$2500 Gold Will Be a Reality in 2023 as Strong Inflation and Weak Equities Push Investors into Precious Metals
The comments below are an edited and abridged synopsis of an article by Kitco News
Retail investors will move into gold once the reality of high inflation and weak equities sets in, while the absence of regulatory clarity limits gold’s gains on the blockchain, according to Deven Soni, CEO of Matador Gold Technologies, a company that enables physical gold purchases using blockchain technology.
Soni sees the crypto and gold communities coming at the same problems with fiat currencies and central bank policies from different directions. He says the gold investment community is waiting for clear regulations that protect them before they fully embrace gold on the blockchain.
Investors have watched many blockchain-based projects wind down after losing the uphill battle of fighting regulators. “It’s such a big challenge for companies, because you’re a startup, you’re starting something innovative, you’ve got a big idea,” Soni said. “You don’t want to be fighting the technology war, the customer acquisition war, and be fighting a regulatory battle at the same time.”
Soni believes that even though blockchain technology provides the opportunity for self-custody and transparency, physical gold still enjoys an edge in trust based on its track record.
He said that the record-setting pace of central banks’ gold purchases will continue, because it’s being driven by long-term economic concerns.
Soni believes some countries will go as far as launching gold-backed central bank digital currencies (CBDCs), and the early adopters will be countries that must find a way to support their collapsing fiat currencies.
Given the factors working against currencies and traditional investments, Soni has a strong gold price target for this year.
“Personally, I see a 20% to 25% increase in 2023, so let’s call it $2,400, $2,500, somewhere in there,” said Soni.