Gold has always been considered an investment. It has been used as a backup when the markets are declining. The gold price is not affected by the current market value.
This is why gold is risky to invest in if you are hoping to dump your money into gold itself.
How much will gold be worth in 50 years? Based on past statistics, gold prices do not go up, especially when many markets are going upwards. Investors will then go towards this asset when a fear element is present. It occurs when people fear that stock prices will go down.
Gold is actually not an asset that can grow your income. It is not like other types of assets; the ROI on the value of gold depends on the price. Moreover, investing in gold has other costs, as well. As gold is considered an asset, you will need to invest in security for gold.
After considering these different factors, gold is working best as a relatively diversified portfolio. It might be a buffer in a stock market that will collapse. Let us take a glimpse at how this asset has been holding up over a long period.
Different Plus Points for Gold
- The asset actually is rather valuable and it is a buffer for inflation.
- As time passes, other financial assets will value more than gold.
- Thus, over a short period, gold might win the race.
Gold vs. the Different Competitors Like Bonds and Stocks
Evaluating whether the gold will perform after an extended period will also depend on the overall period the whole gold price is being analyzed. Over 30 years, stocks also become more valuable than gold compared to other bonds that are the same, but as time passes, gold has taken over other financial assets.
From its price three decades ago, the price of gold has increased more than 300%. It really increased over a period of three decades, and the DJIA also went up. Over the long-term, gold will definitely be a worthwhile financial asset to invest in, and it is not as volatile as bitcoin or other cryptocurrencies. Bitcoin and other cryptocurrencies are not stable, so gold would be the best backup to control the inflation on the stock market. Even bitcoin mining is not recommended, and there are a lot of things to bear in mind. Gold at the moment is still worth a lot, but in fifty years, you never know which financial asset will overtake it.
Different Historical Aspects
To obtain a different point of view on different gold prices, you might want to look at the gold statistics three decades ago. Since President Nixon closed a purchase window for gold in the USA, the gold price has effectively been set at a level for about 35 USD for every ounce of 4.5 grams of gold.
President Roosevelt needed citizens to give up their gold reserve coins to interchange with the American dollar currency, so the gold investment is complicated based on the Gold Reserve Act. People can’t benefit even if they physically hoard a lot of gold.
Will Gold Still Be Valuable in 50 years?
Gold prices are a complete mystery.
It is considered raw material for different processes and it has a lot of unique and valuable properties when you use it as a material in a metal. It is easy to work on and it melts at low temperatures. It looks good no matter how it appears, either in white or gold, and it doesn’t rust or tarnish like most metals. It is also a good heat and electricity conductor and it has a lot of valuable properties.
It is also not intense; it is not amalgamated. It will rub away easily when you put it in your pockets.
Gold is rare and difficult to find and extract. The extraction process uses harmful chemicals like cyanide.
Gold also has historical value, and it is a favorite material when people try to use it for jewelry. It has been used in legends and myths, as well.
Gold is also used as a currency.
There are three different types of currencies in the world today.
Significant Currencies: Backed up by a national economy and a central bank. These things have zero intrinsic value.
Cryptocurrencies: About one thousand cryptocurrencies are around; the most well-known one is called Bitcoin. These are not backed by the economy or the central bank and have no intrinsic value.
Exotics: They do not have backup from the economy or the central bank, but have a lot of intrinsic value.
Significant major world currencies abandoned the gold standard many years ago. Still, there are many reasons why there is a considerable demand for gold and why gold has maintained its value with an extensive range of different major currencies. If the critical currencies had maintained the gold standards, the inflation rate would have increased. There is no rational explanation for this, but, using the supply and demand rule:
- If too much gold pops up, the value of the gold will drop.
- If the demand for gold falls, the gold loses value.
- If something happens, gold will maintain value.
All the talk about gold is all about money, and while money value has created delusional values based on a societal delusion, some people believe in the value of gold and think that it will be the currency for food and fuel in the future.
Verdict. How Much Will Gold Be Worth in 50 Years?
The future is uncertain. People are wearing underpants in case something happens. Gold is the underpants.
What will gold be in 50 years? No one knows.
If you wish to keep some, you may do so. But nobody can predict the future.
- U.S. Bureau of Labor Statistics. Gold prices during and after the Great Recession. https://www.bls.gov/opub/btn/volume-2/gold-prices-during-and-after-the-great-recession.htm
- The University of Chicago Press: Journals. ARE YOU WORTH YOUR WEIGHT IN GOLD? https://www.journals.uchicago.edu/doi/pdf/10.1086/259267