Jim Rickards recently appeared on CBC News’ The Exchange and made the case for $10,000 gold.

He said the recent jump in the price of gold represent a world-wide vote of no-confidence in central bankers.

The increase in the dollar price of gold is just a reflection of the decline of the dollar. So, it’s sort of a vote of no-confidence in central bank policies. Investors are looking around saying. ‘We’re losing confidence in central bank money. We’d like another form of money, thank you very much.’ It’s called gold. So, that’s part of the reason gold is going up.”

Rickards went on to explain why he thinks gold will ultimately hit $10,000. He said it’s not a guess, and he doesn’t just throw that number out to get attention or to be provocative. He actually has mathematical calculations behind his assertion. Rickards explains his reasoning in this video.

Highlights from the video.

“The increase in the dollar price of gold is just a reflection of the decline of the dollar. So, it’s sort of a vote of no-confidence in central bank policies. Investors are looking around saying. ‘We’re losing confidence in central bank money. We’d like another form of money, thank you very much.’ It’s called gold. So, that’s part of the reason gold is going up.”

“When I say the dollar price of gold’s going up, I don’t think gold is going up.I think the dollar’s going down.”

“Just two weeks ago, Ken Rogoff, former chief economist of the IMF and a professor at Harvard said, ‘Emerging market economies should devote 10% of their reserves to gold.’ So imagine an IMF economist and a Harvard professor saying buy gold. He said, ‘Don’t worry if it’s in short supply, the price will go up.’”

“Governments actually want inflation. They tell you that. It’s part of their policy. But they’ve tried everything. QE1, QE2, QE3, helicopter money, currency wars, Operation Twist, forward guidance – they’ve tried everything and cannot get the inflation.”