The market for gold in 2048

jewellery has struggled as a result of this trend.”

Demand for gold for investment purposes has changed dramatically since 1988. Gold-backed ETFs have generated substantial new demand for gold during that period, but now the gold industry is facing a new challenge from digital currencies. Says Reade: “Overall, therefore, we believe interest in gold as an investment asset class is likely to increase over the next 30 years, although clearly this will ebb and flow, in line with perceptions of stability and economic growth prospects.”

Demand from the technology market will expand primarily because demand for electronic gadgets will continue to rise. The WGC concludes that demand is unlikely to disappear in this sector, but it doesn’t go too far out on a limb.

On the supply side, Reade is cautious: “We expect new mine supply to decline over the next 30 years, hit by rising costs. … [E]ven today, new gold mines need a price of about US$1,500/oz, and with costs having increased at a compound annual rate of 10% over the past 15 years, additional [environmental, social, and governance] costs are likely to mean that even higher gold prices will be required in the future.”

Reade also cites three major factors that likely will dominate gold trading over the next three decades. First, regulatory changes; second, mobile applications; and third, adoption of gold as a crypto asset. He concludes, “[W]e believe that the gold industry should be alive and well at the end of [the next 30-year] period.” (Source: 24/7 WallSt.com)