New Lear Capital Report Says Gold May Surge To $3,200 By 2027

Gold is having a moment, and investors have the Federal Reserve and inflation to thank. With interest rates rising, inflation still elevated, worries about the economy increasing and the national debt growing, the price of bullion – the industry term for gold – hit an all time high in early December, surging past $2,100 an ounce, and many believe it could gain even more in 2024. Prices for gold are continuing to rise, with some analysts predicting $2,500 or $3,000 an ounce – making this area one to watch in the upcoming quarters.

Lear Capital, a leading seller of gold, silver, and other precious metals, thinks gold can even reach $3,200 an ounce by 2027, representing a more than 60% increase from the current price of about $2,000 an ounce. That valuation is driven by factors like the current state of the economy, monetary policy and growing geopolitical tensions. 

As an example, investors often view gold as a safe haven during periods of high inflation when everything costs more, largely because it has maintained its value, withstanding the test of time. Gold also acts as a portfolio diversifier, giving investors another area to invest some of their money when stocks are on the decline. 

Investors Seek Cover From Conflicts 

Geopolitical unrest is another reason gold prices are increasing. Investors tend to move to safety in times of unrest and uncertainty. That was the case in the aftermath of the September 11, 2001 terrorist attacks. Gold doubled in less than five years to $549 in January 2006 from $272 in August 2001. During the great recession of 2008 and 2009 and shortly thereafter, gold went from $665 in August 2007 to $1,346 in October 2010. The Israel-Hamas war is a prime example of geopolitical risk currently impacting the price of gold. Since that conflict started in early October, gold prices have gained. 

The Country’s Debt Impacts The Price Of Gold 

Then there is the national debt, which has a direct impact on the price of gold. Often, when the country’s debt rises, so too does the price of gold. For investors seeking safe havens, this correlation could be an opportunity. Following the dotcom stock crash back in 2000, gold was trading at a low of $256 an ounce and the national debt was $6.5 trillion. Today, gold is worth eight times more. At the same time, the national debt has grown five times higher, which means gold is outperforming the growth in the national debt at a rate of 1.6 times. By 2027, the U.S. Debt Clock predicts our national debt will reach $45 trillion, up 36% from 2023. If gold outpaces debt growth by 1.6 times, gold could reach $3,200 an ounce by 2027, according to Lear Capital. 

How To Invest In Gold 

With gold expected to increase further in 2024, investors have options when it comes to adding this precious metal to their portfolio. You can purchase precious metals directly from the U.S Mint or from the independent dealers like Lear Capital, which has been serving the precious metals market since 1997. Investors can purchase gold coins, bars or invest in funds like the Lear Advantage IRA. It is a self-directed IRA backed by the fortifying power of physical precious metals including gold, silver and platinum. 

Due to global conflicts, rising U.S. debt, inflation and other factors, gold prices are up, blowing past $2,000 an ounce, and seem poised to reach $2,500, $2,700 or even $3,200 next year. For investors looking for a way to hide out from all the turmoil, gold may be the safe haven they are seeking, and Lear Capital could be the partner they need to guide them on their investing journey. 

Featured photo by Lucas K on Unsplash.

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