Gold fever is intensifying dramatically as the precious metal's price shattered the significant $5,000 per ounce barrier on Monday, reaching unprecedented heights. This remarkable surge has rekindled intense speculation that investors are preparing for profound economic instability, with few voices more prominent than Robert Kiyosaki, the renowned author of the bestselling financial guide Rich Dad Poor Dad.
Extreme Forecasts and Doomsday Scenarios
'Gold soars over $5,000. Yay!!!!,' Kiyosaki enthusiastically declared on social media platform X, before making his astonishing prediction: 'Future for gold $27,000.' This eye-watering target represents one of the most extreme forecasts circulating on Wall Street today, far exceeding the projections of most major banking institutions and commodities strategists.
Financial experts caution that achieving anywhere near the $27,000 mark would necessitate circumstances far more catastrophic than current inflation concerns. Andrew Glass, founder of Avatar Commodities, outlined to Daily Mail the kind of apocalyptic scenarios that could drive gold to such extremes, stating: 'US is in civil war, China's taken Taiwan, Russia's gone after NATO.'
Monetary System Breakdown Concerns
Other analysts point to a complete collapse of the global monetary system as the only plausible trigger for such astronomical gold prices. Rudri Patel, a senior financial expert at GOBankingRates, explained to Daily Mail that the United States would likely need to abandon the modern dollar entirely if gold reached $27,000. 'The United States would likely use gold to back the dollar again,' she noted, referencing a monetary policy not employed since 1971.
Safe Haven Appeal Amid Economic Uncertainty
Even without full-scale crisis conditions, the current rally demonstrates a renewed rush toward gold as the ultimate safe haven asset—one not backed by any government—at a time when confidence in traditional currencies like the dollar and conventional bonds is being severely tested.
This concern was powerfully echoed last week by Ray Dalio, billionaire founder of Bridgewater Associates, the world's largest hedge fund. Speaking at the Davos economic forum, Dalio warned that America's escalating national debt—now exceeding $38 trillion—is making gold increasingly attractive to savvy investors.
The Debt Dilemma and Gold's Resilience
When governments accumulate excessive debt, they often resort to weakening their currencies or maintaining artificially low interest rates to manage their obligations, a strategy historically favoured by figures like former President Donald Trump. Gold, in contrast, typically maintains its value during such periods precisely because no government controls its supply. Unlike paper currency, additional gold cannot simply be printed into existence.
Dalio described gold as essential insurance for personal savings—a protective asset that can safeguard wealth during turbulent times. Beyond protection, gold also presents profit potential. As anxieties regarding national debt, persistent inflation, and political instability intensify, more investors are allocating funds to gold, creating upward price pressure.
Unprecedented Price Momentum
Since the beginning of the current administration, gold prices have skyrocketed by more than 80 percent, consistently breaking historical records. By 6pm Eastern Time on Monday, gold was trading at $5,004 per ounce, having briefly touched $5,100 earlier that day—a staggering increase from the $4,000 level reached just last October.
Kiyosaki attributes gold's ascent directly to America's ballooning national debt. The 78-year-old financial educator stated he remains unconcerned about daily price fluctuations 'because I know the national debt of the US keeps going up and the purchasing power of the US dollar keeps going down.'
Global Ripple Effects
Glass further explained the wider global consequences of soaring gold prices, including cocoa shortages in Ghana and increased violence in Ethiopia driven by illegal gold rushes. 'As the price goes up there's going to be more people turning a blind eye especially where the lights are dim,' he remarked, highlighting security vulnerabilities in poorer regions where gold mining offers lucrative but dangerous opportunities.
Mainstream Investor Behaviour
Ordinary investors appear sufficiently concerned about economic prospects to purchase gold even at current record highs. Hunter Rhodes of Atlanta Gold & Coin Buyers told Daily Mail: 'At the moment, there is absolutely no resistance with gold being at an all-time high.' Many of his clients, he reported, are divesting from volatile stocks and other assets to 'park their funds into something they perceive as being a safer and more secure investment.'
This collective movement underscores gold's enduring status as the ultimate financial sanctuary during periods of profound uncertainty, with its latest price milestone serving as a powerful indicator of growing global economic apprehensions.
