Gold price of $ 10,000: Is it possible or not?

Nick Barisheff, author of the book “$10,000 Gold: The Inevitable Rise and the Investor’s Safe Haven” which will be released in the fall of this year, believes a gold price of $ 10,000 will be achieved in the coming 5 years. Nick Barisheff is the founder, president and CEO of Bullion Management Group, one of the world’s fast-growing precious metals bullion management companies, based in Toronto. Click here to read the preface of Nick Barisheff’s new book or to pre-order.

During a recent TV appearance on Fox Business, he explained what the main reasoning is behind the $ 10,000 gold price. The basic reason that the price of gold goes up, is that investors lose faith in the financial system. We can take the 70’s as a perfect example; the gold price chart says it all in fact. When looking at the newspapers of the 70’s, they report that it’s the US dollar which was declining against gold. Today you see a similar situation: governments around the world are creating too much currencies. So it’s currencies which are declining, is not gold which is rising.

As currencies are valued against each other, the question pops up what would happen if Europe falls apart and the euro loses value against all other currencies. Based on Nick Barisheff’s view, the US dollar will be the last currency to fail. As other “weaker” currencies like the euro will fail, initially we’ll see a flight to the dollar and step-by-step an increasing amount to gold itself. But eventually the dollar will also be bailed.

The reason for a bail of the US dollar is very simple and logic: unsustainable levels of debt. In the US for example, it’s not only the 15 trillion of debts but also the 200 trillion of unfunded liabilities that are the total outstanding debts. On the chart, you’ll see a perfect correlation between US debt and price of gold.

The answer on the question if a gold price of $ 10,000 is possible? Based on Nick Barisheff it is very likely in fact to happen. It will take some time and the US dollar will be bailed first.


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