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    Jun 16

    When we think of jewelry, there are a couple of things that automatically come to mind without even thinking. Gold and diamonds are the two most important and common elements of jewelry. Both are relatively rare and can be very expensive. In the current climate, gold is getting all of the attention as its price continues to rise out of fear of the unknown. Many are concerned about the value of money, so they turn to gold and gold stocks to invest as they are sure that the price of gold will continue its upward movements. This is something new and gold started to take off when the economy went bad a few years ago. Historically, gold have never been even close to the price of platinum, but it is now as many are pushing up demand for the precious metal through buying frenzies based on the hunch that things are bound to get worse or even collapse. This fear and interest on maintaining investments has caused massive price increases on gold.

    Standard Chartered bank has taken this even farther and thinks that the price of gold will hit $5,000 an ounce in the next ten years. While there is absolutely no way to tell if this is even an option, the bank looks toward the future to estimate this price as they see no increase in supply and a huge increase in demand. This demand will continue to raise prices as it is doing now and will eventually push the precious metal to this point. While it is all speculation, their theory seems rather sound as many will continue to believe that U.S. money is worthless or is approaching that point and gold will become the true currency. The prices being that high will have a huge impact on the jewelry sector as well as many will have to turn to alternative metals for any of the jewelry to be affordable. Silver and palladium are currently the least expensive of the precious metals, but many believe palladium will also rapidly increase as demand for it will continue in the automotive industry. Palladium is currently used for catalytic converters and if the demand for cars continues, we may see a shortage of that metal for jewelry.

    As demand increases for gold, obviously the prices increase, but many of the demand is coming from places that we least expect. As things get better for countries such as China and India, many people are looking to high-end jewelry for their spending. Mining has not resulted in much more gold in general and many experts believe that not many more mines will be found in the next ten years, so the quantity of gold will only go up a bit while the demand may soar. If more mines are uncovered in the next decade, prices could stabilize, but that is a big “if”, and as far as the current trends, that is highly unlikely, which will make price drops unlikely in the near future.

    One Response to “Bank Predicts $5,000 Gold Price in the Next Ten Years”

    1. precious metal prices Says:

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