In a newly published report, Ms. Imaru Casanova - portfolio manager of VanEck Gold and Precious metals Fund said that in this new accumulation period, gold is building a solid foundation above $3,000/ounce. She also stressed that a slight decline from the record high of $3,500/ounce last month was normal and not a concern.
Casanova noted that the large investment market has largely ignored gold, although the precious metal has gained strongly over the past two years, with an increase of 27% last year and 25.5% this year. Although investment demand has recently increased, she said that only about 1% of total global assets are currently allocated to gold.
Investment demand is still much lower than the previous peak. As investors return to gold significantly, we believe the rational for doing so is getting stronger the combination of new investment cash flow and strong demand for gold from central banks could push prices up significantly.
Based on the historical relationship between gold in ETFs and gold prices, returning to the peak of the ETF in 2020 could bring an additional increase of about 600 USD/ounce. In our view, it is not too late to start building or increasing positions in gold or gold stocks, she said.
Ms. Casanova advised new investors to give gold a strategic stake of about 5%. We do not recommend continuous buying and selling with this core position, she said.
Regarding gold's upward momentum, commodity analysis group VanEck predicts prices could reach $4,000/ounce in 2025.
Gold is in a good position to continue its upward momentum, especially as more and more Western investors return to the market. tariffs, prolonged inflationary pressures and geopolitical risks will further strengthen gold's appeal as a hedge against market volatility risks," experts said.
VanEck also noted that investors should not consider gold as a short-term investment channel; they predict that gold prices could reach 5,000 USD/ounce within the next 5 years. VanEck emphasized that in the long term, gold has outperformed traditional assets over the past 20 years.
The outlook for gold investment remains very positive, with expectations that the market will continue to be strong. Factors such as geopolitical risks, trade policy uncertainty and persistent inflationary pressures will continue to increase the attractiveness of gold, the analysis team affirmed.
