The Newest Case for Gold

The comments below are an edited and abridged synopsis of an article by Jim Rickards

The stars are aligning for gold. A combination of geopolitical tumult, supply chain problems and inflation all point to much higher gold prices.

The Newest Case for Gold - BullionBuzz - Nick's Top Six
gold bullion in an open suitcase.3d illustration

If you believe that the war in Ukraine will end soon, that global supply chains will heal quickly and that inflation is transitory, then you’re probably in for a rude awakening. In fact, none of those things is likely.

Even if the shooting stops in Ukraine soon, something that is not at all assured, the geopolitical consequences will dominate events for years.

Putin will have asserted Russian de facto control over eastern Ukraine, if not outright annexation. Ukraine’s hope of NATO and EU membership will be permanently denied.

And the divisions in the West between the US and the UK on one hand and France and Germany on the other with respect to energy and trade with Russia will be on full display.

The Western alliance will lie in ruins. But Ukraine isn’t the only international security crisis underway.

Up for discussion: Simmering tensions; the war is already damaging global supply chains; the breadbasket is empty; good luck making semiconductors; pick your poison; a golden anchor; and the sooner you buy gold, the better

“…if gold is $3,000 per ounce and it goes up $100 per ounce, that’s a 3.3% gain. Each increase is easier because it represents a smaller percentage of the new base price.”

“But you still make $100 per ounce.”

“That’s why it’s important to buy gold now because this process is just beginning. We’ll see $100 per ounce gains on a weekly basis. Soon, we’ll see those gains on a daily basis. At $5,000 per ounce, a $100 per ounce gain is a 2% gain, which is almost normal daily volatility.”

“The sooner you buy gold, the sooner you can start to enjoy those $100 days… or maybe $10,000 days if you own 100 ounces.”

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