$10K Gold by Mid-2027: Jim Rickards Makes the Case

Renowned financial expert Jim Rickards believes gold could reach $10,000 an ounce by mid-2027. According to him, this prediction is based on a pattern he used before to call the 2015 bottom within $20 an ounce.

Rickards points out that each $1,000 step gets easier because it's a smaller percentage gain. For example, gold moving from $3,000 to $4,000 is a 33% gain, but a move from $9,000 to $10,000 is only about 11%. He calls this 'anchoring,' where investors focus on the dollar amount instead of the shrinking percentage.

Rickards argues that the same fundamentals driving gold higher remain unchanged: steady central bank buying, flat mine output, and rising geopolitical risk. He notes that central banks are net buyers, led by China, Poland, Kazakhstan, and Uzbekistan. Mine output has been holding near 3,600 to 3,700 tonnes a year for some time now.

He also believes the Fed's latest rate hike was a mistake because it targets inflation the Fed can't actually reach. Rickards draws a sharp line between nominal rates and real rates, arguing that monetary policy barely reaches any of the three sources of inflation: cost-push, demand-pull, or fiscal.