Gold Prices Poised to Skyrocket as Expert Predicts Fourfold Increase in Demand
Although gold has been trading below the $2K range since May 16, 2023, Rick Rule, the founder of Rule Investment Media, is confident that the struggling U.S. economy will cause demand for precious metals like gold to skyrocket. In an interview published on May 18, Rule emphasized that people’s anxiety about the purchasing power of conventional savings methods has always been the main factor driving gold prices. According to Rule, this trend is likely to continue, and he predicts that demand for gold will increase by fourfold in the near future.
Rick Rule Forecasts Fourfold Increase in Gold Demand Amidst Global Economic Uncertainty
Amidst a turbulent global economy, both precious metals and cryptocurrencies have seen a surge in value in 2023. On May 3, 2023, gold’s price per ounce came awfully close to surpassing its all-time high, reaching $2,056 per ounce. However, the precious metal’s value has since taken a hit, plummeting to a low of $1,954 per ounce on May 18. As of today, May 22, 2023, gold’s price per ounce is hovering at $1,973, marking a 1.6% decrease over the past 30 days.
In a recent interview with Kitco News host Ernest Hoffman, Rick Rule, the former CEO of Sprott Holdings and founder of Rule Investment Media, shared his thoughts on gold’s recent surge value. According to Rule, this is just the beginning. He believes that people’s fear of losing purchasing power has always been the primary factor driving gold’s value. “What’s always driven the gold price, more than anything else, is people’s concern about the maintenance of their purchasing power in more conventional savings instruments,” Rule explained to Hoffman. Rule added:
There is nothing that should worry savers more than interest rates which are insufficient to keep pace with inflation.
In addition, Rule urged people to consider the potential for gold prices to soar even higher. He noted that precious metals-related investments currently make up less than half of one percent of all savings in investment asset classes in the United States, whereas the four-decade average market share is two percent.
During the interview with Hoffman, Rule also emphasized that the current economic climate, characterized by interest rate fluctuations, quantitative easing (QE), and other financial mismanagement by policymakers, will only increase demand for gold. Rule said:
If that’s correct, demand for precious metals-related assets will increase fourfold, which is precisely what I think is going to happen.
Rule’s perspective is not unique among investors who believe that gold is poised for a meteoric rise. UBS, a prominent investment bank, predicts that gold will reach an all-time high this year, while a recent Gallup Poll of Americans revealed a surge in interest in gold investments for long-term savings. Additionally, first-quarter statistics indicate that central banks worldwide have been purchasing gold at a “record-breaking” pace in 2023.
What are your thoughts on Rick Rule’s prediction of a fourfold increase in gold demand? Do you agree that the struggling economy will cause a surge in demand for precious metals like gold? Share your thoughts in the comments section below.