Here is gold price forecast 2020-2025.Gold price movement throughout 2020 is a volatile asset, even it has managed to set new highs this year. Where the price of gold reached $ 20,000 per troy once. This is mainly as a result of one of the global conditions that began at the end of 2019 until now towards the end of 2020. Where the Coronavirus case that has hit the world has damaged all aspects of life.
However, after reaching its highest peak, the price of gold continued with fluctuations where the price fell again in 1857, which then became a support point for the movement of gold prices throughout 2020.
This is one of the interesting facts with high volatility into the question of whether the gold price will continue to increase or decrease. Given that gold is a precious metal that has high intrinsic value, and is a piece of jewelry that has been a tradition since ancient times.
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- 1 Why buy gold?
- 2 The advantages and disadvantages of buying gold
- 3 Is it good to buy gold for investment?
- 4 How to predict the price of gold
- 5 When should to buy Gold?
- 6 Gold price forecast 2020 – 2025
- 7 Gold price short term analysis
- 8 Where to trading gold?
- 9 Final Thought
Why buy gold?
For some people, gold is very valuable jewelry, even celebrities will be more confident in public by wearing gold jewelry in the fashion accessories he wears.
Various reasons underlie someone buying gold which will also depend on the main purpose when he bought gold. If someone buys gold just for jewelry as a complement to fashion accessories. Then usually he will buy gold with a carat content below 20 carats. In contrast to buying gold for investment purposes, you will usually buy gold with a carat content of up to 24 carats as the highest level of carats.
Here the following are some of the reasons why you should buy gold:
Gold Is Money
In ancient times, gold has actually become a medium for exchanging goods and services, where the function of money.
In fact, the role of gold when compared to flat currencies is superior where the price of gold tends to increase, which means it is resistant to inflation. One reason is that the amount of gold in the world is limited, although until now there is still a lot of gold mining, because it may be a common expression that the amount of gold available in this world is limited.
This is different from the character of flat money where it will grow with inflation caused by the more money supply, it is vulnerable to inflation from the value of the currency.
Gold Is A Tangible Asset
If you buy gold bullion, then you physically have the gold in your hands. What is certain is that this is different from other investment products such as stocks or forex.
The added value of this gold is that it is not damaged by fire, water, or time, it will remain the same intrinsic value does not change even if you store it for twenty years.
You also don’t need any special care as long as you place it in a safe and protected place. And also by keeping gold, it will be safe from hacker attacks because it is a physical form in the real world, but the main enemy is only thieves who might break into your house.
Gold Has No Risk to Other Parties
Unlike futures contract trading, which has a high risk of buying gold, you will get a purchase certificate from the official shop where you bought the gold.
There are no special contracts and you can sell gold anytime you want, maybe you try to buy gold when the price is down and resell it when the price is high.
Gold Can Be Private and Confidential
If you hide your gold, maybe you don’t have to pay a certain amount of tax, but it depends on government regulations, because maybe when you buy gold it includes value-added tax. But if you have a large amount of gold, it might be better to give alms to the poor around your house to just clean up your property.
Easy buying and selling process
Gold can be an ideal item because it is easy to buy and sell, even wherever many gold shops are ready to buy your gold and you immediately get your money right away. Unlike when you sell stocks, for example, it still takes a few days to complete the process.
Gold is Easy to Store
When compared to gold, it will be more difficult to place your cash in a full suitcase compared to a bar of gold. The value of gold is much higher than the value of money, so one gram of gold it will take up less storage space than flat money.
No Special Knowledge Is Required In Gold Possession
As already mentioned that gold care is very easy without having to have special knowledge. The most important thing is that you understand how to distinguish between real gold and fake gold, but fake gold cases are rare if you buy at an official gold shop outlet.
The advantages and disadvantages of buying gold
Some of the advantages of investing in gold have been mentioned above as reasons why you should buy gold. Even though gold is a valuable asset, it turns out that this is not just an investment for the rich. Because buying gold can use limited funds because there is the smallest unit in buying gold, for example, 1 gram.
Of course, this will refer to the availability of goods at the gold shop where you buy them.
However, buying gold is not without risk, even all investment assets that are considered safe even have their own risks. For example bonds, are debt securities issued by the government with a certain tenor. If the country goes bankrupt, there will be defaults when due.
Gold also has several drawbacks, including the following:
Risk of theft or loss
Because gold is a very valuable precious metal, maybe some thieves want this item so if you don’t guard it properly by placing it in a protected and hidden place, it could be that thieves enter your house and steal it.
Or when you carry your gold on the way because of your negligence, the gold disappears from your pocket. Therefore, keep gold in a safe place that is strong and safe from theft, especially if you have large quantities of gold.
Slow price increase
In theory, the price of gold will tend to increase from time to time, but in practice, this does not happen in a short time. Even the price of gold may fall rapidly in the short term. So you need to consider whether the current price is at the peak of the price or deserves to be called a low price to buy gold.
The volatile price of gold can provide its own risks, for example when the price is low, while at that time you need cash and want to sell your gold. Of course, when the price of gold is low you will get a flat amount of money that is smaller in value, especially if you buy gold when the price is high.
The difference between the buying price and the selling price
When you come to a gold shop and buy gold, the merchant will ask you whether you want to buy gold or sell gold. If you buy gold, you will usually get a higher price than when you sell gold. The trader takes the difference between the buying and selling prices as a commission charged to the buyer and that is the profit for the gold shop.
It might be similar if you buy goods at a low price and sell them at a higher price. the price markup is your profit.
Is it good to buy gold for investment?
Broadly speaking, having gold itself has its advantages and disadvantages, but talking about gold investing, you need to know there are several types of gold investment:
- First, buy physical gold.
- Second, buy paper gold or digital gold.
- The third buy gold stocks.
All three are ways of investing in gold as an underlying asset. But all three have potential advantages and disadvantages that differ from one another.
Buy physical gold
Physical gold is original tangible and you can store it in your favorite safe. And this is the safest type of investment among the three because it is real and tangible gold. Historically gold has always been resistant to inflation, so for long-term investment, tangible gold is safer and more promising for investment in decades.
The worst risk is if you lose gold due to theft or loss, and the value of gold goes down.
Buy paper gold or digital gold
Paper gold is an investment with gold as an underlying asset, but the buyer only gets a contract letter with the seller, while the buyer does not hold the real, tangible gold, but only contracts according to the gold price prevailing in the market.
This gold paper, for example, is trading in ETFs (Exchange Traded Funds) and also in CFDs (Contracts for difference). There the buyer only buys the contract based on the current price, and if one day the price rises, the buyer will get a profit from the increase in the gold price.
While digital gold is storing gold in digital form, so buyers also do not hold original tangible gold, but only numbers that represent the amount of gold purchased, and it is recorded digitally.
Now there are more and more online gold storage applications with the widespread use of smartphones.
Buying gold in CFDs is the riskiest because usually brokers as intermediaries provide leverage facilities which are double-edged swords. If you buy gold and the price drops, your money will quickly be decreasing if you have to hit a margin call and stop out.
Buy gold stocks
Several gold companies have issued shares on the stock exchange, and this investor can utilize to buy shares of companies engaged in mining. Companies operating to find new gold will pay dividends to shareholders at a predetermined time.
This investment is considered quite safe because the company will continue to operate and depend on the gold price in the market which changes based on demand and supply. However, to get a big gain requires a large number of funds. The worst risk of buying gold stocks is if the company goes bankrupt and is unable to pay dividends.
How to predict the price of gold
In predicting the price of gold, it does vary the methods used between one analysis and another, therefore it is only natural that not all predictions are accurate. The simplest method is to use trading tools in technical analysis. This will usually emphasize buying in the support and resistance price areas.
You can even use a simple way by drawing a horizontal line where in history the price formed to support and resistance which is indicated by several retest movements within this area.
Look correlation Gold vs USD
Some traders try to take advantage of the gold-USD correlation which is often negatively correlated. Although this method is not the most perfect, it is often when the USD weakens on the other hand the gold price rises. Conversely, when the USD strengthens, the price of gold decreases.
The reason why traders use this method is that international gold values still use USD as the currency standard. This method is mostly used in short-term trading in gold trading on CFDs.
Analyze based on data COT
COT stands for Commitment of Trader, which data was released by CFTC as the holder of the futures trading authority in the United States. Every Friday they release information on the trading positions of US futures market participants.
From this data, traders then try to process it to make a single forecast conclusion based on COT data. In COT there are three important elements that traders use for gold price analysis. Commercial trader, non-commercial trader and nonreportable.
For professional investors using COT data is quite easy, but not for beginners because it requires accuracy in reading data by data. Here the link COT.
While COT is to obtain market sentiment information from commercial traders and non-commercial traders and retail class traders. Looking for information on which market sentiment makes the highest demand.
Usually to get this information traders looking at the reports from Gold.org.
In the picture above there is information that the biggest demand for 2020 is for ETFs and similar products, then in the jewelry industry, while demand by central banks and technology has almost the same demand.
This means that in 2020, the largest supply of volume in ETFs and similar products such as CFDs, which makes the market wave highly volatile so the risk is also high.
When should to buy Gold?
When is the right time to buy gold is when the price of gold is low? However, when the price of gold low, this will be a question whose answer is not easy to predict precisely.
In some theories, some say when it is a national holiday at the end of the year where many people will sell gold because they need cash. This can trigger the gold price to fall low, and this is a chance that you can try to take advantage of it.
To find out when the gold price is low, traders can take advantage of simple technical analysis with support and resistance theories. Some of the tools you can try are using the Fibonacci retracement, pivot point, or by drawing manually.
Gold price forecast 2020 – 2025
Forecasting can sometimes be the reason someone takes action on assets by forecasting which indicates that the future of an asset will increase in value. I think that the price of gold will fluctuate throughout 2020 and 2021 if the pandemic is not over. The reason is that people’s movement will be limited by health protocols so that the economy will not run smoothly as usual.
And on a pivotal occasion, the American election event has made volatility rise. Shortly after Joe Biden was ahead based on the interim results, the price of gold actually rose sharply, but on November 9 the price fell again and formed a long bar as a bear candle. And at the time pers price of gold is $1860 and continue to decline.
December 2020 forecasts the price in $ 2063 will increase by 9.8%, December 2021 forecast gold $ 2423 increase 29%, December 2022, $ 2996 increase 59%. December 2023 forecast at $ 2,763 increased by 47%, December 2024 forecast price reached $ 2855 increased by 51%.
Gold and silver
Forecast from Gold and Silver predicts that in 2020 the price can reach $ 2000 during a major crisis. And the forecast for the next 5 years can reach $ 3,000 to $ 8,000. If this is achieved it will provide a high gain when buying gold at this time.
The conclusion of the average prediction of the future price of gold is to experience a gradual increase in value. Below as possibility Gold price prediction:
- 2020 gold price forecast reach $2100.
- 2021 gold price forecast reach $1812.
- 2022 gold price forecast reach $2.449.
- 2023 bgold price forecast reach $2.721.
- 2024 gold price forecast reach $2.988.
- 2025 gold price forecast reach $3.012.
Gold price short term analysis
On November 9, 2020, after Joe Biden celebrated victory in the American election and won over incumbent president Donald Trump. This seems to be pumping the price of gold back down after rising to $ 1965 the day before. Until the press time, the price of gold was still depreciating to the level of $ 1854 and there was no sign of a weakening trend.
From the previous price history Gold support is in the zone of $ 1850 level, which by comparing the current price has approached the support zone. The possible scenario is that the price continues to touch this level and then consolidates, if this happens, it is possible that next week the gold price will be bullish again and repeat its history.
The price of gold had formed a new all-time high in August 2020, while the pandemic was still ongoing. Although at the moment the pandemic has no signs of an end or perhaps it will be an issue of all time. But the American elections have had a big effect on the volatility of gold prices.
The victory of Joe Biden, by Trump, is still considered problematic by the organizing committee’s alleged fraud.
Is the gold price currently considered low? Yes, if you use a simple analysis of support and resistance, historically, the current price has reached the point of support. Ideally, after being oversold, the price is likely to rise again. Maybe you need to wait for the confirmation signal on the next day waiting for the buy sentiment action to start again.
Where to trading gold?
Following data from Gold.org where this 2020 gold demand comes mostly from the ETF and / or CFD markets, it may leave a question for new traders where to start trading gold. You just need to find a broker with clear regulations and a reputation for good reviews among users.
I offer TenkoFX if you are interested in trading gold with it. You can also trade crypto through this broker.
However, you should first check all the relevant information because after all this is only an offer and not investment advice. In this case you decide yourself by decision and all the risks. Because CFD trading can cause you to lose money partially or completely. Because this requires special skills to get started.
Gold is a precious metal that has a high intrinsic value, so it is a valuable item. From a security point of view, the risk of buying gold bullion is safer instead of trading gold in CFDs. However, the profit yield on CFD trading is possibly higher than holding gold bullion, as well as the risk, trading gold CFD is more risky.
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