Despite the fact that gold has been trading below the $2K range since May 16, 2023, Rick Rule, the founder of Rule Investment Media, is confident that the struggling United States economy will cause demand for precious metals like gold to skyrocket. In an interview published on May 18, Rule emphasized that people’s anxiety about the purchasing power of conventional savings methods has always been the main factor driving gold prices. Reports by Rule, this tendency is very likely continue, and he predicts that demand for gold will increase by fourfold in the near future.
Rick Rule Forecasts Fourfold Boost in Gold Demand Amidst Worldwide Economic Uncertainty
Amidst a turbulent worldwide economy, both precious metals and cryptocurrencies have seen a surge in value in 2023. On May 3, 2023, gold’s price per ounce came awfully next to surpassing its record-breaking peak, reaching $2,056 per ounce. Nonetheless, the precious metal’s value has since taken a hit, plummeting to a low of $1,954 per ounce on May 18. As of today, May 22, 2023, gold’s price per ounce is hovering at $1,973, marking a 1.6 percent decrease in the previous 30 days.
In a recent interview with Kitco News host Ernest Hoffman, Rick Rule, the previous CEO of Sprott Holdings and founder of Rule Investment Media, shared his opinions on gold’s recent surge value. Reports by Rule, this is just the beginning. He thinks that people’s fear of losing purchasing power has always been the primary factor driving gold’s value. “What’s always driven the gold price, greater than anything else, is people’s concern about the maintenance of their purchasing power in more conventional savings instruments,” Rule stated to Hoffman. Rule added:
There is nothing that should worry savers greater than interest prices which are insufficient to keep pace with inflation.
Additionally, Rule urged people to consider the capacity for gold prices to soar substantially greater. He pointed out that precious metals-related assets as of now make up less than half of one % of all savings in financing investment classes in the United States, whereas the four-decade average market share is two percent.
During the interview with Hoffman, Rule likewise emphasized that the present economic climate, characterized by interest price fluctuations, quantitative easing (QE), and other financial mismanagement by policymakers, will only increase demand for gold. Rule said:
If that’s correct, demand for precious metals-related assets will increase fourfold, which is precisely what I think is going to happen.
Rule’s perspective is not unique between investors who believe that gold is poised for a meteoric boost. UBS, a prominent financing bank, predicts that gold will reach an record-breaking peak in the year, while a recent Gallup Poll of Americans revealed a surge in interest in gold assets for longstanding savings. In addition, first-quarter statistics indicate that central banks worldwide have been purchasing gold at a “record-breaking” pace in 2023.
