Renowned Gold Bugs Have Bold Predictions for Gold

Prominent gold boosters Jim Rickards and Peter Schiff believe that gold’s recent rise in price is only the beginning of a promising trend for the commodity in the near future.

According to Rickards research, gold could hit $15,000 by 2025.

“I would put [gold at $15,000 an ounce before 2025,” Rickards said to Kitco News. “If you just take the average of the prior bull markets: 1971 to 1980, nine years, 2200%, 1999 to 2011, a twelve-year bull market, about 700%. Just take the average, you don’t have to go to the higher of the two or extrapolate, if you just take the average of the two you would say the next bull market is going to be a little over 10 years and it’s going to go up 1500%,” he remarked.

Theoretically, Rickards believes that $15,000 is the “implied, non-inflation” price of gold under the hypothetical establishment of a gold standard.

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Schiff called attention to the fact that historically speaking, the Dow to gold ratio has witnessed much higher levels than what has been observed in recent weeks. He believes that in the case of the ratio retracing historic levels, the gold price could potentially skyrocket.

“Another way to look at it is to just look at the price of gold in relation to the Dow Jones, because you have historical reference points where twice in the prior century at significant bear market lows, the Dow traded down to a single ounce of gold: 1932 the Dow Jones was roughly equal to an ounce of gold, and in 1980, the Dow was roughly equal to an ounce of gold,” Schiff commented

Additionally, Schiff noted that at the present levels of the Dow Jones, gold’s price will have to reach $26,000 an ounce to achieve a 1:1 Dow/gold ratio.

Schiff and Rickards both agree that a significant retracement in gold prices has already taken place in the current bull market, and it’s very unlikely that prices will experience a considerable pullback in prices.

Gold has drawn major interest due to economic unrest caused by the Wuhan virus related lockdowns across the globe.

Gold has thousands of years of experience as a money and safe haven for those interested in preserving their wealth during times of social upheaval.

Given how governments have responded to the current pandemic, it’s likely that gold is due for a massive surge in prices. People would be wise to acquire gold in these trying times.

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