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James Turk and John Rubino are well known figures in the gold industry and they’ve just published a new book, ‘The Money Bubble’ in which they argue that the price of gold is about to soar to $10-12,000 an ounce. Here’s why.
The above introductory comments are edited excerpts from 2 articles* on gold and silver by Peter Cooper (arabianmoney.net) entitled Why James Turk and John Rubino say the price of gold is set to soar to $10-12,000 an ounce and $500 an ounce silver when gold makes its epic run predicts new book, respectively.
The following article is presented by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) and the FREE Market Intelligence Report newsletter (register here; sample here) and has been edited, abridged and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.
Cooper goes on to say in further edited excerpts: In a nutshell the authors contend that the major paper currencies of the world actually now have less gold backing them than previously thought. An analysis by the Gold Anti-Trust Action Committee concluded that nearly half the world’s gold reserves of 29,000 tonnes have been dumped on the open market through central bank leasing or lending as they term it.  $10-12,000 an ounce You can calculate what the price of gold needs to be to restore gold backing to paper currencies to solve a crisis of confidence in several different ways. This is where the future price of $10,000 to $12,000 per ounce is derived. The formulas given in the book are a bit complex but the price implications are easy enough to follow. The authors blame the ‘gold price smackdown’ of last April on:
Messrs. Turk and Rubino describe how:
Short squeeze coming ‘…a short squeeze (a counterparty default that sends the price dramatically higher) has not become just possible, but probable, in the next few years’ because:
…[Once the above happens] all it takes is for the pension funds of the world to discover gold and the price is off to the levels James Turk and John Rubino expect ($10,000-12,000/ozt.)…. Silver The real issue for silver is the ratio of available silver to gold of 3:1 when the price ratio is currently 65:1. If there is ever a rush to buy silver there is just not going to be enough in stock and that will send the price higher and bring its price ratio to gold tumbling back towards its much lower historic levels. Silver will return to ’something close to its historical ratio to gold’ and pass $500 an ounce when gold…[reaches] $10,000-plus.
Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.
*http://www.arabianmoney.net/gold-silver/2014/06/09/why-james-turk-and-john-rubino-say-the-price-of-gold-is-set-to-soar-to-10-12000-an-ounce/ and http://www.arabianmoney.net/gold-silver/2014/06/06/500-an-ounce-silver-when-gold-makes-its-epic-run-predicts-new-book/ (Copyright Peter Cooper 2014) Sign up for our free newsletter. Related Articles: 1. Gold Prices Will Go Much Higher Into Next Presidential Election – Here’s Why Gold peaked in 2011, bottomed in June and December of 2013, and should rally for several, and probably many, years into the future. Here’s why. Read More » 2. Could a World of $7,000 Gold, $100 Silver & $400 Oil Be Coming? Jim Rickards explains in his new book “The Death of Money – The Coming Collapse of the International Monetary System” why a US dollar collapse could be coming and why gold would probably emerge at the heart of a new global monetary system as the only money that you can really trust. Read More » 3. James Rickards on $7000 – $8000 Gold You are going to see the price of gold go up… a lot and it may go up a lot in a very short period of time. It’s not going to go up 10% per year for seven years and the price doubles. It’s going to chug along sideways, maybe in an upward trend, with a lot of volatility. It will have a kind of a slow grind upward… and then a spike… and then another spike… and then a super-spike. The whole thing could happen in a matter of 90 days — six months at the most. Read More » 4. Rickards: Gold Going to $7-9,000/ozt. in 3 to 5 Years! Here’s Why Gold is technically set up for a massive rally to $7,000 to $9,000 per ounce in three to five years based on a collapse of confidence in the dollar and other forms of paper money. Read More » 5. Bock and Rickards Agree: Governments Want Gold to Go Higher! James G. Rickards, author of the current best seller Currency Wars, is so informed and articulate that he is almost scary in his clarity. He is the only person who essentially says what I have been saying about the “hidden” intent of the US Treasury and Central Bank – to deliberately weaken the US dollar and to cause price inflation, all in the interests of improving US competitiveness and to pay debt through financial repression. Ergo…they indirectly want and will cause the price of precious metals to escalate. Words: 398 Read More » 6. Governments Will Want – Will NEED – Much Higher Gold Prices! Here’s Why That governments will want – and will NEED – much, much higher gold and silver prices in the future is counter intuitive, given that they have done everything within their power to throttle back and to keep a lid on bullion prices. Let me explain why. Words: 1300 7. 3 Models for the Future Price of Gold: $2,900 (2017); $3,500 – $4,000 (2017); $9,000 What will the future top prices for physical gold and silver be? Naturally, no one knows for sure but many analysts have developed interesting models and scenarios as to what the future holds and this article reviews 3 such analyses for your consideration. Read More » 8. Jim Willie: Gold Will Rise to $5,000/ozt. and Beyond & Silver Will Rise Multiples HigherIn the last several months, the world economic crisis has entered a new elevated level of perma-crisis and constant tension, widely recognized as something more serious, more dangerous, and more risk-filled. This new normal is neither without resolution nor the attempt to resolve anything and, as such, is why the price of gold will rise to $5,000 per troy ounce, then higher, and at the same time, the silver price will rise multiples higher. Let me explain. Read More » 9. Gold Projected to Reach $4,000/ozt. Sometime Between Late 2015 & Mid 2017! Here’s My Rationale I am not predicting a future price of gold or the date that gold will trade at $4,000, but I am making a projection based on rational analysis that indicates a likely time period for gold to trade at $4,000 per troy ounce. Yes, $4,000 gold is completely plausible if you assume the following: 10. New Analysis Suggests a Parabolic Rise in Price of Gold to $4,380/ozt. According to my 2000 calculations, if interest rates and inflation stay constant over the next 2 years, we could expect to see (with 95.2% certainty) a parabolic peak price for gold of $4,380 per troy ounce by then! Let me explain what assumptions I made and the methods I undertook to arrive at that number and you can decide just how realistic it is. Words: 740 11. Coming Move In Gold Will See It Reach $3,200 by Late 2014 or Early 2015 The breakdown after the QE4 announcement, and now the extreme move into a yearly cycle low has, I daresay, convinced everyone that the gold bull is over. I would argue that it is impossible for the gold bull to be over as long as central banks around the world continue to debase their currencies [and that] gold is just creating the conditions – a T-1 pattern – necessary for its next leg up to what I expect to be…around $3200 sometime in late 2014 or early 2015. [Let me explain.] Words: 560; Charts: 3
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The government is not going to let us keep PM once the prices take off.
As every fewer Countries use the US$ to conduct global trade, its value will begin to decrease and when that happens we will see a major shift in the value of PM’s, especially against the US$.