Young People Borrow to Buy Gold: Is $4,000 Within Reach or Could a Sudden Crash Destroy it?

employee
Tiger_comments
04-15
Reward Tiger-CoinsReward 500 Tiger-coins

From April 3 to April 7, gold prices plummeted for three consecutive trading days, with a total decline of 7.08%. However, gold prices quickly rebounded and hit a record high of $3,263.

Due to last week's plunge, investors sell gold to cover margin calls from losses in other assets such as equities.

But soon after, as US Treasuries and the dollar plunged, investors once again turned to gold as a safe haven. Amid escalating US-China tariff tensions, markets feared that China might sell US Treasury assets, pushing yields sharply higher.

1. Major Banks Raise Gold Price Targets to $3500-$4000

$Goldman Sachs(GS)$ raised its year-end $Gold - main 2506(GCmain)$ forecast to $3,700 (previously $3,300), with a projected range of $3,650–$3,950/oz. They noted tail risks could drive prices as high as $4,500 (albeit a low-probability scenario).

$UBS Group AG(UBS)$ revised its forecast to $3,500, citing strong buying potential from Chinese institutional and retail investors.

2. Central Bank Gold Buying Estimates Upgraded to 80 tons/Month, Significantly Higher Than 2022's 17 Tons

Goldman Sachs raised its monthly central bank gold purchase estimate from 70 tons to 80 tons. The bank notes that between Nov 2024 and Feb 2025, actual purchases averaged 109 tons/month, significantly higher than the 2022 average of 17 tons/month.

In an extreme scenario, if central bank purchases rise to 110 tons/month, gold could reach $4,500 by the end of 2025.

JPMorgan forecasts that due to ongoing de-dollarization and global instability, central banks will buy about 850 tons of gold in 2025.

3. Up to RMB 20 Trillion from China’s Insurance Sector Poised for Gold Market

UBS pointed out that Chinese insurance capital has officially entered the gold market, with some institutions already conducting test trades.

Among the 10 approved insurers, the combined assets total RMB 20 trillion. If they allocate the maximum 1%, that's a potential RMB 200 billion (~9 million ounces) into gold.

4. JPMorgan Highlights Faster Pace of $1,000 Increments: Time Cut by 2/3

Gold took 12 years to move from $1,000 in 2008 to $2,000 in 2020. It only took 5 years to go from $2,000 to $3,000 (March 2025). Most recently, gold rose from $2,500 to $3,000 in just 210 days, far quicker than the historical average of 1,700 days per $500 gain.

This leads many to believe that the next psychological milestone, $4,000, could come even faster.

5. But Not Everyone Is Bullish – Cash Might Be a Better Hedge?

While gold is traditionally seen as a safe-haven asset, some analysts argue that cash remains the most reliable crisis hedge.

In times of deep market turmoil, gold is often sold off to raise liquidity, even if it initially rises during early panic phases. During both the 2008 and 2020 crises, gold peaked after equity markets started falling, and its high typically came midway through the equity downturn.

So, even if gold reaches a new high now, another steep sell-off could still trigger gold liquidation.

Some young investors recently borrowed money to trade gold, riding the recent rollercoaster. Is your mindset resilient enough to handle such volatility?

  • What’s your gold target price? Based on the trend, could gold break $4,000 by 2026?

  • Are you holding cash, or buying gold as a hedge?

  • If another 2008 or 2020 crisis unfolds, is your portfolio ready?

Leave your comments or post directly in our topic Gold Upgraded Again! $3500 or Even $4000 On The Way? to win tiger coins!

Plus, you can stand a chance to get $5 stock vouchers. Event detail to click: [Event Reward] Join Hot Topics Everyday to Win $5 Stock Vouchers & Tiger Coins!

Rebound Begins: Does Trump Turmoil Mean Upside for Gold?
Gold prices rose over 2% on Monday — rebounding from the first back-to-back weekly loss this year — as an uncertain economic outlook drove up safe-haven demand ahead of this week’s Federal Reserve rate decision. --------------- Is gold still inversely correlated with the stock market right now? Do Trump’s erratic policies suggest there’s still upside potential for gold this year? What’s your target price?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Reward expired
Due to insufficient number of valid participants, 500Tiger coins have been refunded to the initiator
Deadline to 04/23 20:51
Reward-post

Comments

  • icycrystal
    04-15
    icycrystal
    @Shyon @Aqa @koolgal @LMSunshine @HelenJanet @rL @GoodLife99 @SPACE ROCKET @TigerGPT

    From April 3 to April 7, gold prices plummeted for three consecutive trading days, with a total decline of 7.08%. However, gold prices quickly rebounded and hit a record high of $3,263.

    But soon after,as US Treasuries and the dollar plunged, investors once again turned to gold as a safe haven. Amid escalating US-China tariff tensions, markets feared that China might sell US Treasury assets, pushing yields sharply higher.

    Some young investors recently borrowed money to trade gold, riding the recent rollercoaster. Is your mindset resilient enough to handle such volatility?

    What’s your gold target price? Based on the trend, could gold break $4,000 by 2026?


    Are you holding cash, or buying gold as a hedge?


    If another 2008 or 2020 crisis unfolds, is your portfolio ready?


    Leave your comments or post directly in our topic Gold Upgraded Again! $3500 or Even $4000 On The Way? to win tiger coins!

  • koolgal
    04-15
    koolgal
    🌟🌟🌟Gold Fever has hit the markets at a rate that is simply amazing!  Gold's historic surge has reinvigorated investors interest  amid volatility in the Global Market s.

    With prices over USD 3200, will Gold go higher?

    Many people even the young are getting into Gold due to FOMO - Fear of Missing Out!

    I believe that Spot Gold Prices will continue to accelerate to a higher level and even reach USD 4000 as Gold is regarded as a safe haven asset in times of market volatility.

    Central banks around the world are also buying up Gold as Gold is seen as a time tested store of value.  Unlike Fiat currencies which can lose value during periods of high inflation, Gold tends to preserve purchasing power.

    I am fortunate that I have invested in $iShares Gold Trust(IAU)$ as I believe that it is a good hedge against inflation and a diversification in my stock portfolio.

    Gold Fever is here to stay!

    @Tiger_comments @TigerStars @CaptainTiger @TigerClub @Tiger_SG

  • Shyon
    04-16
    Shyon
    I’ve been watching gold closely & the sharp rebound after the recent 7% drop highlights strong demand. While some investors sold to cover losses elsewhere, the quick recovery to $3,263 shows gold’s safe-haven appeal remains intact. With US dollar weakness, surging Treasury yields, and central banks buying at record levels, I believe gold has a solid path toward $3,500 this year.

    I’ve started increasing my gold exposure gradually. While short-term volatility is real—especially during crises where gold can be sold off for liquidity—I still see it as a core hedge. At the same time, I’m holding some cash for flexibility if we see a deeper correction. For me, cash offers short-term safety, but gold is essential for long-term protection in an unstable macro environment.

    Looking forward, I think $4,000 is achievable by 2026 if current trends hold. The pace of gold’s rise has clearly accelerated, especially with new flows from central banks & Chinese insurers.

    @Tiger_comments @TigerStars

  • MHh
    04-15
    MHh
    I don’t think gold will break $4000. The tariffs by trump is just for him to have negotiation power. He is not that silly to spark off a depression and will try to also avoid a recession. I see gold similar to stock ie, a non cash option and having it reduces my liquid cash for me to deploy to stocks when they dip. I prefer to keep a healthy portion of cash. I don’t think anyone can say their portfolio is ready for a crash. Given the volatility, I prefer to keep healthy amount of cash and prefer to take profit rather than to be a bag holder. The recent rise is a relief for most investors. Let’s see how much this can rise. I would take profit at the right time. @Wayneqq @Success88 @HelenJanet @Fenger1188 @DiAngel @Kaixiang @SPOT_ON @rL come join
  • KienBoon
    04-15
    KienBoon
    Understand there is no regular dividend from gold ETF etc. Hence, it may not be suitable for long term investment in comparison to equities like bank counters. Gold price is increasing currently due to so called  safe haven during market turbulence times. It may drop back to below 3000 once Trump's storm is calm. Might not seems feasible to borrow money to buy gold in view of borrowing interest rate, etc. However, no harm buying some gold ETF at this stage to take advantage of the tailwind now. Say about 10% of your investment portfolio. Cheers. Have a good day ahead. [Smile]
    • KienBoonReplykoolgal
      No worries. Good to share info around. Thank You. Have a good dinner. Cheers
    • koolgal
      Thanks for sharing your valuable insights 😍😍😍
  • Success88
    04-15
    Success88
    I don't think will break $3500 is not good idea to borrow money to buy gold at this uncertain period
    • Success88
      Thanks for your great insight
    • koolgal
      You are absolutely right.  Borrowing money is not a good idea.
Leave a comment
36
103