In 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 ounce, then higher, and at the same time, the silver price will rise multiples higher. [Let me explain.]
So says Jim Willie (goldenjackass.com) in edited excerpts from his original article* as posted on 24hgold.com entitled 13 Reasons Why Gold Will Hit $5000/oz.
[The following article is presented by Lorimer Wilson, editor ofwww.munKNEE.com and the FREEMarket Intelligence Report newsletter (sample here) and may have 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.]
Willie goes on to say in further edited excerpts:
The shortage for Silver is astounding and obvious to analysts and experts, except those who work for banks. The shortage for Gold is more subtle, as thousands of tons have been leased illicitly and, therefore, the accounting is replete with double counting and outright missing accounts in false reporting. The most egregious ledger item is the USGovt gold reserves, listed as deep storage gold, translated to mean some scattered Barrick Gold ore bodies buried in mountain ranges.
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[Each of the factors below are expanded upon in the original article* and you are encouraged to go to the link below for greater detail as to the reasoning behind each,]
Interest rate derivative meltdown and damaging effects from rising 10-year Treasury Note…
Reversal of US Treasury bond carry tradeand convexity effect on 10-year Treasury Note…
Indirect exchange: US Treasury bond returned to sender and Eastern infrastructure build out, the inflation finally imported after 30 years of its export…
Bank bail-in executionsand private account confiscation…
Fall of House of Saud and demise of petro-dollar and rise of NatGas Co-op…
BRICS bank as gold trade central bank and US Treasury bond conversion to gold…
US dollar devaluation and global split by defiant foreigners…
Banking system meltdown and default of sovereign bonds…
Discovery of allocated gold account thefts and 40,000 mission gold tons…
Discovery of Western central bank fractional gold management, contrasted with gigantic Eastern central bank gold reserves…
Movement away from the traditional US dollar trade settlementand widespread adoption of yuan swap facilities in bilateral trade and climax in gold trade settlement with the new gold standard adoption…
Rise of Eurasian trade zone and expansive energy pipelines…
Explosive growth in demand for coins, bars, jewelry across the entire world…
[Given the above] the people will pay whatever price eventually, and certainly premiums, until Gold is properly priced an order of magnitude higher. The equilibrium in the gold market will come when Gold is above $5000 per ounce.
[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.24hgold.com/english/news-gold-silver-13-reasons-why-gold-will-hit-5000-oz.aspx (Go toHat Trick Letterto subscribe to the paid research reports, which include coverage of critically important factors at work during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces.)
The majority of analysts maintain that gold will reach a parabolic peak price somewhere in excess of $5,000 per troy ounce in the next few years. Given the fact that the historical movement of silver is 90 – 95% correlated with that of gold suggests that a much higher price for silver can also be anticipated. Couple that with the fact that silver is currently greatly undervalued relative to its average long-term historical relationship with gold and it is realistic to expect that silver will eventually escalate dramatically in price. How much? This article applies the historical gold:silver ratios to come up with a range of prices based on specific price levels for gold being reached. Words: 691 Read More »
Our review of the best places to buy gold online…[are] dependent on what your goal with the gold is — amassing physical bullion for financial security or to speculate on gold prices. Below are strategies and recommended dealers for each approach: Words: 532 Read More »
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:
Since the Financial Crisis erupted in 2007, the US Federal Reserve has engaged in dozens of interventions/ bailouts to try and prop up the financial system…and the amount of money printed is absolutely staggering. As a result of this, inflation hedges, particularly Gold, have been soaring…[but] for gold, for example, to hit a new all time high adjusted for inflation, it would have to clear at least $2,193 per ounce. If you go by 1970 dollars (when gold started its last bull market) it would have to hit $4,666 per ounce. Words: 581
We now have a really strong probability that the correction which started at $1913 on 23 August 2011 has been completed both in terms of Elliott waves and also in terms of time elapsed. If this is correct, the gold price should soon be expressing itself in violent upside action as it moves into the third of third wave which is still targeted to reach $4,500. [Let me explain in detail (with charts) how and why my most recent analyses confirm my earlier target of $4,500.] Words: 1085
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 $4,380 per troy ounce by then! Let me explain what assumptions I made and the methods I undertook to arrive at that number and you can decide just how realistic it is. Words: 740
The closing of the gold window back in August 1971 has led governments worldwide to create endless amounts of worthless paper money and the resulting credit bubble has created a world debt exposure of over US$ 1 quadrillion (including derivatives). It has also created perceived wealth for big parts of the world’s population – a wealth which is only backed by promises to pay and by grossly inflated assets. Few people realise that this wealth is totally illusory and will implode considerably faster than the time it took to create it. [Let me explain.] Words: 890
My Fractal Gold chart work is a direct comparison of Gold, today, to the late 70’s Gold Parabola. Thus, “timing” is taken directly from the late 70’s cycle, with price targets created from a combination of the late 70’s Gold price and different technical analysis techniques. We developed a price target back in 2006/ 2007 for Gold to reach the $10,000 to $12,000 range during this Gold Bull and we still stand by that forecast. Let me explain where we are at this point in time.
This is not a typical bull market. Gold is not rising in value, but instead, currencies are losing purchasing power against gold and, therefore, gold can rise as high as currencies can fall. Since currencies are falling because of increasing debt, gold can rise as high as government debt can grow. Based on official estimates, America’s debt is projected to reach $23 trillion in 2015 and, if its correlation with the price of gold remains the same, the indicated gold price would be $2,600 per ounce. However, if history is any example, it’s a safe bet that government expenditure estimates will be greatly exceeded, and [this] rising debt will cause the price of gold to rise to $10,000…over the next five years. (Let me explain further.] Words: 1767
The correlation between the gold price from 1968 until 1979 and from early 2000 until today is an amazing 89.65%! More specifically, the correlation from 1975 until April 1979 and from January 2008 until today is an astonishing 97.83% suggesting that gold will reach an ultimate top of $5,000 per troy ounce before the bubble bursts. Words: 330
It is my contention that the price of gold rallies whenever the U.S. dollar’s real short-term interest rate is below 2%, falls whenever the real short rate is above 2%, and holds steady at the equilibrium rate of 2%. Furthermore, for every one percentage point real rates differ from 2%, gold moves by eight times that amount per year. So if the real rates are at 1%, gold will move up at an 8% annualized rate. If real rates are at 0%, then gold will move up at a 16% rate (that’s been about the story for the past decade). Conversely, if the real rate jumps to 3%, then gold will drop at an 8% rate. [Let me explain.] Words: 982
I believe that the price of gold will… reach… $3,000, $4,000, and even $5,000 [per troy] ounce…during the course of this long-lasting bull market, a bull market that still has years of life left to it…[although] prices will remain extremely volatile – with big swings both up and down along a rising trend…The future price of gold is a function of past and prospective world economic, demographic, and political developments [and in this article] I review some of these developments and trends – so that you can come to your own “golden” conclusions. Words: 3800
I’m thinking Silver will be over $100 US$ before Gold goes over $4,000 US$, with both zooming upward as the US$ slips and the US considers yet another War to maintain the US$.
Silver is poised to become very popular with a new very large group of investors that for whatever reason are not interested in owning Gold!
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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 ounce, then higher, and at the same time, the silver price will rise multiples higher. [Let me explain.]
My2Cents From my 08-24-13 post:
I’m thinking Silver will be over $100 US$ before Gold goes over $4,000 US$, with both zooming upward as the US$ slips and the US considers yet another War to maintain the US$.
Silver is poised to become very popular with a new very large group of investors that for whatever reason are not interested in owning Gold!