Gold’s soaring price predicted to reach $10,902: A market veteran’s bold forecast

By willowt // 2025-02-10

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James Turk, a 53-year market veteran, predicts gold prices to soar to $10,902, driven by unprecedented market conditions and a severe shortage of physical gold.
The gold market is experiencing a historic short squeeze, characterized by delays in physical metal delivery and a shortage of available gold to meet delivery promises.
The current situation mirrors the 1930s trend of individuals and institutions moving their purchasing power from banks to physical gold due to declining trust in financial institutions.
Turk anticipates a significant price surge in silver, potentially more dramatic than gold, due to tighter physical silver availability and smaller market size.
Turk advises investors to continue accumulating physical precious metals through dollar-cost averaging, emphasizing the undervaluation of both gold and silver in the current market.

In a stunning prediction that has sent ripples through the financial world, James Turk, a 53-year market veteran, has declared that the price of gold is poised to skyrocket to a jaw-dropping $10,902. This forecast, shared with King World News, is rooted in the unprecedented and historic conditions currently unfolding in the gold market, particularly the ongoing short squeeze and the scarcity of physical metal.

The unprecedented short squeeze

The new year has brought a bang for gold and silver bulls, with the market showing no signs of slowing down. Turk emphasized the significance of the ongoing short squeeze, a phenomenon that is receiving considerable media attention. "The new year has opened with a bang, and I expect the good news for gold and silver bulls to continue—provided you own physical metal," Turk stated. Traditionally, short positions in gold and silver are delivered on or near First Notice Day (FND), a date announced by Comex years in advance. It is generally advantageous for shorts to deliver as soon as possible to free up funds and reduce storage costs. However, recent delays in physical metal delivery are raising eyebrows. "The delays to deliver physical metal—several weeks, according to news reports—are not normal. But it is not tariffs that are causing these distortions in my view," Turk explained. The core issue, according to Turk, is the vast number of promises to deliver gold that far exceed the available physical metal. This imbalance is causing significant disruptions. "Consider this comment in London’s Financial Times: 'The flow of physical metal out of London to New York is causing disruption to the gold market, and has increased the cost of borrowing gold.' This sentence highlights the severity of the situation," he added.

Historical context and market dynamics

To understand the gravity of this situation, one must look back to the 1930s when people moved their purchasing power from banks to physical gold as trust in financial institutions waned. The current market dynamics echo this historical trend. "The fractional reserve system of more gold promises than existent physical metal is contracting," Turk observed. The situation is exacerbated by the fact that physical metal is being held by strong hands—individuals and institutions unwilling to lend their gold even at high interest rates. "Banks can create dollars when they make a loan, but they cannot conjure up physical gold and silver. So metals have to be borrowed from existent stock, and the shorts are discovering that physical metal is being held by strong hands unwilling to take the risk of dealer defaults," Turk explained. This scenario is not without precedent. In 1985, Volume Investors failed to deliver cash on a margin call, leading to its collapse. However, the current situation is far more widespread and could have broader implications. "The shorts have a serious problem that is apparent in this gold chart," Turk noted, referring to the sharp rise in gold prices from 1,800 to 2,900.

The silver market: A rocket ready to launch

While gold is making headlines, silver is also on the cusp of a significant price surge. "I expect a similar rocket in silver, and probably a steeper ascent because its market is smaller and the availability of physical silver is even tighter than gold," Turk predicted. He anticipates that silver will reach a weekly spot price close above $32, a level that is tantalizingly close and could be achieved soon.

Strategic advice for investors

For those who have been following Turk's advice to accumulate physical metal through dollar-cost averaging, the strategy remains unchanged. "Both precious metals are undervalued in my view, as we can see in this gold chart," he said, referring to a chart that compares the monthly gold price to historical levels. The chart indicates that gold remains undervalued, particularly if central banks have less gold in their vaults than they report. Turk's forecast of $10,902 for gold is based on several factors, including the scarcity of physical metal, the increasing geopolitical unrest and the lack of new large gold deposits. "Gold at its previous high of $850, adjusted for inflation, puts the gold price at $2,000 plus. Geopolitical uncertainty, such as a nuclear Iran, and the growing demand from countries like India and China will drive gold prices higher," he explained. In conclusion, the gold market is on the brink of a historic shift, driven by a combination of supply constraints, strong demand and geopolitical tensions. Turk's bold prediction of $10,902 per ounce may seem audacious, but the current market conditions suggest that it is not out of the realm of possibility. For investors, the key is to remain informed and prepared for the potential volatility that lies ahead. This news article not only highlights the current market dynamics but also provides historical context to underscore the significance of the ongoing changes in the gold and silver markets. The insights from a seasoned market veteran like Turk offer a compelling perspective on the future of precious metals and the broader economic landscape. Sources include: KingWorldNews.com SeekingAlpha.com