$7000 Gold/ guess date

Sounds like the kind of predictions you get when a top is being formed.

Moves of that magnitude would rival or exceed the moves in the 1970's and 2000's which were from depressed price troughs. Anything is possible, but it would seem to be too much too soon.

$7,000 by 2030 and $10,000 by 2035 (2040 ?) seem more doable. But the market doesn't care what I or other experts think, it'll do what it's gonna do.

 

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The obsession with gold is misplaced by both individuals and CB's. Gold USED to be synonymous with wealth and economic growth but that was when we were on a mercantilistic barter system and gold or precious metals/gems gave one the ability to command other goods and services.

Remember....per capita GDP growth was STAGNANT and lifestyles did NOT IMPROVE for multiple centuries until the Industrial Revolution began to lift all boats.

Thinking that you can improve your economic status by accumulating gold is Fool's Gold (pun intended ). Even today, you have bureacratic monstrosities like the EU strangling GDP growth and productivity and other countries thinking they can tariff their way to prosperity.

Bitcoin can go to $1,000,000 or fall to $10,000 -- means zip to me. Unless Saint-Gaudens or Liberty Head DEs or other gold coins were struck in the form of a Bit Coin....I don't care.

 

The UK Telegraph has had a good read on the Russian economy.

Right now, even with the rise in oil prices (and it should be back to the $50's in a few months, Russia is barely getting $45 a barrel. They need $70 to pay for the war and were getting $90 back in 2022.

 

Cheap oil price is much needed to crush the Russian economy as well as revive the global economy. What's absurdly rotten is that if you account for inflation, CRUDE oil is much cheaper compared to a decade ago. It's bluntly clear that cooperate greed just doesn't pass savings down to consumers. I rather have cheaper living expenses compared to elevated metal prices. (ok a bit off topic)

I do not believe articles where journalists claim the Russian economy is about to collapse. Writing sensational articles of what the West wants to believe in but has yet to happen. That is almost 4 years straight. Much easier to listen to a broken record on repeat. Right now Russia can just pivot to gold and keep mining aggressively if metal prices remain elevated. Russia does have large amount of natural resources. It's much easier to smuggle gold out of the border compared to barrels of oil. You can't tell the source of origin once it's smelted down unlike crude oil where you can trace chemical composition.

The key difference between when the Soviet Union fell and this time around is back in 1990s both crude oil and gold prices were stagnant, if not suppressed. That meant that there was not much value Russia could export back then, effectively bankrupting the country. This time around? Exporting a mere metric tonne of gold is about 165 million USD at today's price. Even a compact SUV would weigh more than that! Maybe Goldfinger is a good reference.

One classic example where high metal prices can backfire in society. One might think high copper price helps to spur mining activities. Yes to certain extent. That encourages 'urban mining' and when you get blackout - who pays the price. Last thing I would like to imagine is one ends up stockpiling golden bullets, whether it's literally or figuratively.

Don't get me wrong. I am not disagreeing about the probability of gold price remain elevated or continue to raise higher in the short term. My genuine concern is the absurdity of investors thinking that high price is a good thing without a care of ethics or moral. Blood diamond comes to mind.

 

They've sold about 2/3rds of their gold reserves and are getting $25 a barrel less than they need from oil sales.

Russian economy is on life support.

 

But.....
You can see that the Russian economy is REALLY in big trouble. Their infrastructure is literally falling apart. Since Feb. 2022, Putin has diverted trillions of roubles into SMO.
Losses in materiel is staggering, 30 warships, 2 subs, 350-450 aircraft, 360 helicopters, 12K tanks, 14K armored personnel carriers, thousands of air defence systems, 80K trucks, etc. Just the cost of death benefits is second highest cost to budget. Then the cost of all those refineries, pipelines, gas/ oil terminals that Ukraine keeps smoking every week. The Russian economy is 2% considering Germany / EU is 50%. The good guys CAN bankrupt Russia easily. If Trump would sign Lindsay Grahams sanctions bill, Russia would collapse this year. And China is only paying them $32 a barrel, since they have Putin, "over the barrel"
With production losses at 45%, they still cannot find buyers, India now buys Saudi oil. In 2027 the EU will FINALLY cut off ALL Russian energy. I think the opposite, the West is even down playing the facts, the Russian Propaganda machine is good at "FAKE NEWS" Just remember how the Russians told Trump they encircled 10K Ukrainian soldiers in Kupiansk, well next day Zelenskyy went there, in front of sign, to dispell another Russian myth. Matter of fact, it was Russians trapped there, now thy are all KIA.