$10,000 Gold, $120 Silver Entirely Possible by 2030: Shiller PE Hits 40.15; Trends Remain Positive for Stocks, Metals

Following up on yesterday's post about why everybody should hold some precious metals, Jim Rickards has made this point on numerous occasions: continued 20% annual increases in the price of precious metals adds up rather quickly.

For instance, suppose gold finishes this year around $4,000 (a fairly safe bet) and silver around $50 (a distinct possibility), if they both make 20% gains in 2026, which, as a matter of fact, would be nothing compared to how they've performed in 2024 and thus far in 2025, gold would be $4,800 and silver $60. Barring any unforeseen "black swans," such as the U.S. government suddenly balancing its budget and begin repaying its $37 trillion debt (LOLOLOL, never gonna happen), World War III, or a complete crash in stocks, bonds, everything, the opportunity for $10,000 gold and $120 silver is not only well within reach, that might turn out to be at the low end of predictability.

Looking out further on the investment horizon, 20% gains in 2027 would mean gold at ($4800 + $960) $5760, ($5760 +$1152) $6,912 in 2028, ($6912 + $1382) $8294 in 2029, and ($8294 + $1658) $9,952 in 2030.

Silver's advance would be along the same lines and probably even better, especially since the gold:silver ratio needs to be ratcheted down to more traditional standards, like 20:1 or 16:1 or even 12:1. The current 84:1 is obscenely undervaluing silver, even if it is only part monetary metal and part industrial.

If silver is $60 an ounce in 2026, 20% increases over the next four years would look like this: $72 in 2027; $86.40 in 2028, $103.68 in 2029, and $124.42 in 2030. It's probably going to reach levels beyond that.

Thus, all those who just five years ago were saying that people calling for $10,000 gold and triple-digit silver were wrong, out to lunch, delusional, or otherwise full of balogna would be proven dead wrong.

What is likely to happen before 2030 is a complete washout of fiat currencies and a return to some form of gold standard. The U.S. dollar, Japan's yen, the euro, yuan, francs, pounds are not going to survive on "full faith and credit" of their respective governments for very much longer. Gold will be backing these currencies to the tune of at least 40%, quite possibly more, in order to keep some semblance of balance, fairness, and realism in international markets. Floating currencies will become obsolete. Everything will be pegged to gold and the countries with the most gold will have the best prospects for prosperity entering the third decade of the 21st century.

Economies of countries like Mexico, Argentina, and Peru, with large silver deposits, will improve. They might even decide to back their currencies with silver and gold.

The problems with such a scenario is that it's a radical change from the debt-based currencies people have been forced ot use since around 1933 and beyond. Such currencies, created out of thin air, with nothing backing them, have been printed to near oblivion, stealing away the wealth of the people. The U.S. dollar will cease to be the wold's reserve currency. It will be supplanted and replaced by gold.

The beginnings of this trend are already underway and could begin evolving at a faster pace quite soon. Rest assured that as stocks deteriorate, the wheedling operators at the COMEX, CME, and LBMA will do their level worst to see that gold and silver are punished as well, only, this time may indeed be different. More and more investors are running to precious metals from stocks. They are not running from both. Gold is now seen as the safe haven, devoid of counter-party risk and a hedge against inflation of fiat currencies. Investors are flocking to it.

By the way, the Shiller PE (CAPE) closed Monday at 40.15, clearly the second-highest level ever achieved. That was before Tuesday's drops on the major indices, but there is surely more fuel to burn in the current stock melt-up. The Dow, NASDAQ, S&P 500, and the Shiller PE will set new high marks before the year 2025 is done.

With the opening bell approaching, stock futures portend a positive open for stocks. Dow futures: +63; NASDAQ futures: +55; S&P futures: +10. Gold, $3,800, and silver, $44.35, have pulled back slightly from Tuesday's run-up. WTI crude oil is higher, at $64.35 and rising.

The trend remains higher for stocks and precious metals. Oil's move is a blip. Supply is simply larger than demand and prices will soon fall into the 50s. At the Close, Tuesday, September 23, 2025:
Dow: 46,292.78, -88.76 (-0.19%)
NASDAQ: 22,573.47, -215.50 (-0.95%)
S&P 500: 6,656.92, -36.83 (-0.55%)
NYSE Composite: 21,548.21, +5.74 (+0.03%)