Who doesn’t know the gold bug James Rickards, the author of bestselling books like The Death of Money, Currency Wars, The Aftermath, and The New Case for Gold?
The current price of gold is 2,420 USD. Rickards adjusted his 15,000 USD forecast. He believes the yellow metal might climb to 27,000 USD per ounce by 2026. Rickard’s interpretation of the precious metal market is rigorous. He refrains from sensationalism. He loves to go in-depth in his analysis. Though many would dismiss his foresight as wishful thinking, he thinks that current crises in financial markets today might push central banks to gold to stabilize the global monetary system. He identified crises like the excessive money creation, competition from cryptocurrencies, high levels of dollar debt, and geopolitical events. For him, these trends might push authorities to reconsider revisiting a new gold standard.
Rickards came up with his predicted number for the price of gold after evaluating the M1 money supply and historical gold backing standards. Based on his assessment, the current U.S. money supply would require $7.2 trillion in gold to maintain its 40% gold backing.