Based on careful analysis and historical patterns, the following factors indicate a potential for significant increases in gold prices versus fiat currencies over the next few years.
1. Today’s Gold Bull Market Trajectory
The current bull market for gold, which began in 2015, suggests that the price could increase by 1,435% over the proceeding 11 years (from 2015), pointing to a potential value of fiat $10,000-$15,000 per Troy ounce by the end of 2026.
2. Historical Gold Bull Markets Comparison
When comparing the current gold market to past trends, a strong similarity is seen, indicating the likelihood of significant price increases.
3. Moderated Gold Bull Market Assumptions
The analysis takes a balanced approach, looking at average gains and time frames from past bull markets to give a realistic view of what might happen in the future.
4. Mathematical Progression
Simple math shows that as the price of gold goes up, each additional fiat $1,000 increase becomes easier in percentage terms, which could lead to prices surpassing fiat $15,000.
5. Projected Annualized Gains
By looking at the average gains from previous bull markets, a steady increase in gold’s value over time is historically significant and anticipated.
6. Decreasing Percentage Increase
As gold prices rise, the percentage increase for each $1,000 gain becomes smaller, making it more achievable to reach higher prices.
As the price of gold goes up, the percentage increase for each additional $1,000 gain becomes smaller. For example, if the price goes from $2,000 to $3,000, it’s a 50% increase.
However, if it goes from $3,000 to $4,000, it’s only a 33.33% increase. This means that as gold prices rise, it becomes easier for the price to make larger jumps.
The decreasing percentage increase makes it more achievable for gold prices to reach higher levels as they continue to rise.
7. Market Behavior and Analysis
A detailed study of past market behavior and comparison with previous bull markets gives confidence in predicting that gold’s price could exceed fiat $10,000 per ounce by 2026.
8. Potential for Exceeding Projections
The model for projecting the fiat $15,000 price is flexible, allowing for the possibility of actual gains surpassing expectations, meaning gold could potentially be worth even more.
9. Support from Supply and Demand
While less detailed, the basic principles of supply and demand support the overall idea that gold prices will increase, potentially surpassing fiat $10,000 per ounce.
10. Plausibility Scenario
Based on historical analysis and mathematical findings, it seems likely that the price of gold could reach fiat $15,000 per ounce within the next 36 months, reinforcing the potential of surpassing fiat $10,000 by 2026.
Looking ahead, these reasons provide a strong, plausible foundation for a logical increase in gold’s value above fiat $10,000 per ounce by 2026.
This insight can help everyone understand the potential future trajectory of gold’s value against fiat currencies.
Add in the current geopolitical power shifts continuing throughout 2024 and beyond, and the deteriorating financial system we see unfolding today and the case for fiat $10,000+ gold becomes even more probable.
Supporting articles:
NOTE: THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL ADVISE. READERS ARE ADVISED TO CONSULT WITH PROFESSIONALS BEFORE MAKING FINANCIAL DECISIONS.
