Gold prices could reach… 300 million VND per tael.

Currently, a wave of replacing the US dollar as the primary means of international payments is emerging. In particular, the strong moves by BRICS – a bloc of major emerging economies including Brazil, Russia, India, China, and South Africa – further demonstrate this desire. If this happens, gold is predicted to soar.

Willem Middelkoop, founder and CIO of Commodity Discovery Fund, told Kitco News that the international monetary system is "artificial" and that it can be changed.

Gold prices are on a sharp upward trend, but many are still surprised that the precious metal is predicted to reach 300 million VND per tael (approximately 37.5 grams). (Illustrative image)

He said, “We could move from a dollar-based system to a new phase for the international monetary system, where we could use a new common currency.” “It might be a good idea to restructure debt and revalue gold.”

Gold is very likely to play a significant role in the new system because the amount of gold owned by central banks around the world is enormous.

“All the countries east of Germany are accumulating large amounts of physical gold. And that in itself is a clear indication that the countries expect something to happen in the monetary system,” Middelkoop said. “And even the president of the Dutch central bank said that the Dutch still have a lot of gold because you need gold to restart the system when something goes wrong.”

But the big question is which country will take the first step. Middelkoop doesn't rule out the possibility that the US will surprise other countries by having the dollar backed by gold once again.

“This is happening with China, Russia, the EU, and the US. If you revalue gold at a much higher level, you can save the balance sheets of central banks. And I still hope that will happen someday,” he said. “Who will act first? Who will start backing their currency with gold first? As a central banker, you can take very few steps to rescue this monetary system.”

Middelkoop expects gold and silver prices to experience significant shifts in the next 5 to 10 years.

“You can also look at the ratio between gold and the amount of fiat money in circulation. We’ve seen gold correct and revalue much higher…in the 1930s, the 1970s and from 2000 to 2011,” he said. “So once gold starts to appreciate and especially in a revaluation scenario, it will go up five times, eight times, ten times. So expect gold to move to $10,000.”

At a world gold price of $10,000 per ounce, the price of SJC gold would be equivalent to 300 million VND per tael.

Source: https://www.congluan.vn/du-bao-soc-gia-vang-co-the-dat-300-trieu-dong-luong-post262684.html