Speaking to Kitco News, president of Weber Global Management, Briton Hill, discussed gold’s ability to hit new all-time highs.
Indeed, the corporate president also shared his thoughts on the housing market in the United States, the factors driving gold to new all-time highs and silver to eventually hit triple digits in value, with Kitco News anchor David Lin.
When asked if he could elaborate on his thesis that gold could reach $20,000 in the next decade or so, the corporate president responded:
“Comparing the price action to the nineteen seventies, we saw gold and silver rise by hundreds of percentage points and if we saw that now you know with gold sitting at about $1,800 an ounce if we rose a thousand percent were talking $8,000 gold, $10,000 gold and that’s just if we have price action that mirrors the seventies.”
“People run to inflation hedges”
Furthermore, Hill justified his argument by adding that if the inflationary pressures do remain that we see today in the world and affecting economies, then gold could hit this price he elaborated:
“If these inflationary pressures do remain and all of a sudden we do start to see a rocking economy, and we have stagnation, people do run to inflation hedges; it wouldn’t be unreasonable to assume that we could have similar price action to the seventies. $20,000 gold isn’t out of the picture.”
Similarly, last month, eminent economist Mark Skousen warned that gold prices above $2,000 are a sign that inflation is out of control.
Indeed Hill is a strong supporter of gold as a wealth preserver and sees it as more valuable than real estate long term as he confirmed:
“I can take an ounce of gold anywhere in the world, and I can sell it immediately, where real estate if you’re in an environment where you need to come up with capital; chances are other people are trying to come up with capital as well, and that’s going to be tricky.”
Price of gold
Wednesday’s session saw gold prolong the previous day’s moderate retreat from near three-week highs. An uptick in the value of the US dollar aided in the retracement drop, which took the commodity back below $1,800. At the time of publication, the gold price per ounce is $1,794.
As a result of the overnight rise in the US Treasury, bond yields aided the USD’s recent correction drop from a nine-and-a-half-month high.
On top of all that, the dollar received some support from predictions that the Fed might potentially begin unwinding its pandemic-era stimulus in 2021; consequently, gold and other dollar-denominated commodities were hampered by this.