Gold Headed to $20,000 as Fed Remains Powerless Against Inflation and Miners Offer Biggest Upside - Crescat’s Kevin Smith

Kevin Smith, founder of Crescat Capital, argues that gold’s secular bull market stays intact despite recent swings. He cites expanding global money supply and unsustainable government debt as forces that will drive prices to $20,000 an ounce. Smith observed that gold corrected after hitting $5,600 earlier this year following hawkish comments from Fed Chair Kevin Warsh and geopolitical tensions. Yet he believes the central bank cannot tame inflation because of fiscal dominance that requires keeping rates low. Crescat’s models, based on 7% annual M2 growth and equity comparisons, point to the $20,000 target within four years. Central banks have bought roughly 1,000 tonnes yearly, adding support. Smith stresses that mining equities, especially explorers, will deliver the greatest gains.