munKNEE.com Your Key to Making Money
What does [this surge in the price of gold] mean?…Is it just a proverbial
“dead cat bounce” or is it that the death of the Euro is beginning to be priced into the markets….Will it continue? While no one can answer these questions with certainty my thoughts (guesses) are discussed below….Words: 380
So says ”Monty Pelerin” (a pseudonym derived from The Monty Pelerin Society) in edited excerpts from his original article* as posted at www.economicnoise.com.
Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity – see Editor’s Note at the bottom of the page. This paragraph must be included in any article re-posting to avoid copyright infringement.
Pelerin goes on to say, in part:
What may be beginning is that gold is becoming the flight to safety. While the dollar may be strong against the Euro, both are deteriorating in purchasing power. At the moment, the dollar is depreciating slower than the Euro and hence appears “strong” relative to the Euro. All currencies are being destroyed or, as Voltaire observed, going to their intrinsic value — zero.
If (when?) markets finally recognize the inevitability of what massive money printing does to fiat currency, gold should soar. Whether we are at that point is unknown….[but] a significant [ongoing] divergence between the Dow and gold as seen yesterday will be [seen]as an early sign.
Automatic Delivery Available! If you enjoy this site and would like every article sent automatically to you then go HERE and sign up to receive Your Daily Intelligence Report. We provide an easy “unsubscribe” feature should you decide to opt out at any time.
Spread the word. munKNEE should be in everybody’s inbox and MONEY in everybody’s wallet!
When money leaves the banking system, stuffing it in a mattress is not a solution to protect against loss of purchasing power, especially in times when the currency itself is in question. Taking it out of the bank and putting it into hard assets should protect one against devaluations in currency.
As someone (name unknown) once said, people don’t invest in gold to make money, they invest in gold because they have money and are trying to protect what they have. They are trying to protect the purchasing power that they have achieved.
*http://www.economicnoise.com/2012/05/17/gold-and-the-dow-went-separate-ways-today/ (To access the above article please copy the URL and paste it into your browser.)
Editor’s Note: The above article may have been edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.
Related Articles:
1. New Analysis Suggests Gold Going to $3,495 in 2013, $6,233 in 2014 and Peaking at $31,672 in 2015!
Nick Laird has put together an Elliott Wave theory prediction using ‘The Golden Mean’ & ‘Fibonacci Sequences’ to arrive at future prices for gold…which he is hopeful will serve as ‘a roadmap which gold may take as it climbs to new highs’. See the chart below. Words: 625
2. Alf Field: Correction in Gold is OVER and on Way to $4,500+!
There is a strong probability that the correction in the price of gold [down to $1,523] has been completed. The up move just starting should be…the longest and strongest portion of the bull market…at least a 200% gain… [to] a price over $4,500. The largest corrections on the way to this target, of which there should be two, should be in the 12% to 14% range. [Let me explain how I came to the above conclusions.] Words: 760
3. Gold: $3,000? $5,000? $10,000? These 151 Analysts Think So!
151 analysts maintain that gold will eventually reach a parabolic peak price of at least $3,000/ozt. before the bubble bursts of which 101 see gold reaching at least $5,000/ozt., 17 predict a parabolic peak price of as much as $10,000 per troy ounce and a further 13 are on record as saying gold could go even higher than that. Take a look here at who is projecting what, by when and why. Words: 844
4. Will Gold Peak at $2,500, $8,890 or $15,000?
When considering that the conditions which propelled gold and silver to their 1980 highs are much worse today, I predict both metals will easily eclipse those previous highs. That means $2,500 gold and $150 silver at the very minimum, but more likely a parabolic ascent to $8,890 gold and $517 silver before all is said and done. Words: 1063
5. 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
6. Deja Vu? Is Gold Just in a Correcting Phase on Its Way to Parabolic Peak of $4,294?
The current volatility in the precious metals market doesn’t necessarily indicate a change in secular direction. [In fact,] if today’s gold price was to rise by the same degree over the next 14 months [as it did from the beginning of 1979 into 1980, it would hit $4294/ozt. by Jan 2013! Let me explain.] Words: 420
7. Contracting Fibonacci Spiral Puts Gold Near $4,000 by 2013 and $7-10,000 by 2020
Gold is operating on a smaller Contracting Fibonacci Spiral Cycle that is in synch with the larger Contracting Fibonacci Spiral the markets are in. Adding together the sum of parts… the price of gold will move up in price in 2013, 2016, 2018, 2019 and 2020, with each subsequent leg moving less in percentage terms than the prior move. Gold advanced 4 foldish from 1999 until 2008 ($252/ounce to $1046/ounce) suggesting that gold should top out below $4000/troy ounce by the end of January, 2013…[on its way] to $7,000 and $10,000 per troy ounce by 2020. [Let me explain.] Words: 834
8. Nick Barisheff: $10,000 Gold is Coming! Here’s Why
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
From questions whether gold is in a bubble to predictions that soaring prices are just around the corner, one thing is clear: a new phase of awareness for gold is upon us. How far might it move before these troubling times are over? [Let’s take a close look at a variety of factors and scenarios before coming to a conclusion.] Words: 5717
10. Gold Will Reach $3,000/$4,000/$5,000 Before This Bull Market Is Over! Here are 12 Factors Why
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
11. Larry Edelson: “I’m Deeply Worried About the U.S. Dollar” – Here’s Why
The disaster in Europe should be pushing the U.S. dollar up more than it is but it’s not, and that has me deeply worried. [I’m] worried that the next leg of the dollar’s decline may be right around the corner; worried that the loss of the dollar’s reserve-currency status could occur more quickly than even I had expected and worried that the “X&@!” may soon hit the fan, across the entire globe. [Let me explain.] Words: 600