Gold price predictions - Gold price prediction chart
In today’s video presentation we looked at the Gold price charts, including some long-term Gold price prediction charts showing us how Gold could potentially reach $2600, $2800, $3600, and then $7928 in the next two years.
Watch the video to see Gold price predictions for next 5 years.
Gold price prediction 2027
The last Bull Market in the Precious metals started in the early 2000s and ran for 12 years. During that time span the price of Gold increased by 758 percent. In the subsequent four-year Bear Market Gold was cut nearly in half with a 46 percent loss.
There are several factors suggesting that the Bear Market ended in late-2015. In the video presentation we show this behavior to support our thesis that a new Bull Market began at that point.
Using these data points, we can predict a price of Gold at $7928 in late-2017.
Adding 12 years to late-2015 gives us late-2017 as a target date.
Using the low price of Gold from late-2015 ($1045.91) and projecting a 758 percent increase gives us a target price of $7928 per ounce.
Remember that we are just spit balling here - throwing mud against the wall, so to speak, and the mud may or may not stick.BRICS Gold backed currency
As I explain in the video, there are significant events on the horizon that could dramatically affect the price of Gold.
On October 22nd, 2024, BRICS Summit XVI will begin in Kazan, Russia. There is widespread expectation that BRICS will announce their new Currency, or at least lay out a time frame for the introduction of their new Currency.
Although many analysts are suggesting that this BRICS Currency will be backed by Gold, that is not my expectation. No government or politician wants to commit themselves to a Gold backed Currency or a Gold standard of any sort.
Think about having Fiat money and a printing press. All you have to do is go down in the basement, hit the go button on the printer, and before you know it you have a stack of Benjamins ($100 US bills), Rubles, or Renminbi.
If you choose to adopt a Gold standard you can't do that anymore. Gold forces you to be disciplined because Gold can’t be printed.
For that reason, no entity, including BRICS, is going to willingly announce a Gold backed Currency or tie themselves to a Gold standard. Let me state for the record, however, that I have been wrong before and I’m certainly willing to be wrong on this.
An important point to keep in mind is that we don’t need the introduction of a Gold backed Currency in order to see the price of Gold rise dramatically.
In March of 2022, the LBMA and COMEX banned Russian Gold and Silver refineries from trading their Precious metals on the global exchanges. Implementing the ban was achieved quite simply by declaring that Russian-produced Silver and Gold bars were no longer considered good for delivery. In other words, these bars could no longer be used to fulfil futures contracts at either the COMEX or LBMA.
The ban set off a movement in Russia to create their own international Precious metals exchange and, more importantly, to break the stranglehold that the LBMA and COMEX exchanges have on the price of Gold and the price of Silver.
Russia is working towards this objective by strengthening the Moscow Exchange and its benchmark price of Gold. Similar moves are being made by China via its Shanghai Gold Exchange.
When alternative mechanisms exist for the global pricing of Silver and Gold, the LBMA and COMEX will lose the ability to control Precious metals prices by simply selling futures contracts that have no actual metal backing them.
New BRICS Currency
Analysts suggesting that BRICS will announce a Gold backed Currency point at the UNIT as the possible mechanism for doing so.
If you look on the web you can find the white paper describing the UNIT (or go to unitfoundation . org and download it).
As it is currently being proposed, the UNIT would be a basket of BRICS currencies along with 40% Gold. Including Gold in the basket makes sense because this would instantly add legitimacy to the brand-new Currency.
Remember what I said earlier about no entity willingly choosing Gold as backing for their Currency. In the case of the UNIT, Gold would be chosen out of necessity in order to rapidly create an international settlement Currency that countries can trust.
Human beings have a long history with Gold. The yellow metal has been used as a circulating currency for 2,600 years. Before that, humans used Gold as a store of value in their treasuries and, because of its beauty, used it for artwork and personal adornment.
There is evidence that humans have been refining and using Gold for at least 6,000 years. Given this history, it isn’t (or shouldn’t be) surprising that Gold would play a key role in any new Currency.Gold as Currency
Let’s perform a thought experiment now and pretend that we are creating a Currency that will be backed by Gold or tied to Gold in a manner similar to the UNIT.
When we sit down at the kitchen table we need to start with these facts:
- Global M1 money supply is $48.9 trillion as of late-2022. M1 includes Fiat Currency in circulation, travelers checks, checking accounts, and savings accounts.
- Global debt is $305 trillion as of late-2022.
Using these numbers as a starting point we would want our Currency to accommodate at least $50 trillion (global M1) and potentially $350 trillion (global M1 plus global debt) in value.
Because of the magnitude of these numbers, we would probably decide that the current price of Gold ($2576 on 09/16/2024) isn’t high enough.
After some discussion we might decide that an initial price of Gold at $5,000 an ounce made sense. For our Currency to succeed we must be willing to buy Gold at the price we set, so we don’t want that price to be too high.
Now we launch our Currency on a Friday afternoon after the markets have closed. When the World wakes up Monday morning the new global price of Gold is $5,000 per ounce.
In a price chart of Gold this action would look like a stairstep as price jumped vertically from $2,576 to $5,000.
After two or three years of running our thought experiment, we might discover that a $5000 price of Gold was no longer working. In response, we could increase the price to $8,000 or $10,000 an ounce to ensure the viability of our Currency.
Obviously, this reset would create another stairstep in the Gold price chart.
Jim Sinclair, also know as Mister Gold, talked about the potential for stair stepping action in the price of Gold. He also predicted that Gold would reach $74,000 an ounce after multiple stairsteps higher.
Wrapup
It’s fun to think about potential price targets for Gold. Hopefully you’ve enjoyed this discussion. Watch the video for an in-depth explanation of how these Gold price predictions were reached. If you are interested in Technical analysis of price charts, you will learn about Flag patterns, Cup & Handle patterns, price channels, MACD, Stochastics, Andrews pitchforks, and doubling the range.
