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Gold has historically been impacted by stock market crashes, as seen during the Global Financial Crisis and COVID-19, but it tends to recover more quickly and is less affected by market “rug pulls.” For example, during economic downturns, gold often experiences a surge, as we are seeing now. Unemployment is rising, the Federal Reserve is cutting rates significantly, and a recession appears to be looming—not a repeat of 2008, but a downswing is coming.

Some analysts speculate that gold could reach $3,000 in the near term, though it’s unlikely to establish a stable floor at that level anytime soon. A $3,000 floor might become realistic in the next 5–8 years, but for now, it remains more of a potential peak. Recently, the spot price hit a new record high of $2,647, and many expect this upward trend to continue, with the $3,000 mark potentially arriving by year’s end. A gold bull market may indeed be a silver lining during these “interesting times.”

Despite this, it’s important to remember that gold price movements can be unpredictable. For instance, during the early stages of COVID or banking crises, gold’s performance was often mixed, with price drops as people sold off assets for liquidity. Geopolitical tensions can also drive investors towards the U.S. dollar, which can put downward pressure on gold prices in dollar terms.

Timing the market is notoriously difficult, so a long-term hold strategy may be wiser, only selling when necessary or when you prefer cash over gold. Many remain bullish on gold, especially now as countries are increasingly shifting their reserves into gold rather than U.S. treasuries or dollars. In times of crisis, it seems likely that gold, not the dollar, will be the safe haven.

For long-term investors, gold remains a solid option, given its intrinsic value and history of growth over decades. Although a drop below $2,500 is possible, over the next 5, 10, or 20 years, gold prices are expected to be much higher. The decision to buy heavily now or wait depends on one’s risk tolerance and market outlook, but gold continues to be a reliable store of value for long-term holders..

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