The London Bullion Market Association (LBMA) has released gold price forecasts for 2020. Every year, the organization collects forecasts from analysts from a wide array of institutions for a contest to see whose forecast ends up being the closest.
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Bullish gold price forecasts for 2020
The consensus is looking for double-digit increases in the gold price in 2020, although analysts are also predicting a large amount of volatility in the yellow metal this year. The gap between the lowest price and the highest range is much wider than it was for last year's forecasts.
January has already brought sizable increases in the gold price for 2020, but analysts are mostly expecting it to remain roughly flat with only a gain of 0.3% the rest of the year. The average gold price forecast for 2020 is $1,558.90, while the highest high is forecast at $2,080, and the lowest low is estimated at $1,300.
The range between the high and low prices is $780, demonstrating the greater volatility that's expected this year. Last year's range between the high and low prices was only $325.
Bulls versus bears
Independent analyst Ross Norman is the most bullish of all the analysts who turned in their gold price forecasts for 2020 to the LBMA. He set his low price at $1,520 an ounce, his high price at $2,080, and his average price at $1,755.
The most bearish gold price forecast for 2020 comes from Bernard Dahdah of Natixis. He set his low price at $1,300 and his high price at $1,450. His average price stands at $1,398 an ounce.
In 2019, gold prices ended up averaging $1,392.60 an ounce, so this year's estimated $1,558.80 represents an increase of almost 12% from last year's average. In the first half of January, gold prices were already averaging $1,554.20 an ounce.
Other precious metal forecasts
The LBMA also collects price forecasts for silver, platinum and palladium from analysts. The average estimate for 2020 is $18.21, while the highest high is set at $23.15, and the lowest low is estimated at $15.10 per ounce. At $18.21, the silver price would be up 12.4% from last year's average price and up only 0.7% from the average price in the first two weeks of January.
Analysts predict that platinum will be the best-performing of the four metals this year. The average analyst forecast is at $1,005.10, while the highest high is at $1,350, and the lowest low is at $775. The average estimate for this year is 16.5% higher than last year's average price and a 3.2% increase from the average price in the first two weeks of the year.
Analysts are predicting an average price of $2,116 for palladium this year, with the highest high set at $3,200 and the lowest low at $1,500. The metal has been soaring past record highs and already broken the highs forecast by many analysts for this year.
Why Buy Gold Online
Private enterprises run most gold mining and operations. Gold bullion rounds or gold medallions aren't popular, unlike the current silver market. The traditional way of buying gold bullion comes in gold bars, ranging in sizes, from 1-gram to 10-ounce gold bars. And the top seller is still the 1-ounce gold bar size. However, gold bars don't have a face value when speaking of legal tender because their value depends on the actual gold weight or AGW.
When you buy gold bars online, it's a lot easier and more convenient, like when you're investing in gold. Also, you have access to the world's best gold refiners located in Germany and Switzerland. Gold bars from continental Europe are more popular than the Gold Philharmonic coins of Austria.
Modern technology enables gold buyers to shop with the utmost convenience via mobile device or computer without leaving home. Buying gold bullion online makes you a part of the growing digital trend. But of course, just make sure that you're only buying from a legitimate and dedicated company, providing the quality gold products and customer service.
Here are some expert tips when buying gold online:
- Assess the Credibility and Reputation of the Gold Supplier: Check the website of the company and find out the gold products and services they are offering.
- Ensure Web Security: Check for security features, like SSL encryption to ensure the security of your financial details if you buy gold online. It will also help to inquire about refunds or some money guarantee if you run out of problems with your order.
- Read the Terms: Just like any other online business transaction, it's important to know the terms and conditions to ensure a smooth flow of buying gold products online. Read the finest print to know what you're dealing with.
With the knowledge of possible gold prices this year and the coming years, you’re better prepared to invest in real wealth. Buying gold products online is a convenient way to invest without leaving home.