• Thomas Kaplan, chairman of NovaGold Resources (NG), expects gold to exceed its recent $5,600 record, dismissing a recent 10% dip as temporary volatility.
  • He cites currency debasement, high global debt, and doubts about fiat currencies, including the dollar, as key drivers for a long-term bull run.
  • Kaplan views gold as a secure, non-liability asset that retains value during economic stress, predicting central banks and nations may increasingly nationalize gold.

Gold prices have been on a rollercoaster ride, but billionaire investor Thomas Kaplan remains steadfast in his bullish outlook. Speaking from his position as chairman of NovaGold Resources, Kaplan told sources close to the matter that the recent sell-off—which saw gold fall to around $5,083 after hitting a $5,600 record—is merely a blip triggered by profit-taking and a stronger dollar following President Trump's nomination of Kevin Warsh as Fed chair. "This is temporary volatility," he was paraphrased as saying, emphasizing that the underlying drivers remain intact.

Kaplan's confidence stems from a deep-seated belief in gold's role as a hedge against financial instability. He points to global debt, inflation fears, and central bank buying as factors fueling the rally, which has seen gold surge over 60% year-to-date. Efforts to reach NovaGold for additional comment were unsuccessful, but people familiar with Kaplan's thinking say he views gold as a "non-debasable currency" that could see prices reach $3,000–$5,000 initially and potentially tens of thousands long-term. This echoes his 2007 call for $3,000–$5,000 gold, which was realized after the financial crisis.

Without a sustained rebound, some analysts worry the dip could signal broader market jitters, but Kaplan dismisses such concerns. He notes that gold's trajectory mirrors past market recoveries, with the current phase being just the "foothills" of a multi-decade bull run. Industry-specific elements come into play here: Kaplan favors secure U.S. jurisdictions like Alaska, where NovaGold holds a 50% stake in the Donlin Gold project—one of the world's largest undeveloped gold deposits with 39 million ounces in proven reserves. Recent developments, such as Paulson Advisors acquiring Barrick Gold (GOLD)'s 50% stake in Donlin for ~$800 million–$1 billion last summer, bolster this position.

Looking ahead, Kaplan warns of nationalization risks for gold mines amid rising strategic value, a shift that could make gold one of the few assets likely to hold value in a financial crisis. Analysts like Bank of America (BAC) forecast $5,000 by 2026, while Wells Fargo (WFC) sees $6,100–$6,300 by end-2026, aligning with Kaplan's near-term expectations. In a slightly more conversational tone, he credits crypto hype for reinforcing gold's appeal, suggesting that as doubts about fiat currencies grow, investors may increasingly turn to physical assets. For now, gold trades around $5,083, but with central banks' record buying signaling eroding trust in traditional currencies, Kaplan's prediction of a surge past records seems less like speculation and more like a calculated bet on an uncertain future.