Gold trading above $10,000 and silver near $300 is where President of Financial Sense Wealth Management, James Puplava sees prices later this decade, according to his Big Picture Update titled: Unsustainable.
At the turn of the century, when gold was below $300, he correctly predicted the 10-year bull run in precious metals, expecting gold to reach new all-time highs above $1000. In hindsight, he admits his call was conservative as gold nearly achieved $2000. The lesson to investors is simple: when this man speaks, you’d be wise to listen.
In this article, I’ll discuss the demographic factors supporting much higher precious metal prices and why I believe gold may be on the verge of a Major Breakout.
The Paradigm Shift
The world changed forever in 2020. Covid was the trigger, but the real reason was demographics. The largest and most productive generation the world has ever seen retired. We must understand this because baby boomers will continue to drive the economy into 2040.
One of the simplest ways to visualize the impact of the largest generation on the economy is through a long-term chart of the Fed funds rate, which tracks inflation, a byproduct of consumption and production.
Below, you’ll see inflation rising sharply from the 1950s to the early 1980s. The world consumed more than it produced as this generation came of age. Around 1980, the boomers began entering the workforce, and we shifted to producing more than we consumed. That ended in 2020 when the average baby boomer retired.
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