By
Godfrey Benjamin
March 15th, 2024
Gold’s market capitalization is $10 trillion which makes it the largest asset in the world.
Dear Readers, welcome to another episode of the Coinspeaker Advent Calendar. Today, we will dig into one of the world’s most precious metals, Gold and its price predictions for 2023.
The use of gold is quite diverse in our world today. Riding on its history, many people substantially make use of gold as a medium of exchange, as much as others use it as an investment asset. Many people also make use of gold as ornaments, while the asset has become a dominant object for the affluent around the world.
For several decades, it is not uncommon to see investors buy Gold as a store of value. Its valuation and recognition have grown over the years and today, many people see the asset as a viable hedge against inflation.
One unique feature of Gold is that its price appreciates at a very mild pace, one that helps secure the inherent value of the asset irrespective of whether the swing is bullish or bearish. At the time of writing, the price of Gold is pegged at $1,798.03, after hitting a marginal slump of 0.24% over the past 24 hours.
Gold has seen a milder drop in price when compared to the other more established digital currencies as we have profiled since we started publishing our advent calendar. The one-year price of Gold is depicted in the chart below.
As seen above, the price of gold has slipped from a high of about $2,050 this year to a lot of about $1,600 before pivoting back to its current price range. This growth rate has been impressive as the resilience which made investors trust gold has not been eroded. With the lesser volatility in gold’s price, is there an expectation for the price to touch a new All Time High (ATH) in 2023?
Possible Expectations for Gold Price in 2023
Gold hardly has a wide extreme in its price swings and as a result, we cannot expect a high diversification in the price of the asset through the months of the year. However, we can expect Gold to exhibit a ranging movement with three distinct extremes viz:
- High: $2,200
- Medium: $1,800
- Low: $1,550
With the utility of gold growing by the day, it is guaranteed that its demand will continually grow and hence, a natural basis for the sustenance of its current price level.
Should You Buy Gold in 2023?
As we journey into 2023, the question of whether or not to buy gold is one that is permeating the inquiry box. We need to reiterate here, that the decision to invest in gold or gold-backed assets should be dependent on every investor’s goals.
For use as jewelry, gold may be a wise decision, considering it is cheaper and more available when compared to diamonds. As a hedge against inflation and a store of value, investors can take solace in the fact that the asset is devalued slower than fiat currencies, hence can offer better protection for capital than most traditional fiat-based assets.
Gold’s market capitalization is $10 trillion making it the largest asset in the world. This capitalization helps the asset maintain stability and to avoid general market manipulations. This offers a high level of safety for the asset’s investors.
Should you decide to invest in gold, you can check out our beginner’s guide to investing in the asset and stay tuned for further episodes of the Coinspeaker Advent Calendar.