As global concerns about inflation and currency debasement grow, investors are increasingly turning to gold as a safe haven. Legendary monetary expert Jim Rickards has shared compelling insights regarding the future trajectory of gold prices, predicting a major price surge that could see the precious metal hit an astonishing $10,000 per ounce by the end of 2026.
The Growing Divide Between Paper and Physical Markets
Speaking in a recent interview with ITM Trading, Rickards highlighted the structural imbalances in the gold market. He emphasized the vast disparity between paper gold — contracts traded on commodities exchanges — and physical gold. According to Rickards, the ratio of paper to physical gold could be as high as 100 to 1, creating a dangerous imbalance.
“As long as investors roll over contracts without demanding physical delivery, the market operates smoothly,” Rickards explained. “However, the moment physical demand increases, the system could collapse under strain.”
A Short Squeeze in the Gold Market
Rickards warned that rising demand for physical delivery could spark a short squeeze in the gold market. This scenario occurs when custodians and exchanges are unable to meet the demand for physical gold due to its limited supply. “Once that imbalance reaches a tipping point, the price acceleration will likely be unprecedented,” he added.
Price Predictions for 2026
Historically, Rickards has projected gold prices to hit $5,000 per ounce. However, recent market dynamics and rising geopolitical and macroeconomic pressures have prompted him to revise his estimates. “Seeing $10,000 gold before the end of 2026 wouldn’t surprise me at all,” Rickards stated. He explained that incremental price jumps, such as from $9,000 to $10,000, become easier once gold crosses psychological benchmarks due to basic mathematics and momentum.
Rickards also emphasized the role of central banks, which continue to accumulate gold in anticipation of currency volatility. “Once gold decisively clears the $4,000 per ounce mark, there are virtually no limits to its upside potential,” he commented.
How to Invest in Gold Today
If you’re considering gold as part of your investment strategy, now might be the time to act. Physical gold, such as coins or bars, offers tangible security, while exchange-traded funds (ETFs) and gold-backed digital assets provide liquidity and ease of access.
For instance, the SPDR Gold Shares ETF (GLD), available on eToro, is a convenient option for those looking to gain exposure to gold without the need for storage. This ETF tracks the price of gold, enabling you to invest in the precious metal with lower fees and enhanced flexibility. Disclaimer: Your capital is at risk. Ensure you understand the risks before investing.
The Bottom Line
With inflation fears, rising sovereign debt, and global economic uncertainty creating an ideal environment for gold, experts like Jim Rickards believe the precious metal is poised for a historic rally. Whether you’re a seasoned investor or new to the market, staying ahead of these trends could position you for significant gains in the coming years.
