$9,000 Gold and Triple-Digit Silver Prices Will Come, but Do This First

The comments below are an edited and abridged synopsis of an article by Kitco News

In the long-term, investors can expect gold to climb to multiple times its current value, and silver to rally into the triple digits, but they should not count on precious metals to breakout in the short term.

$9,000 Gold and Triple-Digit Silver Prices Will Come, but Do This First | BullionBuzz
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In fact, a correction is due, and investors should take this as a buying opportunity, said Florian Grummes, managing director of Midas Touch Consulting.

“It looks like [gold will get]a consolidation on the higher levels, with one nasty little pullback where all the weak hands are shaken off, and then the next wave up towards $1,800 and then the all-time highs of $1,920,” Grummes said. “Once gold sustainability takes out the all-time high of $1,920, it can run easily a few hundred dollars farther.”

In the next five to ten years, gold could climb to $8,000 to $9,000, due to the similar macroeconomic environment that we share with the 1970s, when gold climbed several hundred percentage points, Grummes noted.

“If you look at it from a very long-term perspective, and you can only compare it to the bull market of the 1970s. Once the bull market started again in 1976, it went up for four years and it went up basically from $100 to $890, so nearly 9-fold. If you use the same ratio to today’s numbers, we would end up having gold, at some point in the future, $8,000, $9,000 gold, but we’re talking five to 10 years, I think,” he said.

What makes our situation similar to the economic landscape of the 1970s is the potential for stagflation to set in, Grummes noted.

Silver’s outlook is equally positive on a long-term basis, and investors should not worry too much about the entry point if their time horizon is sufficiently long.

“Silver has huge upside potential. It’s extremely undervalued in comparison to gold. It’s a very cheap inflation hedge. I think at some point over the next few years silver will run up against the $50 level again,” he said. “There will be another breakthrough over the next two to five years and once that happens, I think silver is off to 3-digit numbers.”

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