Gold Will Reach New Highs

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Gold Will Reach New Highs

Gold Will Reach $7,000 Over The Long Term

The US debt is at historic levels, which has once again highlighted the problem with fiat currency. It all started when the Dollar was unpegged from Gold.

This meant the government could print more money and thus also increase its spending. So, instead of cutting down on spending or increasing taxes, they just printed more money. The government also started to rely on the Federal Reserve to finance any shortfall.

Us Government Debt At Record High Levels

Today, it's been more than 55 years since the Gold standard was abandoned. A quick look at the US government debt shows that it is now standing at $37.5 trillion, which is almost 124% of the US GDP.

Meanwhile, the global debt is now sitting at $324 trillion, which is equal to 235% of the world's entire GDP. In short, things have gotten out of hand, but we just don't realize it yet.

And it's not just the US government that is sitting on a large pile of debt. The household debt is also near $18.39 trillion, which is also a record high.

So, with things considered, it makes sense to keep a portion of your holdings in Gold. According to one analyst, the Gold prices will reach $7,000 by the end of Trump's 2nd term.

But why are gold prices headed towards the $7K level? The first reason is the massive debt pile, which just keeps rising with no end in sight.

Also, the fiscal imbalance continues to widen, and the monetary policy is also not ideal. Amidst all of this, the US Fed is also stuck as it can't raise the interest rates without bankrupting the US government.

All of this means the only way for the Gold is upwards! If we look around, even the central banks are buying physical gold bullion. This shows that even the central banks know about the risks and are making preparations for the worst-case scenario.

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