RJ Hamster
Why Gold’s Headed for $10,000 an Ounce
View or listen in browser January 21, 2026Why Gold’s Headed for $10,000 an OunceDear Subscriber, By Sean BrodrickIt’s time for me to hike my price target on gold. Back in October 2024, I put a price target on the yellow metal of just over $6,900. But that’s too low.Why? For a simple reason: Gold is surging harder and faster than the last time we saw the yellow metal rally in an extended interest-rate cutting cycle.Back in the last big rate-cutting cycle that started in 2007, the price of gold nearly TRIPLED! That’s the blue area on the chart. The red line is the rally that started in 2024. You can see that gold has hit the accelerator.And yet, plenty of people are ready to stick a fork in the precious metals rally. The same people who will tell you “The best time to buy stocks is when they’re making new highs” will flinch at buying gold above $4,500. What freaking idiots! The trend is your friend! And this trend in precious metals is SO bullish.Still, I’m downright happy to see the bearishness. If everybody were bullish, it might be time to sell. In fact, I believe this precious metals bull market has a long way to go. Pullbacks can be bought.Here’s a chart you probably haven’t seen before — a long-term chart of the price of gold divided by the S&P 500.You can see that the last time this gold-to-S&P 500 ratio broke out to the upside, the rally lasted for a decade — and the price of gold relative to the S&P 500 increased nearly 400%. You can also see that the ratio just broke out again last year.Sure, doom-mongers will say that this ratio could rise if gold stays the same while stock prices fall. While I expect stocks to be on a roller coaster in 2026, I also expect the major indices to finish higher. Why? Because this is an election year!That means we can expect the White House to pull out all the stops to juice both the economy and the stock market. I like these odds.So, it’s time for a new target on gold.My new target for gold is $10,000.I’ve pounded the table about forces driving gold, including:Central bank buying.De-dollarization.Lack of new mine supply.Soaring federal deficits and debt. Rising geopolitical risks.Surging demand from investors worried about inflation.And $10,000 might not be the top, either. We are seeing the U.S. President lean on the Federal Reserve Chairman to slash interest rates. The last time that happened was during the Nixon administration. That economic mismanagement led to stagflation, and gold became the investment of choice. Over the course of a decade of inflation, gold soared 2,300%!Fast-forward to this gold bull. Gold broke above $2,000 an ounce in early 2024. What if America reenters stagflation due to tariff wars and White House micromanagement of the Fed? Let’s say gold rallies another 2,300%. That would bring gold to $48,000 an ounce.My colleague Nilus Mattive has done the same math.Gold in Fear & FrenzyNow, it’s important to know nothing says gold MUST rally that much. It’s just a possibility, if things go very, very wrong.But in the meantime, $10,000 is starting to look like a solid bet.My pick to ride this rally remains the iShares Gold Trust (IAU). It holds physical metal.You can see that the IAU is breaking out along with gold. If you haven’t bought it yet, don’t kick yourself thinking about all the gains you’ve missed. Instead, think about the gains ahead. If gold is going to $10,000, this is still cheap, cheap, CHEAP!And for real outperformance, consider select miners leveraged to the metal. I’ve sent my Wealth Megatrends subscribers multiple reports with recommendations on gold and silver miners. The open gains on those positions are astonishing. Just looking at the picks in one report, in less than a year, subscribers could have racked up open gains of 123%, 126%, 154%, 187% even 223%! In less than a year!I just updated those reports. You can join my readers for the next round of likely gold gains here.When it comes to precious metals, you ain’t seen nothin’ yet! Buy those pullbacks!All the best,SeanFollow us: 11780 US Highway 1,Palm Beach Gardens, FL 33408-3080, USA Would you like to edit your e-mail notification preferences or unsubscribe from our mailing list?Copyright © 2026 Weiss Ratings. All rights reserved. |
