Gold surges past $5,000 as finance gurus issue jaw-dropping long-term warning
Gold fever is burning hotter than ever after the price of the precious metal smashed through a fresh milestone of $5,000 an ounce on Monday.
The surge has reignited speculation that investors are bracing for deep economic trouble - and few are louder about it than Robert Kiyosaki, the bestselling author of Rich Dad Poor Dad.
'Gold soars over $5,000. Yay!!!!,' Kiyosaki posted on X. 'Future for gold $27,000.'
The eye-popping target would represent one of the most extreme forecasts on Wall Street. Most major banks and commodities strategists see gold peaking far below that level.
In fact, experts warn that a move anywhere close to $27,000 would require something far more severe than today’s inflation worries.
'US is in civil war, China's taken Taiwan, Russia's gone after NATO,' Andrew Glass, founder of Avatar Commodities told Daily Mail as he rattled off the kind of doomsday scenarios that could send gold to such extremes.
Others point to a complete breakdown of the monetary system as the only plausible trigger.
Rudri Patel, a senior financial expert at GOBankingRates, told Daily Mail that the United States would likely have to abandon the modern dollar altogether if gold hit $27,000.
'The United States would likely use gold to back the dollar again,' she said, something the country hasn't done since 1971.
Ray Kiyosaki, author of the financial self-help bestseller Rich Dad, Poor Dad, is very bullish on gold
Even without a full-blown crisis, the rally reflects a renewed rush into gold as a safe haven - an asset not backed by governments - at a time when faith in currencies like the dollar and bonds is being tested.
That concern was echoed last week by Ray Dalio, the billionaire founder of Bridgewater Associates, the world’s biggest hedge fund.
Dalio, speaking at Davos, warned that America’s soaring debt — now above $38 trillion — is making gold increasingly attractive to investors.
When governments borrow too much, they are forced to weaken their currencies or keep interest rates artificially low to make the debt easier to manage, a tactic favored by President Donald Trump
Gold, by contrast, tends to hold its value in these situations because it is not controlled by any government. More gold cannot be created in the same way more bank notes can be printed.
That is why Dalio described gold as insurance for your savings - something that can help protect wealth if things go wrong. But gold can also make money.
As fears about debt, inflation and politics grow, more investors pile into gold and pushing the price up.
In the one year since Trump took office, the price of gold has surged more than 80 percent, repeatedly breaking all-time record highs. At 6pm ET Monday it was trading at $5,004 per ounce after briefly touching $5,100 earlier in the day and having only reached $4,000 in October.
Pictured: Billionaire investor Ray Dalio at Davos
Kiyosaki agrees gold is going up because of soaring US debt.
The 78-year-old said that he didn't care about the constant price changes of gold 'because I know the national debt of the US keeps going up and the purchasing power of the US dollar keeps going down.'
Glass also explained how there were knock-on effects from the high price of gold, including cocoa shortages in Ghana and violence in Ethiopia due to illegal gold rushes.
'As the price goes up there's going to be more people turning a blind eye especially where the lights are dim,' he said, regarding the lack of security and safety nets in poorer regions where gold mining is lucrative.
The average investor also appears to be worried enough about the economy to buy gold even at record highs.
‘At the moment, there is absolutely no resistance with gold being at an all-time high,’ Hunter Rhodes of Atlanta Gold & Coin Buyers told Daily Mail.
Many of his customers, he said, are selling stocks and other volatile assets and ‘parking their funds into something they perceive as being a safer and more secure investment’.
