(Kitco News) - Extremely dovish monetary policies around the world and economic conditions could propel gold prices much higher, to even $10,000 over the long-term.
"I think it goes up to $10,000. I don't think it's going to happen in the next 12 months, but I think the supply of gold, peak gold is there. The supply of gold is not growing. GDP per capita is still strong in China and India and Southeast Asia. 60% is bought for love, and that's a steady demand for gold," Holmes said.
He added that we are now in a paradigm shift where the Chinese have shifted from being market takers of gold to being market makers.
"Recognize that the gold traders are no longer in London, [who were] basically the price makers, the Chinese are [now] the price makers, they used to be the price takers, and that is a paradigm shift," Holmes said.
Holmes said that the world doesn't have to see war in order for gold prices to climb to those levels.
"It's just a slow debasement of currencies, art is going to do exceptionally well, and real estate," he said, adding that according to a Morgan Stanley report, the best performing asset in the last 20 years has been real estate, followed by gold.
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This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.