---
title: "Gold’s Reset Isn’t Over Yet"
url: "https://www.readplaza.com/articles/golds-reset-isnt-over-yet"
type: "article"
publisher: "Commodity Culture"
category: "Market Commentary"
published: "2026-07-07T09:39:00+00:00"
updated: "2026-07-25T21:13:23.075231+00:00"
reading_time_minutes: 3
tags: ["Gold"]
---

# Gold’s Reset Isn’t Over Yet
Gold’s Reset Isn’t Over YetGold has pulled back from its January peak, but James Rickards says the larger move is still in front of us. He sees $10,000 gold as still possible by late this year or early next year, and he says the current selloff looks like a normal commodity correction rather than the end of the bull market.

Rickards also argued that the next financial crisis could be bigger than 2008, and that gold is still the best hedge against what he thinks is coming.

Why Gold FellRickards said the selloff was driven less by a change in the long-term story and more by a temporary dollar shortage tied to the Iran conflict and higher oil prices. In that kind of squeeze, countries need dollars fast, and one way to get them is to sell gold. Once the move starts, stop-loss orders and momentum traders push it further.

He said the broader fundamentals never changed. Central banks are still buying, China is still accumulating, mine output is flat, and inflation is still a problem. Gold is still trading above $4,000 an ounce in recent market data, which keeps it near historic highs even after the pullback.

Why Central Banks Keep BuyingRickards said the gold move is also about counterparty risk. After Russia’s reserves were frozen, central banks around the world saw that paper assets can be restricted when politics changes. Physical gold stored in your own vault does not carry that same risk.

The latest World Gold Council survey shows that central banks remain committed to gold, with 89% of respondents expecting global reserves to rise over the next 12 months. The same survey notes that official-sector gold buying has stayed strong for years, reinforcing Rickards’ view that this is not a short-term trade.

Why He Sees Bigger Trouble AheadRickards spent much of the interview warning that the next financial crisis could be bigger than 2008. He pointed to a global dollar shortage, private credit stress, war risk, and an AI bubble as separate pressure points that could all break at once. In his view, the system has already become dependent on repeated bailouts, which makes the next rescue harder to pull off.

He used Silicon Valley Bank as an example of how quickly officials can step in when they need to, but he said that does not solve the underlying leverage problem. It only delays the reckoning.

How He Would Position NowRickards said he would keep about 10% in gold and around 30% in cash. He likes cash because it gives you optionality when prices fall. He also favors Treasury notes if yields come down, especially 2-, 5-, and 10-year maturities.

On stocks, he would cut back on AI, hyperscalers, and software, and lean more toward defense, healthcare, energy, natural resources, mining, minerals, and agriculture. Those are the areas he thinks are backed by real demand rather than bubble behavior.

What It MeansThe bigger message is simple: Rickards sees gold as insurance, not just a trade. He thinks the pullback has not changed the long-term setup, and he still expects the metal to move much higher if the system keeps under strain.

For investors, the question is not whether there will be volatility. It is whether they want exposure to the assets Rickards thinks are most vulnerable, or the ones he thinks can survive the next shock.