Morgan Lekstrom, CEO of mining company NexMetals, has warned that a gold price of $5,000 would not signal economic strength but instead mark a clear sign of systemic crisis.
He argued that such a surge would reflect a severe breakdown in debt markets, uncontrolled inflation, and an overall collapse in financial stability, as he stated in an interview with David Lin, published on June 27.
Notably, Lekstrom has previously said such extreme price levels are possible, having predicted the metal would reach $3,000 when it was trading around $2,500.
Despite acknowledging the potential for a $5,000 gold price, he emphasized that such a move would not reflect healthy demand but rather investors fleeing a collapsing financial system in search of a last-resort hedge.
“I think gold going over about $4,100, $4,200, another $1,000 move up, and that on a monetary reset type. That’s debt collapsing; that’s U.S. inflation going through the roof. That is when gold goes up to 4,000, and it will. We are at the end of that debt cycle, that debt bubble. There will be a hedging point where people are going to come back, flocking to it. I think you’re going to see first a real estate kind of crash,” he said.
According to Lekstrom, the world is nearing the end of a historic debt cycle that will unwind in a painful manner.
He pointed to early signs of strain already appearing across the economy, such as a softening of luxury goods markets as high-end buyers become more cautious about taking on debt.
Gold price prediction
At the moment, gold has briefly pulled back amid easing geopolitical tensions in the Middle East, but the asset still holds above the $3,000 mark.
At the close of the last market session, gold was trading at $3,274, down 1.6%. Year-to-date, it is up 24%.
Regarding the price outlook, Lekstrom predicted that gold will experience a brief, modest pullback, lasting from one to two weeks, before stabilizing in the $3,100 to $3,300 range.
Over the next six months, he expects a steady climb toward $3,500 to $3,700, supported by persistent inflation pressures and limited policy options to rein in deficits and spending.
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