Gold could hit US$8,000 an ounce: Is now a good time for Canadians to buy in before prices skyrocket and make it unattainable?

This forecast raises a more practical question for everyday investors: Is there a real opportunity here, and if so, how should Canadians act on it?

Why some analysts think gold could skyrocket

The bullish case for gold is centred on what Wells Fargo strategist Ohsung Kwon calls a “debasement cycle” — a period when rising debt, deficits and inflation steadily chip away at the value of paper currencies like the U.S. dollar. Kwon argues the global economy has entered a fourth cycle like this, and when confidence in fiat money dwindles, investors have historically gravitated toward gold as a store of value.

Since around 2022, a mix of global shocks — Russia’s invasion of Ukraine, persistent inflation and aggressive central bank rate hikes — has reshaped the macro backdrop. In turn, central banks have responded by buying gold at a record pace. According to the European Central Bank's 2025 annual review, as reported by Reuters, gold surpassed the euro to become the world's second-largest reserve asset after the U.S. dollar. And, for the first time since 1996, it makes up a larger share of central bank reserves than U.S. Treasuries.

History suggests this is a familiar pattern. Similar debasement cycles have coincided with big economic turning points — from the Great Depression to the 2008 financial crisis. According to Wells Fargo, these cycles typically stretch about 8.5 years, meaning the current one may still be in its early-to-middle stages.

For Canadian investors, the dynamic is compounded by the loonie’s own sensitivity to commodity prices, trade uncertainty and the relative strength of the U.S. dollar. When the Canadian dollar weakens against the greenback — as it has over much of the past two years — the Canadian-dollar value of gold rises even without a change in the underlying gold price.

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Is now the right time to invest?

Despite the whopping US$8,000 target, the path forward for gold isn’t guaranteed nor straightforward.

Notably, gold recently posted its worst monthly drop in more than a decade, sliding nearly 11% amid ongoing geopolitical conditions including the US-Iran War. Wells Fargo views that pullback as a potential reset toward "fair value" around US$4,500 (C$6,255). The bank's bear-case scenario goes further, putting gold at US$4,000 by end of 2027 — a reminder that the US$8,000 bull case is one end of a wide range, not a guarantee.

However, not everyone is convinced the rally will run unchecked. Bloomberg has pointed to higher interest rates and bond yields that can weigh on non-yielding assets like gold, and a stronger U.S. dollar that can put pressure on prices by making bullion more expensive for global buyers.

Gold has typically been a hedge against inflation and economic uncertainty, but it’s not immune to sharp swings — as recent weeks have demonstrated.

According to the World Gold Council, most financial advisers recommend allocating between 5% and 15% of a portfolio to gold and precious metals. That makes this precious metal a supporting player in a well-diversified strategy, rather than the main attraction — a sensible guardrail for investors tempted by big headlines.

How Canadians can get exposure to gold

Canadian investors have several ways to add gold to a portfolio, each with its own trade-offs in terms of cost, convenience and tax treatment.

Physical gold — coins and bars — is available directly through the Royal Canadian Mint, in a range of weights and formats. Physical gold gives you tangible ownership, but also comes with storage and insurance costs.