Gold Prices Could Skyrocket According to Egon von Greyerz

Egon von Greyerz, founder of Matterhorn Asset Management AG and Gold Switzerland, discussed potential future values for gold in an article published on his website on Monday.

Founder of Matterhorn Asset Management and Gold Switzerland, Egon von Greyerz, has shared his thoughts on the potential future value of gold, suggesting that it could reach $16,000 per ounce if it returns to its historical average relative to U.S. treasuries, and even $40,000 per ounce based on the 1979-80 levels.

In an article published on his website on Monday, von Greyerz, who is known for his focus on wealth preservation through precious metals, discussed potential future values for gold in light of historical trends and current economic conditions. He examined the possibility of significant increases in the price of gold, considering its role as a hedge against financial instability and a primary reserve asset.

Von Greyerz’s analysis suggests that if gold were to return to its historical average level relative to U.S. treasuries, it would entail a revaluation of at least six times, indicating a gold price of approximately $16,000 per ounce. This scenario highlights the potential for a substantial increase in gold's value, driven by its role as a reliable hedge against economic instability.

“The total of U.S.-held gold has on average been 40% of U.S. treasuries outstanding. Today it is only 7%,” he described, asserting:

If gold were to reach the average level it needs to be revalued 6x at least – a gold price of $16,000.

“As we enter the golden era with BRICS countries increasing their purchases continuously and central banks selling U.S. treasuries to buy gold. No country and no central bank will in future hold dollars as a reserve asset. Physical gold is the only proper reserve asset, just as it has been throughout history,” he emphasized.

Furthermore, von Greyerz explores the possibility of gold reaching the levels observed during 1979-80. At that time, gold represented 140% of U.S. treasuries, and to match this ratio today, it would need to be revalued by 19 times, suggesting a gold price of over $40,000 per ounce. He highlights that this dramatic increase is based on historical precedents and the potential for gold to regain its historical significance as a primary reserve asset. The strategist described:

If gold were to reach the 1979 – 80 level of 140% gold needs to be revalued 19x to over $40,000.

Von Greyerz also mentioned that silver could move twice as fast as gold. He clarified that these price predictions are not presented as definitive forecasts but rather as possible outcomes if certain economic conditions are met. He implies that gold’s role as a hedge against financial turmoil makes it a crucial component of wealth preservation strategies, especially in times of economic uncertainty.

“Investors should not focus on potential targets for gold or silver. Instead just think of gold as financial life insurance which just as throughout history will at least preserve investors’ assets but most probably also enhance them,” he advised, concluding: “Remember to only hold physical gold and silver stored in the most secure vaults and the safest jurisdictions.”

What do you think about strategist Egon von Greyerz’s predictions for gold prices? Let us know in the comments section below.

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