Gold Is Still on Track to Hit $3,000—And It Could Go Even Higher!
It’s no secret—gold has been on fire lately, charging toward the $3,000 mark. But after hitting new highs, it took a slight breather, dipping below $2,900 as some investors cashed in on profits. That’s normal market behavior, but don’t let the short-term noise fool you. The forces driving gold higher aren’t going away. In fact, they’re getting stronger.
Why Gold Is Still Headed Higher
Nitesh Shah, a top commodities analyst at WisdomTree, recently pointed out that traditional gold price models are struggling to keep up. He estimates that gold is currently about 15% overvalued based on old models—but here’s the kicker: those models are outdated. The game has changed.
Gold isn’t just moving because of inflation or interest rates anymore. It’s being pushed higher by:
✅ Record central bank purchases—Governments around the world are stocking up on gold like never before. Why? Because they see the writing on the wall: fiat currencies are on borrowed time.
✅ China’s aggressive accumulation—Chinese consumers and institutions are buying up gold at record levels, and they’re not stopping anytime soon. Unlike in the West, where investors panic over every price move, Chinese buyers don’t care if gold is expensive—they see it as a long-term wealth protector.
✅ Geopolitical uncertainty—From trade wars to military conflicts, the world is becoming more unstable by the day. And when uncertainty rises, gold shines.
The Trade War Wildcard
Shah also warned about another major risk on the horizon: a full-blown global trade war. Former President Trump has already announced massive new tariffs on goods from Canada, Mexico, and China, and you can bet there will be retaliation. What happens next? More inflation. More economic slowdown. More panic in the markets. And guess what asset thrives in times of crisis? You got it—gold.
“If we hit a recession with inflation at the same time, gold could go much higher than where it is today,” Shah said. In other words, that so-called 15% “overvaluation” won’t mean a thing when gold surges past $3,000 and keeps climbing.
China & Central Banks Will Keep Gold’s Floor High
One of the biggest drivers of gold’s rise is China’s insatiable demand. Unlike investors in the U.S. or Europe, Chinese buyers aren’t put off by rising prices. They want gold because they need gold. With limited investment options and a government that manipulates markets, Chinese citizens see gold as one of the only safe places to store their wealth.
At the same time, central banks—especially in China—are underinvested in gold. Right now, China’s gold reserves are only about 5% of total holdings. That’s tiny. Shah believes that number will have to rise as China moves away from U.S. dollar dependency.
So what does that mean for gold prices? More buying. Less selling. And a solid long-term uptrend that’s not going anywhere.
The Bottom Line: Get Ahead Before the Next Surge
Gold’s slight dip is just a pit stop on the way to higher prices. The real forces at play—central bank buying, China’s demand, and global chaos—are stronger than ever. If you’re waiting for a “perfect” time to buy gold, you’re missing the point. The perfect time was yesterday. The next-best time is now.
Don’t get left behind. Download Bill Brocius’ eBook, "Seven Steps to Protect Yourself from Bank Failure," and learn how to safeguard your wealth today.
