VIDEO - Byron King: I See Rising Debt, Dollar Trouble - and a Higher Gold Price

The Investing News Network last spoke with Byron King in January, and while global circumstances are certainly different, they haven’t changed for the better. 

“Nothing has gotten better since we spoke many months ago,” he said in a video interview. “It’s only gotten worse, and I’m just surprised that the gold price is a mere US$1,720 (per ounce).”

King, who writes the Whiskey & Gunpowder newsletter at Agora Financial, explained that already high levels of debt have only gotten higher in recent months due to COVID-19 responses, to the extent that “you truly have to be an an astronomer to understand (the numbers).”

“We’re in a real predicament right now, I don’t know how you ever pay the debt back,” he said.

According to King, one of the main things that’s holding the gold price back right now is that the US dollar is still a desirable currency. “If something happens to the usefulness of the dollar in global trade, in global commerce — forget it. You won’t even be thinking of the price of gold in dollars,” he said.

In his opinion, it’s only a matter of time before there’s a change.

“Looking forward, I see the dollar in trouble. I see debt overwhelming the governments, businesses, individuals. Gold is one measure of how to preserve your wealth through the times to come.”

And for those discouraged from buying gold due to higher prices and premiums, plus the supply crunch that’s hit the space, King suggested thinking long term.

“What’s the downside? Let’s think — you’re buying US$1,700 gold with a US$400 markup. Okay, at least you got the gold. Is the US$1,700 gold going to be US$1,000 gold any time soon? I really think that the odds of that happening are on the low side,” he commented.

“Is the US$1,700 gold going to be US$3,000 gold inside of your lifetime? And I don’t just mean 60 years from now, I mean within a reasonable period of time. Yeah. It sure is.”

Watch the video above for more from King on the gold price. And stay tuned for part two of the interview, which covers gold stocks, and part three, which looks at rare earths and copper.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.