$10,000 Gold May Be Too Conservative A Target

Henrik Zeberg thinks $10,000 may be too conservative of a price target for gold up ahead, with the caveat that we’ll see a lot of pain before we get there, both in commodities and the broad market. Henrik sees a deflationary bust on the horizon that will wipe out most asset categories, before stagflation takes hold, the Fed intervenes, and commodities skyrocket to previously unimaginable levels.

This summary of a post by Hendrik Zeberg has been edited ([ ]) and abridged (…) for the sake of clarity and brevity to provide a faster and easier read.

In his 38 minute video Zeberg predicts that:

1. 1. The end of a long bull market is ending fueled by excessive money printing by central banks;
   2. a major market correction is coming, with the S&P 500 potentially reaching 6,000-6,300 before a significant decline;
   3. the Nikkei index in Japan could see an even steeper decline of 80%;
   4. a potential deflationary bust followed by a stagflationary environment;
   5. a resurgence of risk assets after the FED intervenes, followed by another downturn;
   6. in the long term, gold will play a major role in a potential new reserve currency basket.

In addition, he:

1. cautions investors against holding onto gold during the deflationary bust due to a potential price decline;
2. recommends a diversified approach with commodities potentially performing well after the initial correction and
3. recommends holding cash, bonds, and the US dollar during the deflationary phase.

Conclusion

Zeberg’s forecast of a market crash followed by a commodities super-cycle underscores the need for investors to adopt a cautious and diversified approach. While the potential rewards of a commodity boom are enticing, the risks associated with the impending market downturn cannot be ignored. As the global economy navigates these uncharted waters, careful analysis and strategic decision-making will be crucial for long-term success.