Make Kitco Your Homepage

World doesn’t need a war to see $10,000 gold price

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) - Extremely dovish monetary policies around the world and economic conditions could propel gold prices much higher, to even $10,000 over the long-term.

“I think it goes up to $10,000. I don’t think it’s going to happen in the next 12 months, but I think the supply of gold, peak gold is there. The supply of gold is not growing. GDP per capita is still strong in China and India and Southeast Asia. 60% is bought for love, and that’s a steady demand for gold,” Holmes said.

He added that we are now in a paradigm shift where the Chinese have shifted from being market takers of gold to being market makers.

“Recognize that the gold traders are no longer in London, [who were] basically the price makers, the Chinese are [now] the price makers, they used to be the price takers, and that is a paradigm shift,” Holmes said.

Holmes said that the world doesn’t have to see war in order for gold prices to climb to those levels.

“It’s just a slow debasement of currencies, art is going to do exceptionally well, and real estate,” he said, adding that according to a Morgan Stanley report, the best performing asset in the last 20 years has been real estate, followed by gold.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.