Goldman Sachs, one of the largest investment banks in the world, He predicted that the price of gold would rise 20% by the end of 2022 to reach $ 2,300.
Although the precious metal temporarily exceeded $ 2,000 an ounce on July 31, the highest value in history, Goldman still has strong growth potential: The bank expects the gold price to reach $ 2,300 over the next 12 months due to the weakening of the US dollar.
Goldman Sachs analysts in particular find this out “a record accumulation of debt” by the United States government and “real fears about the longevity of the dollar as a reserve currency” will drive up the gold price.
What helps gold helps BTC?
Goldman explains that US government measures to combat the economic impact of the pandemiclike subsidies for companies and the general public, could lead to an increase in debt through currency devaluation. Such conditions would lead to an increase in the price of gold and silver.
However, For investors looking for a store of value, there are many other alternatives to the US dollar:: Nigel Green, CEO and founder of the financial consulting firm deVere Groupsaid Bitcoin (BTC) is a safe haven comparable to gold:
“Until now, gold was the epitome of a safe haven. But Bitcoin, which has important features of precious metals such as scarcity, could gradually replace gold in the future, making the world increasingly digital.” .
Indeed, according to a recent study by Bloomberg, It appears that American citizens are gradually giving up the security of legal tender invest in more speculative assets such as stocks, gold and BTC.