Investment in gold will increase, prices will remain on the rise

Juerg Kiener, MD and Chief Investment Officer of Swiss Asia Capital, estimates that the price of gold could reach four thousand dollars per ounce on the world market in 2023.

Juerg Kiener made such a comment in a recent interview with CNBC.

Juerg Kiener said in the interview, “In various countries around the world, the market is unstable due to fear of recession and rising interest rates. And that is why the demand for gold as a safe investment will continue to rise.

In 2023, the price could rise from $2,500 to $4,000 per ounce.

He said: “Chances are there will be a big jump in the gold market. This is not a 10% or 20% increase, but a big increase. that will reach new heights.’

“A lot of countries could go into some kind of recession,” Kiener explained. This will slow the tendency of central banks to raise interest rates. As a result, gold will become more attractive. Meanwhile, central banks have invested heavily in gold. ‘

According to the World Gold Council (WGC), global central banks bought a total of 400 tons of gold in the third quarter of the year, almost double the 241 tons they bought during the same period of 2018.

According to a report by the Reuters news agency, China is the biggest buyer of gold. Earlier this month, the country’s central bank announced that it had added $1.8 billion worth of gold to its reserves. This increased their gold reserves by $112 billion.

“Since 2000, we’ve seen gold come back 8-10% a year in any currency,” Kiener said. What you can’t achieve in the bond market. Even in the stock market, this is not possible. Especially in this time of inflation, investors will be safe investing in gold.

However, the price of gold will double next year, disagrees with Kenny Polcari, senior market analyst at Slatstone Wealth. He said, “I don’t think the price of gold will hit $4,000 an ounce in 2023, but the price could hit $1,900. The question of prices will depend on how policymakers raise interest rates amid inflation and recession.

Nikhil Kamath, co-founder of India’s largest broker Zerodha, said: “In 2023, investors will add 10-20% gold to their portfolios. This will be their strategy for the new year.

According to him, gold has traditionally been used as a hedge against inflation.

At the start of 2022, the price of gold on the world market was $1,830 per ounce. The price rose by $1,000,957 an ounce in early March due to the Russian attack on Ukraine. The dollar later strengthened on aggressive interest rate hikes by the US central bank, the Federal Reserve, to control inflation. It loses its appeal as a safe investment and gold tends to fall. However, the price of this precious metal has started to rise again as the rise in interest rates has slowed somewhat. On December 22, the price of gold on the world market rose to 1,815 dollars an ounce, the highest for six months.

Currently, the reason for the increase in gold prices, according to Trading Economics, is that investors fear that the United States will fall into a recession next year. As a result, the upward trend in interest rates will decrease. The demand for gold will increase as a safe haven. So the price started to rise again.

formula : CNBC, Trading Economics.

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