Three Reasons Why the Gold Price Could Double in the Coming Years

Welcome to the gold bull market. In the past 11 years we have seen the gold spot price increase more than 600% in response to one of the most dismal recessionary cycles in United States history. Gold has outperformed the majority of traditional investment markets consistently over the last decade. The gold spot price is currently fluctuating around $1,500 per ounce, and several market analysts believe that the precious metal’s value could skyrocket in the near future as a result of continued currency inflation, a crumbling economy and weak investment markets that are propped up by nothing more than flimsy government stimuli. Below I have explained how these economic factors could push the gold price to more than double its current value in the coming years:

Inflation is increasing – In the past few years, the United States Government has passed several multi-billion dollar stimulus and quantitative easing measures. These measures were created to prevent an absolute economic collapse, yet in reality they only resulted in hundreds of billions of overprinted United States Dollars that will result in massive inflation down the road. Inflation weakens our spending power, thus investors flock to safe-haven assets like gold because it is known as one of the most powerful anti-inflationary vehicles in the world. Inflation is one of the primary reasons why gold could double in the coming years.

Crumbling economy – Our economy is in shambles. Excessive lending and overspending has put our once-great economy into one of the worst financial crises ever, hence the name Great Recession. A crumbling economy causes major financial turmoil, which in turn causes investors to seek refuge with preservative assets like gold. As the economy continues to weaken, watch gold’s value move higher.

Weak investment markets – Everything from stocks to bonds and real estate to cash accounts have crumbled in the past decade. The only reason that these traditional investing markets remain afloat today is because of the massive stimulus and quantitative easing measures. What happens when there is no more money to bailout banks and keep major corporations afloat? Investors will turn away from these fraudulent schemes and towards wealth-preservation assets like gold. This asset class could protect investment portfolios from further major losses that are too common with ever-weakening traditional US markets.

One of the most interesting gold price projections is forecasting that the precious metal could reach beyond $3,000 per ounce and possibly surpass $5,000 per ounce. If this happens, many investors will wish that they purchased physical gold bars and coins when the price was $1,500 per ounce. Does it make sense to own gold right now?