I closely examined the analysis that Wells Fargo just released on gold, and honestly, it's interesting. Yes, we see gold's decline today and over the past few months, but the bank's strategists believe we might be at a major tipping point.

So here’s the thing: after roughly an 11% correction in March (the worst since 2013), the price is trading around $4,800 per ounce. But Ohsung Kwon, the chief strategist at Wells Fargo Securities, just explained something that changes the perspective. He believes we are currently in the fourth wave of a currency depreciation cycle that began in 2022.

The concept is simple but powerful: global central banks are starting to sell off fiat currencies massively and are turning to safer, more neutral assets. This pattern has repeated during the Great Depression, the Nixon shock, the stagflation of the 1970s, the war on terror, and the subprime crisis. Each time, gold surged.

And now, Kwon presents his figures: according to his model, four out of five economic scenarios indicate an acceleration of this depreciation. Specifically, this would mean gold could reach $8,000 per ounce by 2027. From the current level, that’s over 66% potential upside. Not bad, right?

What makes this credible is his analysis of the M2/gold ratio. Kwon uses this indicator to track cycles, and it shows that the current cycle is only at 3.5 years out of an average duration of 8.5 years. So we are barely halfway through. Kwon’s bearish scenario predicts a drop to $4,000 by the end of 2027, but four out of five times, the upward trend dominates.

So yes, gold’s decline today hurts in the short term, but within the context of this currency depreciation cycle, it looks more like a buying correction rather than a sign of reversal. Something to watch closely.