Gold may quadruple in price: detailed analysis
Gold price may reach $10 thousand per ounce
The price of gold has recently reached $2500, its highest ever. However, we may soon see prices at least four times higher. The economic trend suggests that gold prices will rise in the near future along with a falling dollar. According to the Schiff Sovereign financial agency, the price of the yellow metal does not seem too high.
‘There are very strong arguments that gold is still quite cheap. It is possible that in a few years, gold worth $2500 may seem extremely inexpensive,’ the experts believe.
The resource believes that the fall in the value of the US currency may be linked to the possible presidency of Kamala Harris. Her policies will lead to an increase in budget spending, rising inflation and an inflated US national debt.
This may result in increased investor interest in gold, as it has a long history of preserving value. ‘Gold is a likely and very sensible reserve asset for investors instead of dollars because it has a 5,000-year history of preserving its value. Central bankers know that they can exchange gold for other currencies or strategic assets, and it is this sentiment that drives them to buy gold,’ explains Peter Schiff, Chairman of Schiff Sovereign.
The nature of a good reserve currency is stability. Foreign governments and institutions need a stable reserve currency. Countries around the world are desperate for something they can rely on – something that won’t be ‘inflated’ or subject to gigantic public debt.
‘This is why gold is reaching historic highs. The biggest driver of the metal’s price growth is the demand from central banks, and they are buying literally tonnes of gold. For me, this is a clear sign that they are preparing for the end of the dollar as the world’s dominant reserve currency,’ Schiff said.
As a reminder, Singapore has opened a huge precious metals storage facility for the world’s super-rich who are interested in a high level of security. The six-storey warehouse is designed to hold 10,000 tonnes of silver (more than a third of annual global sales) and 500 tonnes of gold, which is equivalent to about half of the gold reserves that central banks around the world purchased in 2023.