Gold prices started the new week with a slight rise; experts continue to give their comments on the next price movements of the precious metal. In this article, we will share the gold and silver interpretations of Peter Krauth, the author of The Great Silver Bull. Here are the details…
The expert calculates with the ratio of silver and gold
Peter Krauth, author of “The Great Silver Bull” and Editor of The Silver Stock Investor Online, said that the price of silver will rise to $300 due to industrial demand and dwindling supply. Krauth discussed his predictions at the PDAC 2022 Conference in Toronto. Krauth obtained a silver valuation of $300 through technical analysis in his book “The Great Silver Bull.” He studied the gold-silver price ratio, among other factors. He found that this ratio was above its historical average. This indicates that there is “potential” for silver prices to rise further. The expert used the following statements:
The ratio is now 82. If you look at the last 20 to 30 years, the ratio has averaged between 55 and 60. So we’re already well above average… If you look at how it’s behaving, you can see at what levels silver can trade. So there is a chance that the ratio will drop to at least 55 to 60. This is a reasonable target. And in a speculative frenzy, I don’t understand why it didn’t go down to 15.
Krauth acknowledged that the ratio could go as low as 9, as 9 ounces of silver is mined for every ounce of gold mined. At the time of this writing, gold is priced at $1,838 and silver is priced at $21.5, indicating a gold-silver ratio above 80.
Peter Krauth expects record for gold prices
Krauth has a model in his book that predicts the price of gold will rise to $5,000 by 2030, which will drive the price of silver to $300. This is because gold is used as a hedge against inflation. Krauth used the following statements:
My thesis is to look at what happens with inflation and how other assets are damaged. So actually, since the beginning of the year, gold is basically flat. The gold’s reaching $5,000 is based on the rise in inflation and the growth in the money supply. The odds are that [inflation and money supply growth] will be significantly higher than what we’ve experienced in the last 10 to 15 years.
cryptocoin.com As we have also reported, there are many who predict that gold will rise to record levels. Krauth draws attention to this as well. He adds that he is not the only person to predict a gold price of at least $5,000. The expert used the following statements:
I’m not the only one who thinks that gold will go to $5,000, maybe even $10,000, in a speculative frenzy. There’s people like Jim Rickards, Shayne Maguire who run a gold fund for the Texas teachers’ retirement system, and there’s Scott Minerd of the Guggenheim. And there is the In Gold We Trust report, which predicts a relatively easy estimate of close to $5,000.
