geopolitical tensions and global economic issues. The long-term price model proposed by the analyst suggests that the price of gold might even reach $10,000 per troy ounce.

Economist Predicts Gold Prices of $8,000

Jan Nieuwenhuijs, an economic analyst, has predicted that in the coming decade, the price of gold could exceed $8,000, as central banks move their reserve preferences due to the macroeconomic events and war. Nieuwenhuijs believes that the current Ukraine-Russia conflict, and the worldwide battle against inflation, will trigger a pivot in central bank reserves.

In his research, which takes into account the historical percentage of gold held by central banks, Nieuwenhuijs states:

Central banks have an unwavering faith in foreign exchange, with gold’s percentage of total reserves in 2022 being 16% against its historical average of 59%. However, central banks are gradually losing trust in the currency of their peers.

The model proposed by Nieuwenhuijs suggests that if central banks allocate 51% of their reserves to gold, then the price could reach $10,000 per troy ounce. He also highlighted that while central banks will be the main drivers of this shift, other organizations such as private banks would follow suit.

Central Bankers Show Rising Gold Demand

Central banks have been accumulating gold recently. In 2022, central banks purchased a record amount of gold, with reserves increasing by 1,136 tons, while reserve holdings in the form of fiat currency decreased by $950 billion. During Q3 2022 alone, close to 400 tons of gold were purchased by central banks, based on figures from the World Gold Council.

The World Gold Council reported on March 2 that gold demand from central banks remained strong in 2023, as 31 tons of the metal were purchased by central banks in January. Turkey was the largest buyer of gold, procuring 23 tons.

Other personalities have also warned about the potential rise of gold and other scarce assets, such as bitcoin. Robert Kiyosaki, the author of the best-selling book Rich Dad, Poor Dad, forecasted in February that gold could reach $5,000 by 2025, and also suggested that bitcoin could hit $500,000.

What do you think of the prediction of gold prices reaching $8,000 or even $10,000 in the next decade? Share your thoughts in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist situated in Venezuela. He explains that he came to the crypto game late, entering the cryptosphere when the price exploded in December 2017. With a computer engineering background, living in Venezuela, and being affected by the cryptocurrency boom at a social level, he brings a different point of view about crypto success and how it helps the unbanked and underserved.

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