Wednesday , 21 February 2024

Authors Of “The Money Bubble” Foresee $10-12,000 Gold & $500 Silver – Here’s Why (+4K Views)

James Turk and John Rubino are well known figures in the gold industry and they’ve just published a new book, ‘Thegold2 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 ( 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 (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:

  1. a desperate action to ‘avoid a default in which a counterparty failed to deliver physical metal when obliged to do so’,
  2. a ‘pre-emptive strike’ by the bullion banks and central banks which have colluded for years to suppress the gold price to mislead markets on the true rate of inflation and
  3. the Indian central bank ‘which decided, supposedly to reduce the country’s trade deficit, to impose strict limits on gold imports’

Messrs. Turk and Rubino describe how:

  • bullion banks, led by Goldman Sachs, recommended shorting gold in early April,
  • then a handful of major banks sold enough futures contracts to take down the price below key support levels and
  • then selling compounded (driving the price down 9% in one trading session).
[Needless to say,]…the manipulators won and the gold price fell 28% – its worst year for 13 years – but this game is about to end in the opinion of this new book’s authors.

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:

  1. gold is migrating from West to East as China and Russia voraciously convert their dollar reserves into gold and vaults are being emptied,
  2. gold ‘backwardisation’ (when the current price is higher than the future price) has twice previously ( in 1999 and 2008) indicated a price hike to come and, as demonstrated above,
  3. price manipulation is about to breakdown.

…[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.)….


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.

* and (Copyright Peter Cooper 2014) Sign up for our free newsletter.

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  1. The government is not going to let us keep PM once the prices take off.

  2. 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$.