Mark Skousen: This Is the Only Way Gold Breaks US$2,000 and Stays There
Mark Skousen, a world-renowned economist, has predicted that gold will break the US$2,000 mark and remain there. Skousen is known for his advocacy of free-market economics and his work on forecasting gold prices and other financial instruments. He believes that gold is poised to reach the US$2,000 mark by the end of the year and remain there in the near future.
Skousen believes that the US dollar is in decline due to economic policies from the Federal Reserve and Treasury that have caused additional money printing. This money printing weakens the US dollar’s value, and as a result, gold has surged in price. Additionally, geopolitical volatility has strengthened gold’s role as a safe haven security amid its natured relationship with the US dollar. With central banks continuing to purchase gold and weaken the US Dollar, it has created a significant opportunity for gold prices to break the US$2,000 mark.
So, what could be the specific event or catalyst that would cause gold to break the US$2,000 mark? According to Skousen, the key is a “political crisis” that will address a major conflict between the United States and China. This crisis could involve an escalation of the ongoing trade dispute, skirmishes in the East and South China Seas, or even a period of significant turbulence in the European Union. If any of these scenarios come to fruition, it could cause a significant drop in the US dollar, and therefore, a surge in the price of gold.
Furthermore, Skousen believes that breaking the US$2,000 mark is only the beginning. He predicts that the price of gold could climb to as high as US$3,000 in the not so distant future. To ensure that gold maintains its value, however, Skousen suggests that people purchase physical gold as opposed to derivatives such as paper gold.
All in all, it is clear that Mark Skousen is bullish on gold prices and hence, believes that breaking the US$2,000 mark is imminent. If the right precursors come into play, whether it be a US-China conflict or geopolitical unrest, an economic crisis could weaken the US Dollar, and ultimately, drive gold prices higher. With this in mind, potential investors must understand not only why Skousen believes gold will reach US$2,000 in 2020, but also why they must be prudent with their investments.