JPMorgan: Gold Prices Could Surge 80% to $6,000 by 2029

JPMorgan analysts have projected that gold prices could surge to $6,000 per troy ounce by 2029, driven by a potential shift in U.S. assets. The analysts' forecast is based on the inelastic supply of gold, which means that the amount of gold available does not change significantly in response to price fluctuations. This characteristic makes gold a valuable hedge against inflation and economic uncertainty.

The analysts' prediction is contingent on a hypothetical scenario where just 0.5% of U.S. assets held in the form of gold. This shift, though small in percentage, could have a significant impact on the price of gold due to its limited supply. The current price of gold is around $3,300 per ounce, and the projected increase to $6,000 represents an 80% surge. This dramatic increase highlights the potential for gold to serve as a safe haven asset in times of economic turmoil.

The analysts' forecast is based on the premise that gold's inelastic supply makes it a reliable store of value. As global economic conditions become more uncertain, investors may turn to gold as a way to protect their wealth. This increased demand for gold, coupled with its limited supply, could drive prices higher. The analysts' prediction is a reminder of the importance of gold as a hedge against inflation and economic uncertainty, and it underscores the potential for gold prices to rise significantly in the coming years.