In a recent interview on Soar Financially, the YouTube channel, renowned financial analyst John Rubino delivered a stark warning about the future of global currencies and the seemingly inexorable rise of gold. The discussion, hosted by Kai Hoffman, explored Rubino’s perspective on the current economic climate, geopolitical tensions, and their profound implications for precious metals.
Rubino, whose insights are closely followed by investors in the precious metals sector, reiterated his concerns about unsustainable debt levels and the potential for a significant currency reset. He painted a picture of a global financial system entering what he termed a “death spiral,” fueled by the increasing burden of debt servicing.
Drawing on his extensive knowledge, Rubino explained that the current practice of borrowing to cover existing debts is unsustainable. “We’ve kind of entered that death spiral part of the process where we’re having to borrow to cover our debts,” he stated, drawing a chilling parallel to personal bankruptcy. He argued that governments worldwide are engaging in similar behavior, suggesting dire long-term consequences for fiat currencies.
This precarious economic backdrop, coupled with escalating geopolitical uncertainties, is a primary driver for gold’s surge. “Gold is where we hide out in times of chaos,” Rubino asserted, highlighting its traditional role as a safe-haven asset. He further elaborated on the impact of de-dollarization efforts by countries seeking alternatives to the US dollar and the significant influence of Basel III regulations, which have elevated gold’s status in the banking system.
Perhaps the most striking prediction from Rubino is his assertion that “$10,000 an ounce gold is coming.” He explained that this figure represents a minimum estimate based on calculations of the gold required to back the world’s fiat currencies. While acknowledging that a scenario with $20,000 or $30,000 gold would be “scary” for most, he emphasized its feasibility given the ongoing devaluation of fiat currencies. “It’s a completely feasible, completely possible world, which is why, you know, we should all be acquiring precious metals.”
The interview also touched upon the gold mining sector. Rubino noted that while major producers offer stability, smaller, single-asset producers face significant jurisdictional risks, citing recent events in Panama and potential nationalization in Mexico. “That’s the kind of thing that makes you nervous if you’re an acquirer,” he commented, suggesting this caution has tempered the performance of some mining stocks.
Interestingly, silver’s performance was a point of discussion. Despite its historical tendency to outperform gold during bull markets, silver has remained relatively stagnant. Rubino believes silver presents a compelling investment case, highlighting its industrial demand, supply deficit, and its historically high gold-silver ratio. “There are reasons to think silver is interesting right now,” he stated, suggesting that “$50 silver is just about a no-brainer at some point in the next few years,” with $100 silver being a plausible target.
Watch the full interview:
