News Bites
'$10k gold sounds crazy, but it's easy to get to', here's why it hasn't happened yet
The path towards much higher gold prices is primarily a function of a declining U.S. dollar, but the Federal Reserve is stuck in a hard place right now, said Dan Oliver, founder of Myrmikan Capital.
On one hand, low interest rates are accommodative for gold, but if the Fed keeps low for too long, inflation will run out of control. On the other hand, if the Fed raises rates in response to higher inflation, the financial system may just “blow” up, Oliver said.
“I look at gold, not in the dollar price of gold…gold is the most stable, monetary medium there ever has been, and that’s why it’s been money for four thousand years,” he said. “I don’t think gold goes to $10,000 in a vacuum, it means the dollar is going down significantly.”
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.
