Gold prices are currently trading around the $2,416 mark on Tuesday. A renowned financial analyst gave out an unabashed yet bold prediction for the precious metal. According to the bombastic forecast, the prices of gold are set to spike more than 10x from here.
In the bold prediction, economist Jim Rickards has estimated that gold prices could reach a new high of $27,000. The tentative timeline for the forecast is two years down the line in 2026.
A year ago, Rickards had predicted that gold prices could reach $15,000 in 2026. However, he upgraded the price target to $26,000, an increase of $11,000 from his previous prediction.
Financial analyst Jim Rickards wrote in his latest piece that after “rigorous analysis,” he also concluded that gold prices will reach $27,000 in 2026. “I don’t say that to get attention or to shock people. It’s not a guess; it’s the result of rigorous analysis,” he wrote.
Rickards revealed that his “rigorous analysis” was made using the US M1 money supply vs gold prices. “What is M1? This is the supply that is the most liquid and money that is the easiest to turn into cash,” he wrote.
“Applying the 40% ratio to the $17.9 trillion money supply means that $7.2 trillion of gold is required. Applying the $7.2 trillion valuation to 261.5 million troy ounces yields a gold price of $27,533 per ounce,” he boldly forecasted. No other analyst has predicted that prices will rally more than 10x in the next two years.
“A dollar price of gold of over $25,000 per ounce in a new gold standard is not a stretch,” said Rickards. While we agree that the demand for gold is on the rise, its price to hit $27,000 in 2026 is a bit of a stretch.
This article originally appeared on Watcher.Guru
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