More And More Wild Gold Forecasts Are Popping Up

Gold has seen big gains so far this year, and just about everyone agrees that it has more room to move up. Recently, I've been seeing a ton of forecasts that just seem far out there. You know, the people saying that gold can climb to become thousands of dollars per ounce. For example, I came across an article at TheStreet that said it wasn't far-fetched to expect to see gold prices increase by 500%. That would mean that the price of gold would rise to more than $6,500 an ounce.

The More These Forecasts Come Out, The More They Seem Less Far-Fetched

I'll be honest, when I saw the first person saying that gold could climb to become more thank $5k per ounce, I disregarded the concept. However, we're seeing more and more of these stories, and as we dig around, they seem more and more realistic.

The One Commonality To All Of These Forecasts

While the experts offering outlandish forecasts on gold have many different opinions on minor factors, when it comes to the major catalyst, they all have common views. It all revolves around global economic conditions and what we're seeing from central banks.

Central banks around the world have been scrambling for some time now. Many of these banks are reducing interest rates, some even making it to negative territory. This is a short-term patch for economic conditions, but in the long run, it can lead to even bigger issues.

When central banks reduce their interest rates, what they're really doing is devaluing their currencies. Think of it this way... When interest rates are increased, more money is printed, but in the fiat currency world, there is nothing backing this money. All it really is, is paper!

The Economic System Around The World Needs To Change

Experts and gold investors argue that the economic system is broken. Let's face it, it's hard to argue otherwise. Nonetheless, this is where things get most interesting. These experts are arguing that because the global financial system simply isn't working, in order to fix things, we are going to need to revamp the entire system.

These experts argue that when the global financial reset happens, it is going to need to include precious metals. After all, gold and silver were some of the world's first currencies, and throughout history, they have maintained their positions as some of the world's strongest.

This Reset Could Lead To Massive Gains In Gold

If a global financial reset were to happen, I have to agree that it would likely include gold as backing. Think of the implications of this. If most developed countries around the world start purchasing massive amounts of gold in order to back their currencies, demand for gold is going to spike dramatically. In order to back the world's strongest currencies, a massive amount of gold would need to be purchased. At the end of the day, this could send gold skyrocketing by many multiples of its current price. The big question is whether or not a financial reset needs to happen. However, as global economic conditions continue to spark fear among investors, analysts, economists, and consumers alike, it seems more and more likely to happen.

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