Gold is a coveted precious metal that people all over the world have been fighting for since civilizations began. The value of gold is very high and backs up most currencies around the globe. Since it has always been such a rare commodity and the demand is so incredibly high it maintains a very high value. This article is going to look at the future of gold, and what the forecast for its value will be in the next ten years. Looking back at the past of gold will also help project what the future might look like for this highly sought-after commodity. An investment in gold has always been a great investment, and in the next five years with the shaky ground the world economy walks on may be an even better investment in the future.
How did Gold become so valuable?
First, it is necessary to look back at the history of gold and why it became such a desired commodity. It all began long ago with ancient humans finding a metal that was durable enough to meltdown and not corrode if exposed to water. A “transition” or “post-transition” metal which is made of the forty-nine elements in the center of the periodic table is the perfect option to have met those needs. A bunch of those elements like platinum, palladium, and rhodium was too rare to find and use for currency. Not to mention the melting point of platinum for example is over three thousand degrees Fahrenheit to meltdown. That was not a temperature that ancient humans had the capabilities to reach. Copper and iron would begin to rust over time when exposed to water. Add these things up and ancient humans decided to use gold and in some cases silver to create their currencies. The bottom line is that gold as an element is quite uninteresting and easy to work with. Things created out of gold will be in the same shape they were created one thousand years later. Putting all of that together and the ancient societies decided to use gold and silver as the currencies and place value in those currencies, which is why gold has always been of high value. It is also still a pretty rare element, as it must be found and mined.
So what will Gold be valued at in the next 5 and 10 years?
Another tough question to answer is the projected price of gold over a five and ten-year period. Gold predictions for the Next 5 Years are a little bit easier to project than going out ten years. In a five-year period, it is easier to predict the rise and fall of inflation, which has a dramatic impact on the prices of gold. Gold is priced per troy ounce for consumers. If you look back at prices going all the way back to 1950, prices, for the most part, stay somewhat stable in five-year periods. Gold seems to either spike really high at the beginning of a new decade or goes very low starting a new decade. A lot of this can be traced to new presidents taking office in the United States and also looking at economic down periods due to inflation. In the early 2000s, the price of gold fell all the way down into the 200 dollars ranges per troy ounce, all the way up to over 1900 dollars per troy ounce in the year 2011. The current price of gold sits around 1200 dollars. Gold prices since 2000 have seen the highest and lowest swings since 1950, and it all depends on how well the world is working together at any given time.
What does the future hold for Gold?
Gold Predictions for the Next 5 Years will most likely hover around the 1200 to 1300 hundred-dollar range. There could be some bigger dips and fluctuations but it will probably remain pretty stable at the price point. But as previously state Gold prices since 2000 show that volatilities in the world market can greatly alter the price of gold. Make no mistake about it though, because of its strong background as a very reliable currency and the continuous trends of being a highly valued currency, gold will always be a great investment all over the world. As ancient humans discovered long ago that gold was hard to find but very easy to work with. If gold is an option as an investment goes for it and the returns will always favorable. Good luck and buy GOLD!
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