Gold is now at $1600 per ounce. I’ve stated before, I believe it’s in bubble territory but there are those who think gold is going higher, not just a bit higher, but to $57,000 per ounce. I don’t want to link to such forecasts, just google ‘gold to $57,000’ and you’ll find a number of articles on this.
Let’s look at how such a forecast isn’t just absurd, it’s mathematically impossible.
The total wealth in the world is approximately $125 trillion. This number is a few years old, but close enough for our purposes.
The total amount of gold mined to date is approximately 5 billion ounces, or $8 trillion at today’s price. If gold were to go to ‘only’ $25,000 per ounce the value of gold alone would be as much as everything else in the world. All stocks, cash, bonds, real estate, etc. Would it make sense that such a thing could be possible? Yet, these people sound so convincing, one wonders if they believe what they are saying, or if they are just scamming us all. Have they done the math?