Gold is going to hit $8,000 by 2031, Deutsche Bank predicts. Why the world is distracted by this precious metal now

Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.

If you thought gold’s run in the past five years was extraordinary, delivering a 177% return (1), brace yourself for the next five.

Since 2020, the value of gold has soared (2) from $1,585 per ounce to more than $4,500 per ounce.

Top Picks

Now, German investment bank Deutsche Bank predicts it will nearly double to $8,000 per ounce by 2031.

In a research note published April 27, Deutsche Bank strategist Mallika Sachdeva and research analyst Michael Hsuah observed that China, Russia, India and Turkey and central banks in emerging markets are all stockpiling (3) gold.

This includes central banks in Kazakhstan, Saudi Arabia, Qatar, Egypt and the United Arab Emirates.

As The Northern Miner reports (4), since the 2008 financial crisis, these central banks have collectively increased their total bullion reserves to more than 225 million oz.

According to the Deutsche Bank’s modelling (5), if their collective gold holdings hit 40% of total reserves, gold could hit $8,000 an ounce.

In other words, demand from these institutional buyers is driving gold prices higher. Here’s why they’re stockpiling the precious metal.

Researchers predict a new world order with gold on top

Sachdeva and Hsuah observed a common thread among many of the countries stockpiling gold: vulnerability to Western trade sanctions.

They argue that at the very same time these countries’ central banks have been increasing their gold reserves, they’ve also been reducing their U.S. dollar reserves as a way to achieve independence from those sanctions.

“The dollar banking system has been weaponized,” Sachdeva and Hsuah write.

The researchers predict a new world order in which gold — not the U.S. dollar — will be the monetary anchor.

The trend toward central banks increasing their bullion reserves is certainly not slowing.

Last year, the World Gold Council surveyed (6) central banks around the world about their intention to buy gold. As Mining.com (7) reports, 76% said they planned to increase their gold reserves in the next five years, and a similar number (73%) said they’d be reducing their U.S. dollar reserves.

The majority said buying gold was a good way to hedge against the impact of interest rates, inflation and geopolitical instability.

Even some longtime skeptics are warming up to the precious metal.

“It could easily go to $5,000, $10,000, in environments like this,” said Jamie Dimon, CEO of JPMorgan Chase (8). “This is one of the few times in my life it’s semi-rational to have some in your portfolio.”

That shift in sentiment comes as investors search for shelter from an increasingly unpredictable economy. Gold prices surged nearly 65% in 2025 as fears surrounding tariffs, slowing growth and geopolitical turmoil sent investors flocking toward traditional safe havens. The precious metal even crossed the $5,000-per-ounce mark for the first time in January before pulling back in February.

Historically, gold tends to perform well when confidence in the broader economy begins to crack. Because its value isn’t directly tied to corporate profits or any one country’s economic performance, investors often view it as a financial shock absorber during periods of instability.

Read More: Here’s the average income of Americans by age in 2026. Are you falling behind?

Invest through a gold IRA

For those looking to add gold to their retirement strategy, opening a gold IRA through Goldco is one option that could come with added tax benefits.

With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.

If you’re still on the fence about where gold fits into your financial plan, you can download their free gold and silver information guide today to better understand the potential benefits — and risks.

Don’t overlook diversification

Betting everything on gold alone may not be the smartest move — after all, it’s a diversifier, not a wholesale replacement. Even as some countries reduce their dependence on the U.S. dollar, the greenback remains the world’s primary reserve currency.

Rather than putting all their money into precious metals, many seasoned investors prefer a balanced approach. Ray Dalio has recommended allocating between 5% and 15% of a portfolio to gold, while Sprott Asset Management suggests 10% to 15% (9).

Another asset class that often performs well during inflationary periods is real estate.

Like gold, real estate is a tangible asset with intrinsic value. But unlike gold, it has the potential to generate recurring income. Rental properties, for example, can provide steady monthly cash flow over time.

And during periods of inflation, landlords often have the ability to raise rents — allowing real estate investments to keep pace with rising prices.

Of course, owning property directly isn’t always as passive as it sounds. Managing tenants, keeping up with maintenance and handling mortgage payments can quickly start to feel more like a second job than a hands-off investment. For investors who want exposure to property without the hassle of becoming a landlord, fractional real estate investing platforms may offer a middle ground.

For instance, mogul is a real estate investment platform that offers fractional ownership in blue-chip rental properties.

Founded by former Goldman Sachs real estate investors, mogul hand-picks the top 1% of single-family rental homes nationwide for you.

This way, you can invest in institutional quality offerings for a fraction of the usual cost — while receiving monthly rental income, real-time appreciation and tax benefits.

Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours, with investments typically ranging between $15,000 and $40,000 per property.

Getting started is a quick and easy process. You can sign up for an account and then browse available properties. Once you verify your information with their team, you can invest like a mogul in just a few clicks.

Those with more capital on hand can expand their real estate portfolio beyond residential real estate and short-term vacation rentals. After all, there are more types of real estate available besides single-family homes.

Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.

Lightstone DIRECT’s direct-to-investor model ensures a high degree of alignment between individual investors and a vertically-integrated, institutional owner-operator — a sophisticated and streamlined option for individual investors looking to diversify into private-market real estate.

With Lightstone DIRECT, accredited individuals can access the same multifamily and industrial assets Lightstone pursues with its own capital, with minimum investments starting at $100,000.

Consult an expert before taking any decisions

Financial professionals caution against chasing trends or overloading your portfolio with any one alternative asset — even popular ones like gold and real estate. While these investments can provide inflation protection and diversification benefits, they also come with risks, liquidity concerns and market fluctuations of their own.

It could be a good idea to talk to a financial advisor to determine the right balance for your portfolio and long-term financial goals — especially for investors with $250,000 or more in assets.

Finding a reputed FINRA/SEC-registered advisor near you is now easier than ever with WiserAdvisor.

Just answer a few questions about your savings, retirement timeline and overall investment portfolio, and WiserAdvisor will review its network to match you — for free — with up to three vetted, reputable advisors aligned to your specific needs.

WiserAdvisor does the heavy lifting when vetting financial advisors on its roster. Each advisor is screened based on their years of experience, their SEC/FINRA registration and records, and compensation criteria.

Just schedule a no-obligation consultation with your matches to find the best fit for your long-term goals.

Note: WiserAdvisor is a matching service and does not provide financial advice directly. All matched advisors are third parties and specific financial results are not guaranteed.

— With files from Laura Boast

You May Also Like

Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.

Article Sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Curvo (1); Macrotrends (2); Deutsche Bank Research (3), (5); The Northern Miner (4); World Gold Council (6); Mining.com (7); Bloomberg (8); Sprott Asset Management (9)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.