Gold Prices May Soar Tenfold to $50,000: Electrum Chairman

Thomas Kaplan, chairman and CIO of The Electrum Group, predicts that gold prices will rise tenfold to as much as $50,000 or a range of $30,000 to $40,000. He did not provide a timeline for this potential increase. Kaplan has been invested in gold since 2007, when he sold his family's energy company and bought gold at around $550-$600 per ounce.

He cited an earlier expectation that gold would rise from the $500 range to $3,000-$5,000, with a possible pullback to $3,000 before returning to $5,000. Kaplan compared the recent correction to 1987's 'Black Friday', which saw a 36% crash but later became barely visible on long-term charts.

He drew parallels with conditions ahead of the 2008 crash and stated that gold is entering a historic, multi-decade bull run that could eventually push prices up tenfold from current levels. Kaplan noted that recent data shows global central banks buying over 1,000 tonnes of gold annually, supporting the asset's floor.

He recommended using long-term call options or LEAPs to capture this long wave without getting shaken out by short-term volatility. This approach can help manage costs and protect against sudden pullbacks.