Gold is poised for new historical highs
The latest reports from Bank of America (BofA) show that gold has begun to gain strong momentum at the start of 2026 amid expectations of reaching $6000 per ounce by spring.
Despite this rise, experts at Crescat believe that the size of the gold 'bubble' is still very small compared to the legendary growth seen in the 1970s.
The key point here is that the gold-to-market capitalization ratio of global equities remains at historically low levels of about 20%, far from the peaks of previous cycles, indicating that there is still room for significant further upside.
Key data and forecasts for 2026:
• Analysts at Bank of America expect gold to reach levels of $6000 per ounce driven by a historical pattern that saw increases of 300% in previous cycles.
• Investors are still allocating very small percentages to gold from their total assets (around 2.8%) compared to stocks and bonds.
• Mine production is expected to decline by 2% in 2026 while central bank demand will remain strong at around 800 tons annually.
• Continued inflationary pressures and expectations of a reduction in US interest rates by 75-100 basis points during the year.
Personally, I believe that the current calm before the upcoming price storm is the best time to rearrange the investment portfolio, especially with rising global debts.
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