Here's how gold price can get to $10,000

Gold prices held steady and has fallen slightly but not dramatically, despite the threat of a stronger dollar.

According to Jim Rickards, it is likely the Fed to reverse course in April or May and to try to weaken the dollar. This would have a very positive about gold and can be expected to rise to 1300-1400 dollars by the end of the year. His forecast in a long term for gold is reaching price of 10,000 dollars. Behind this forecast remain analysis and mathematical calculations.

Gold is used as an alternative investment and the central banks of the US and Britain hold respectively 40% and 20% of assets in the form of gold.

Many people say that there is not enough gold to back the cash reserves. But according to Rickards, there is always enough gold, it's all about price.

Global monetary reserves amount to 24 trillion dollars, and global amount of gold is about 33,000 tons (without including private gold, as it is not part of the money supply). If you back 40% of the 24 trillion dollar cash reserve, the amount of official gold will be $9,000 for an ounce. Jim Rickards predicted it would be $10,000.

The question is what cataclysm has to happen in order to get gold prices to those levels. Like a snowflake can cause an avalanche after enough snow and at some point something small can crash the system in fact, as the current monetary system is unstable.

The upcoming French presidential elections could potentially break the EU. This may lead to global political shock. It is possible that some natural disaster can occur, leading to major shock.

Ultimately, there are many potential geopolitical shocks that could endanger the current system, in addition to existing concerns about the collapse of the stock market and the debt crisis.

The time to prepare is now.

Source: Business Insider

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