$PAXG
🥇 Can gold reach $20,000?
Kevin Smith, founder of Crescat Capital, believes gold could reach this level within about four years, based on the expansion of the global money supply by roughly 7% annually over 22 years, compared with growth in gold mine production of about 1.5% per year over nearly a century.
This comes amid strong demand: central bank purchases have nearly reached 1,000 tons annually in recent years, while gold funds attracted $18 billion in August—the second-largest monthly inflow on record. At the same time, global debt has surpassed $365 trillion, and U.S. debt is $40 trillion.
These factors may support gold in the long term, but the road may include corrections; strong U.S. data or expectations of interest-rate hikes could weigh on it temporarily.
🥇 Can gold reach $20,000?
Kevin Smith, founder of Crescat Capital, believes gold could reach this level within about four years, based on the expansion of the global money supply by roughly 7% annually over 22 years, compared with growth in gold mine production of about 1.5% per year over nearly a century.
This comes amid strong demand: central bank purchases have nearly reached 1,000 tons annually in recent years, while gold funds attracted $18 billion in August—the second-largest monthly inflow on record. At the same time, global debt has surpassed $365 trillion, and U.S. debt is $40 trillion.
These factors may support gold in the long term, but the road may include corrections; strong U.S. data or expectations of interest-rate hikes could weigh on it temporarily.