A Growing Number of Analysts Said: "Gold is Going to $10,000"
The predictive accuracy of analysts and their forecasts has been rather dismal historically and they’re known to miss the mark, often by a wide margin. In fact, whenever so-called “experts” share their predictions with solemn confidence, combined with specific numbers and precise times, we generally tend to smirk and move on. But then, maybe, just maybe, this time really will be different…
While at Global Gold we strongly believe in the case for gold as a solid hedge against the monetary and fiscal madness we have been witnessing for years, in conjunction with the now accelerating societal challenges and tensions, we are not prone to sharing predictions and price forecasts. Nevertheless, a growing number of prominent commentators and seasoned investors are now aligned in their predictions, just as they did several years back in the forthcoming article.
Gold recently breached the $1’800 per ounce threshold for a few hours and it’s at approx. $1’781 per ounce as we write this post. As depicted in the chart below, the upward trend that started two years ago continues unimpeded by the brief setback in March.
In an article written by Lorimer Wilson in 2010, and published on Mining.Com, 10 analysts, or should we say “gurus”, were cited. Amongst them you will find our good friend Harry Schultz, as well as other well-known gold experts such as Peter Schiff, Egon von Greyerz, and Arnold Bock.
Arnold Bock’s prediction at the time was possibly the bluntest: “No wishful thinking here!” said Bock. “As I see it gold is going to a parabolic top of $10,000 by 2012 for very good reasons:
a) Sovereign debt defaults,
b) Bankruptcies of “too big to fail” banks and other financial entities,
c) Currency inflation and devaluations,
d) Precious metals market manipulation,
e) Insufficient physical supply, and
f) The need for a safe haven investment refuge.
“All of the above will lead to rampant price inflation and drive precious metals bullion and mining stocks to unimagined heights.”
Well, in an uncontrollable, runaway inflation scenario, Mr. Bock’s expectations seemed far-fetched for them. But with the multitude of new problems we are seeing today, the $10,000 price target might still not be entirely inconceivable in the future.
We found Harry Schultz’s analysis particularly interesting. He saw gold going up eventually to $6,000, stating the following - might history try to rhyme?:
“We (collectively) are poised at a heart-stopping moment in economic times. On the one extreme side, the world is on the edge of massive deflation and depression. At the other extreme is – hyperinflation. My view is that both these extremes are possible. Certainly, deflation is, on balance, in play today and gaining ground as money supply is actually declining! Hyperinflation seems impossible when there is not much inflation in most economies. But … hyperinflation is a monetary event, not an economic one, and will happen on an overnight basis, not via a general uptrend in inflation data… As I write, gold is holding very near its high, as most stock markets are bungee jumping. This implies the unexpected hyper is pending, because if it were exclusively deflation ahead, gold action would be less buoyant.”