Gold price at $10k, silver at $500 due to 'a decade of shortage

Gold last traded at $1,784 an ounce. Silver at $22.53 an ounce.

NEWS SUMMARY: Precious metal prices rose Friday on mixed data and a firmer dollar. U.S. stocks fell, after a disappointing November jobs report, ending a roller-coaster week driven by Covid omicron variant fears.

KITCO--"This will be a 'decade of shortage' defined by high inflation and a failed attempt to raise rates is the perfect combo to trigger a massive rally in gold, said Goehring & Rozencwajg Associates managing partner Leigh Goehring.

Next year, inflation could already be pushing 9%, and it could get a lot worse, Goehring told Kitco News in an interview.

'We're getting closer to the explosion of gold prices to the upside. I'm a big believer that inflation is not going away. It's going to continue to be a problem. We could be looking at a black swan event in inflation. It could be an oil shock, natural gas shock or agricultural shock,' Goehring said.

Federal Reserve Chair Jerome Powell already shocked the markets this week by dropping the phrase that 'inflation is transitory' and stating that the U.S. central bank will be discussing accelerating the pace of tapering at the upcoming December meeting.

An inflationary black swan event could kick-start that inflationary psychology, which has been missing despite annual U.S. inflation running hot at 6.2%....

How big of a bull market will it be? Goehring is expecting gold to reach $10,000 an ounce by the end of the decade. And for silver to eventually catch up and trade around $500 an ounce.

'By 2028, gold could be over $10,000. If gold is over $10,000 and we go back to the 20:1 gold-silver ratio. That's $500 silver,' he said. 'It will be the decade of shortages, and everyone's going to get poorer except for the people that own physical gold and silver.'"