Some gold investors such as Jim Rickards foresee gold bullion reaching $10,000 an ounce in the coming years. Historically, gold has never been worth over $2,000 an ounce. How could it be possible for gold to reach a record breaking $10K and when can we expect it to happen?
The Inverse Relationship Between Gold and the Dollar
Rickards points to the inverse relationship between gold and the dollar when making predictions about the future price of gold. He predicts that the value of the U.S. dollar will continue to decline due to the Fed’s inability to raise interest rates in 2016. That prediction became more of a reality recently when the U.K. voted to leave the E.U. Other factors that will hold the dollar back in 2016 are the uncertainty surrounding an election year and political instability worldwide.
10-Year Trend Points to 2018
Rickards suggests that a financial panic will occur soon. He cites historical economic downturns, such as the financial crisis of 2008 and the failure of Long-Term Capital Management in 1998, to show that financial panic occurs every 10 years. With that in mind, Rickards points to 2018 as the year gold will reach $10,000.
In order for this to occur, the economy will have to take several negative turns, but for Rickards the geo-political instability makes it possible for the markets to fall while gold’s rallying continues.
Why $10,000?
Rickards explains that his $10,000 number is derived from the implied non-deflationary price. This means that if confidence is lost in fiat currencies worldwide, then $10,000 an ounce for gold is what it will take to reestablish the dollar without causing deflation.
Do you think gold could be worth $10,000 an ounce? Regardless of whether or not gold reaches these heights, gold bullion is still a solid investment. Still not convinced? Check out “Why Should I Buy Precious Metals Like Gold and Silver?” to learn more.
Gold price will reach up 2000 per ounce in 2018 because us debts will burst
Back to a modern gold standard, like it always should had been.
what about the price of silver and other
metals
kari
You can expect it to reach 10,000 one dollar bills per ounce of gold when it takes about 50 or more of those dollar bills to buy a candy bar.
Ive never understood the mindset that wants the dollar to be so valueless just so they can say their gold is worth more of them.
Youre betting against the economy.
the best thing for ALL of us is for gold and silver to keep fluctuating in price so we can make a little money here and there and keep our wealth protected from inflation and failing/thieving banks.
Well said William. Thanks for the comment!
What he is saying is that revaluating the price of gold at 10,000 an ounce and backing the currency with it will stabilize the market. So no need for anything else to be destabilized.
Silver to 500 😉
If we had listen to Thomas Jefferson we wouldn’t be in this mess .As Fairchild said I don’t care who controls the country as long as I control the money and the Federal Reserve was born