Gold price can reach... 300 million VND/tael

Currently, the wave of replacing the USD in the international payment position is taking place. In particular, the strong moves from BRICS - a group of large emerging economies including Brazil, Russia, India, China and South Africa - further demonstrate this desire. If that happens, gold is expected to "fly high".

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

Gold prices are on the rise, but many people are still surprised when this precious metal is predicted to reach 300 million VND/tael. Illustrative photo

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

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

“All the countries east of Germany are accumulating a lot of physical gold. And that in itself is a clear sign that 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 make the first move. Middelkoop does not rule out the possibility that the US will surprise other countries by making the dollar backed by gold again.

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

Middelkoop expects gold and silver prices to move strongly in the next 5 to 10 years.

“You can also look at the ratio of gold to fiat money in circulation. We saw gold correct and revalue much higher… in the 1930s, the 1970s, and from 2000 to 2011,” he said. “So once gold starts to rally, and especially in a revaluation scenario, it’s going to be five times, eight times, 10 times. So expect gold to go to $10,000.”

At the world gold price of 10,000 USD/ounce, the price of SJC gold will be equivalent to 300 million VND/tael.

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