Goldman Sachs has issued advice for investors to consider gold and other commodities as a way to hedge against unforeseen financial risks. The firm’s latest report highlights a significant rise in gold prices and offers predictions for the future.
Gold Price Predictions
According to Goldman Sachs, gold prices have increased by 40% in 2023. The firm anticipates that the price of gold may reach $4,000 per ounce by mid-2026.
Gold ETF Holdings Surge
In addition to price predictions, the report notes that gold exchange-traded funds (ETFs) have seen substantial growth. Holdings in gold ETFs rose from 2,591.78 tonnes in January 2025 to 2,991.93 tonnes by September 2025.
Reasons to Hedge with Gold and Commodities
- Inflation protection
- Counteracting slowed economic growth
- Mitigating global policy uncertainty
- Responding to supply shocks
Gold and commodities serve as effective tools for safeguarding investment portfolios, especially during turbulent economic times. The report suggests that as globalization diminishes, countries may leverage their commodity ownership, creating potential supply limitations.
Historical Performance of Commodities
Goldman Sachs emphasizes that commodities and gold have historically performed well during periods when stock and bond markets show negative real returns, based on data from 1970 onward.
Top Gold ETFs
This year, gold ETFs have demonstrated impressive performance. Among the various options, the SPDR Gold MiniShares Trust (GLDM) has shown the highest increase.
Investors looking to enhance their strategies may find value in these insights from Goldman Sachs as they navigate the complexities of the current financial landscape.
