Is gold headed to $5,000 within five years? One hedge fund manager thinks so

How high will gold go? $2,000? $2,500? How about $5,000?

Diego Parrilla, the head of the $450 million Quadriga Igneo fund, says the yellow metal could top $3,000 as central banks will fail to contain inflation over the next decade.

Speaking in an interview with Bloomberg, Parrilla avers that unprecedented stimulus from the Federal Reserve and its counterparts could help gold spike to around $3,000 to $5,000 per ounce within the next five years.

“What you’re going to see in the next decade is this desperate effort, which is already very obvious, where banks and government just print money and borrow, and bail everyone out, whatever it takes, just to prevent the entire system from collapsing.”

This makes sense when you consider the trillions of dollars that have been printed in the United States and the rest of the world. You are already beginning to see pricing pressures for goods and services people want.

He also warned about historically low interest rates.

“What we’ve seen over the last decade is the transformation from risk-free interest to interest-free risk, and what this has created is a global series of parallel synchronous bubbles,” he added.

Is it time to buy gold, despite the precious metal trading at a nine-year high of $1,800?