JPost quoted several analysts who suggested that Goldman Sachs’ gold price forecast of $3,300 per ounce might still be a conservative estimate. This is because Goldman Sachs’ report did not account for a key factor: Chinese insurance companies have recently been allowed to allocate 1% of their assets into gold. This move is reminiscent of what Ronald Reagan did in the 1980s when he deregulated insurance companies, allowing them to invest and offer more stock-based insurance products, which led to a major bull market during that decade. Similarly, China, by allowing insurance companies to provide gold to their clients, is implementing a comparable strategy—but with gold and silver.

The current gold price surge has attracted attention from various economic sectors. Recently, Indonesian President Prabowo Subianto stated that Indonesia’s newly established bullion banks are expected to boost the country’s GDP by an additional $15 billion and create 1.8 million jobs. Prabowo aims to achieve an annual GDP growth rate of 8% before his term ends in 2029. However, data from Indonesia’s Central Statistics Agency (BPS) shows that the country’s economy grew by 5.03% in 2024—falling short of Prabowo’s ambitious target.