According to SBC Gold, the exponential increase in the price of gold to $3,500 per ounce has led to expectations of further growth. Some optimistic experts predict that prices will reach $5,000 per ounce.
The recent peak of $3,500 per ounce was not only an all-time high, but it also updated an inflation-adjusted maximum that had remained unchanged for over 45 years.
SBC cites the shrinking time gap between reaching key milestones as further evidence of gold's continued rise. Since crossing the $1,500 level, the interval between significant price jumps has shrunk considerably, reflecting exponential growth. The rise from $3,000 to $3,500 per ounce occurred 90% faster than the previous $500 increase.
As SBC notes, the main drivers of the yellow metal's rally such as rising geopolitical tensions, falling confidence in fiat currencies, and stagflation are intensifying. It may only take one major shock to reach the $5,000 price point. VanEck, Paulson & Co., deVere Group, Euro Pacific Asset Management, and others have already expressed this view.