Could Gold Really Hit $10,000 An Ounce?
By GCRU Gold News on Thursday, July 14 2016, 23:10 - Permalink
In the past, gold backed currencies helped maintain stability. However, in today’s fiat currency world, central banks are taking the easier way out. Instead of finding real cures to economic blues, they have been printing more money. At the moment, all of this money printing seems to be blowing up in he faces of the central banks.
Currently Asia’s economy isn’t doing well. Combine that with economic fears in Europe, the UK, and even the United States, and we see a broken system that needs to be fixed. As the system continues to show its weaknesses, we’ll continue to see economic struggles around the world. Of course, this will weigh heavy on the market. So, we’ll see safe haven demand from investors and consumers alike as everyone looks to gold as a way to protect the value of their hard earned currencies. This demand increase will lead to higher gold prices.
Fiat currencies, or currencies that are not backed by gold, have been a large part of how the world got into the economic mess it is facing at the moment. As a result, many experts are expecting to see a complete shift in the financial system. An overhaul of what makes money, well, money for lack of a better term.
Because gold backed currencies have been the strongest currencies throughout history, it’s arguable that the new system, if this were to happen, would be a gold-backed system. As a result, entire countries would be forced to start hoarding gold, leading to declines in supply and extreme gains in demand. If this were to happen, some experts argue that we could see gold prices reach the 5 digit mark.