Gold Bullion Predicted to Reach $10,000 an Ounce

Stack of golden coins: Metals Wired Gold Blog

On a recent episode of CNBC’s “Future’s Now,” Jim Rickards, author of The New Case for Gold, claimed that the price of gold would reach $10,000 per ounce by 2018. It’s a pretty big prediction, and some investors scoff at the idea.

However, Rickards presents interesting argument to back up his claims. Here are the main reasons for his prediction:

Expect Financial Panic Every 10 Years

Rickards suggests that every 10 years there is a major financial panic. Looking at 2008’s financial crisis and 1998’s Long-Term Capital Management failure, Rickards infers that 2018 will be the year gold prices will rally.

When the Dollar is Down, Gold Goes Up

Most investors agree with Rickards on this point. Gold bullion historically does well when the stock market falters. Rickards predicts that fiat currencies worldwide will one day lose their value due to the many geo-political issues that today’s global economies face. If that happens and faith in the dollar is lost, gold will be the only asset that can reestablish confidence in the dollar.

Gold is a Smart Investment

Whether or not you agree with Rickards’ prediction about 2018, gold is still a very secure investment. For many investors, having holdings in precious metals is a great way to secure one’s wealth despite harsh economic times.

Only time will tell if Rickards is a future-predicting wizard or totally off his rocker.