A rapidly increasing price level for gold may not be beneficial to investors, said best-selling author, Jim Rickards.
$10,000 an ounce is "approximately the implied non-deflationary price of gold in a gold-backed monetary system," Rickards told Kitco News on the sidelines of the Vancouver Resource Investment Conference.
Rickards noted, however, that gold at $10,000 levels may imply an increase of prices of other goods and commodities, thus eroding purchasing power.
"All gold does is it preserves your purchasing power. But, if gold is $5,000, then oil is probably $400, and everything is double or triple, you're not really ahead of the game," Rickards said.
The best-selling author added that 2018 may be a breakout year soon, and that a pending economic downturn is imminent and would be triggered by a liquidity crisis worse than the Great Financial Crisis in 2008.
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