2.17.26 - $10,000 Gold Supercycle?

2.17.26 - $10,000 Gold Supercycle?

Gold last traded at $4,879 an ounce. Silver at $73.56 an ounce.

Stop watching gold's daily swings and get ready for a $10,000 supercycle -MarketWatch

While gold is well off its highs of late January, I suspect the floor is about $4,500. But this is irrelevant. By the end of the decade, gold will be worth $10,000 an ounce, making today's volatility a distant memory.

There are two reasons for this. First, population declines are placing downward pressure on prices. Second, while their orientation is focused almost exclusively on fighting inflation, central banks are not equipped to fight deflation. While the tools for combating deflation are limited and straightforward - currency devaluation and printing money through quantitative easing - central bankers are averse to implementing them.

As a result, the smart money - and all the money that follows the smart money - has lost confidence in central bankers, making gold the most logical and available hedge. When I say the smart money, I point to Ed Yardeni, whom I consider to be the smartest economist in the world, and who has a similar forecast for gold by the end of the decade.

Save the U.S. and India, none of the major economies or regions is exempt from population declines and the attendant impacts. What follows are the factors afflicting each region or market. While they are diverse, the overall trend is clear: There is a systemic, global and downward push on currencies and economies and an upward push on the price of gold because it represents the most likely, liquid and available hedge for this economic downdraft.