The price of gold has accelerated its upside move after completing a mega breakout, but a price target of $10,000 still awaits. Here is how the price of gold could get to that target.

$10,000 Gold
April 4 (King World News)
Email from KWN reader Kevin W:  Egon consistently refers to physical gold as % of financial assets. After his recent article on KWN indicating that figure is currently 0.6%, it made me think. 0.6% in physical gold but also maybe another 0.2% in global mining shares? Made me wonder what every $1000 increase in gold does to these 2 numbers. And what would it take to get this combined value at 5%. 

In 1980 it reached 8% before ending at 5% that year. 

Global Financial Assets ~ $250T.
Global Private Gold ~ $1.5T (21,000 MT)
Global Mining shares ~ $420B 

Now let’s assume global financial assets excluding gold remains roughly $250T while gold and mining rip higher. Based on the existing ounces of gold ounces in the hands of private parties and mining shares thereof, for every $1000 increase in gold and a corresponding move in mining shares at 3x the % increase in gold, it will add roughly $1.2T to the overall value in global gold and mining shares value. Add to that another 500MT of newly mined private invested gold in each of the next 2 years. To get to 5% of $250T or $12.5T, it will require about $10,000 per ounce of gold. 

If global financial assets swooned simultaneously by 20%, $8000 gold would bring it to 5%.

Currently global proven and probable gold reserves amount to about 59,000 MT valued at $4.3T. With their market value at only 10% on a whole, mining shares appear grossly undervalued…

Listen to the greatest Egon von Greyerz audio interview ever

Gold’s Mega Breakout
Graddhy out of Sweden:
  Been saying for 13 weeks that gold has a blue mega breakout. This means the next leg up in gold started 13 weeks ago. Many are now waking up to this.

Gold Price Target = $10,000-$15,000

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