LOS ANGELES, Jan. 8, 2024 /PRNewswire/ — A rising debt load for the United States and other countries, as well as a tendency among political leaders to spend their way out of every crisis, play significant roles in the potential further rise of gold prices, according to a new report from Lear Capital. The report, $3,200 Gold: How the U.S. Debt Trap Could Get Us There, offers timely advice for investors who want to hedge against the economic ramifications of rapidly escalating debt levels.
The report, by Rachel Mills, Lear Capital Global Finance research specialist, references some astounding numbers about the nation’s debt. For example, the current national debt level is 44.5 times what it was in 1974, rising from $725 billion to more than $33 trillion. However, gold prices have risen 55.7 times over that same period.
“Gold, often revered as the ‘ultimate hedge,’ possesses a long-term track record of hedging fortunes,” Mills wrote in the report. “In these tumultuous times, investing in gold and silver can be a prudent move, if not a necessary act of self-preservation.”
Mills estimates a $3,200 price for gold by using the U.S. National Debt Clock’s prediction that the national debt will reach more than $45 trillion by 2027. As noted in the report, if gold prices continue to outpace debt by 1.6 times, gold prices could reach $3,200 an ounce, representing a 60% increase from its current value.
“This is hypothetical, of course, but entirely possible given the decades-long relationship between gold prices and debt levels,” said Mills. “If anything, we are making sure to err on the conservative side. Any number of events could drive debt levels far higher than current projections anticipate.”
The report discusses some of those events. They include economic downturns, international tensions and conflicts, bailouts, and stimulus packages. The report also notes that debt in the world economy, currently $307 trillion, is an “economic elephant in every boardroom” that no one seems prepared to address.
John Rubino, a veteran financial analyst and investment adviser, said in a recent video on the Lear Capital YouTube channel that he looks for gold to eventually break through resistance at the $2,000 price level on its way to $2,500.
Lear Capital specializes in helping clients preserve wealth by diversifying their portfolios with precious metals. Lear Capital is not a financial planner, retirement specialist, or investment professional.
About Lear Capital
Founded in 1997 by precious metal expert and analyst Kevin DeMeritt, Lear Capital offers investors the chance to diversify their portfolios with unique approaches to purchasing precious metals, including gold and silver individual retirement accounts. Employing a team dedicated to providing investors with real-time information and pricing on gold, silver, platinum, and palladium, Lear Capital is uniquely positioned to offer investors the convenience of online capabilities with the expertise and support of a brick-and-mortar institution. To date, the team has handled more than $3 billion in trusted transactions.
SOURCE Lear Capital
