My New Gold Price Mantra: $2,500 by 2025

We check in today on gold. It has climbed to yet another all-time high.

Gold approaching $2,300 per ounce is troubling news for some…

I mean, it’s fantabulous news for those of us who’ve been in the know for a while and have been methodically scooping up gold here and there to protect our portfolios against the monetary rages to come…

But the fact that gold is living up to our expectations is sad news for America.

See, gold continually hitting a string of all-time highs—as it has been doing of late—means the world’s gold buyers are loudly proclaiming that a crisis is increasingly likely.

Most importantly, they’re focused on a crisis spinning out of the US dollar and America’s voluminous debts…

Gold buyers aren’t like the rest of the investment world.

They’re naturally cagey and inherently concerned about the destruction of fiat currency.

They connect dots others don’t see, refuse to see, or willingly shrug off as “not gonna happen.”

Funny thing, though: All along the way, the “not gonna happen” continues to happen.

Not that gold buyers are surprised.

We know what’s what.

We see precisely what’s wrong with the status quo.

And we know the status quo is literally never static. It’s always changing.

Sometimes those changes take place over years or decades, but they take place nonetheless.

Gold’s changing status quo began in the spring of 2001, in the range of $255 per ounce. At that point, gold launched into what has been an epic, 23-year run that has seen the metal nearly 10x in value.

Gold’s epic run.

For the last few years, I’ve been telling Field Notes readers and Global Intelligence subscribers that a $2,500 gold price was coming, despite naysayers panning gold as a useless and archaic rock.

We could very well see $2,500 before 2025 arrives.

Maybe that will be my new mantra: $2,500 by 2025. Catchy.

But back to today’s dispatch…

During gold’s epic run, what did the dollar do?

Well, a greenback from 2001 today will buy you just $0.57 worth of goods and services. Your purchasing power is down 43%.

That same dollar turned into gold back in 2001 would have increased your purchasing power by 5x.

The power of gold in action.

I see it in my own portfolio.

I was rooting through an Excel spreadsheet where I track my assets, and the physical gold I own in a safe-deposit box (a mid-five-figure value) is up 67% over the last decade or so.

The dollars in my bank account, however, have lost 26% of their purchasing power.

I could have a mid-five-figure saving account today, but it would have the purchasing power of a low-five-figures account.

Disheartening—when you consider all the effort that goes into working for your wealth, only to realize the Federal Reserve is destroying your wealth on the daily.

But I can sell my gold (I won’t, just to be clear), and my purchasing power would dwarf the savings account.

Again, I’ll say it: That’s the power of gold.

Thing is, this situation isn’t going to change.

The last 20-ish years have not been an anomaly.

Gold buyers have spent the last two decades actively reacting to America’s worsening situation by continually and methodically loading up on gold.

That’s guaranteed to continue.

Uncle Sam’s debt fiasco is not suddenly going to reverse course.

We will not suddenly see the political clowns in D.C. find financial religion and begin the long, arduous, and painful process of atoning for decades of Congressional spending sins.

The dollar is not destined to rise against inflation. Just the opposite, actually.

The Federal Reserve needs inflation to do its part in helping Uncle Sam manage his debts as best he can before the Come to Jesus Financial Revival kicks off later this decade.

So your purchasing power and mine are destined to erode as inflation constantly eats away at the dollar’s value.

And as that’s happening, you can bet that gold is going to rise more and more and more.

My message to you: Pack your portfolio with gold.

I have about 20% of my entire net worth, and about 34% of my largest retirement account in gold. That doesn’t include those gold coins stuffed into a safe deposit box.

You might not feel comfortable with that much gold in your financial life, and that’s fine. Just find a number you are comfortable with and add to your holdings on days when gold is in the red.

Because the green days are certain to drive gold to a string of new all-time highs going forward as the dollar loses more and more of your purchasing power.

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