🤔If history is any guide, we could be heading toward $4,000 gold. This according to analysis by US Global CEO Frank Holmes.
Holmes recently appeared on Kitco News and showed how the price of gold has historically correlated with the expansion of the Federal Reserve’s balance sheet. We’ve already seen the balance sheet balloon by over $3 trillion in response to the coronavirus pandemic and it currently stands at over $7 trillion. Holmes said he thinks the central bank will likely grow its balance sheet to $10 trillion before all is said and done. Given the historical trends, that’s extremely bullish for gold.
In the next three years, if we look back, if [history] repeats itself, from 2008, 2009 to 2011, that three year run from ’09 saw gold go from a $750 – $800 range up to $1,900. If we forecast that because we have the same expansion of the balance sheet of the Fed then it would project, if cycles are exactly the same, gold could go to $4,000.”
Holmes recently appeared on Kitco News and showed how the price of gold has historically correlated with the expansion of the Federal Reserve’s balance sheet. We’ve already seen the balance sheet balloon by over $3 trillion in response to the coronavirus pandemic and it currently stands at over $7 trillion. Holmes said he thinks the central bank will likely grow its balance sheet to $10 trillion before all is said and done. Given the historical trends, that’s extremely bullish for gold.
In the next three years, if we look back, if [history] repeats itself, from 2008, 2009 to 2011, that three year run from ’09 saw gold go from a $750 – $800 range up to $1,900. If we forecast that because we have the same expansion of the balance sheet of the Fed then it would project, if cycles are exactly the same, gold could go to $4,000.”