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Natural Variability

Could the Gold Price Soar To $65,000 An Ounce in 5 Years?

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Approximately 190,000 metric tonnes of gold have been mined throughout history. Nearly all of this gold can still be accounted for in one form or another and is known as 'above-ground gold'. About 90,000 tonnes of this gold is held in the form of jewellery, 33,000 tonnes of gold are (supposedly) held by central banks, 40,000 tonnes are attributed to private gold holders, with the remainder having been used in industrial and other fabrication uses.

While 190,000 tonnes may sound like a lot, at the current gold price of USD 1250 per ounce, all the gold ever mined in the world is valued at less than $8 trillion, and official central bank gold holdings (monetary gold) are valued at just $1.3 trillion. The US Treasury claims to hold 8133 tonnes (or 261.5 million troy ounces) in its official gold reserves (a figure which, by the way, could be far lower since it has never been independently audited). At the current gold price, these US Treasury gold reserves are worth just under $320 billion.

Compare these gold valuations to total outstanding money supply figures. The total broad US money supply is currently running in excess of $18 trillion (using a "continuation M3" measure).  For the US money supply of $18 trillion to be fully backed by the US Treasury’s gold, this would require a gold price of $68,840 per troy ounce.

Even at a 40% gold-backing, a backing which was historically in place for the US money supply in a recent period in US monetary history, this would imply a gold price of $27,500 per ounce.

http://www.zerohedge.com/news/2017-08-07/gold-price-usd-65000oz-5-years

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 apache54    4,127

The powers that rule the world will never allow that to happen and IF the world suffers a major event then money is worthless and it would almost impossible to say what value gold and silver actually have, but they will play a part in barter for things!!

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 Cryptic Mole    3,989

Could the Gold Price Soar To $65,000 An Ounce in 5 Years? Sure can, but don't you realize that when it does, a loaf of bread will also cost $50,000. Can you say hello to Hyperinflation? The big rise in both gold and silver prices will not make you a wealthy individual. All it will mean is your wealth will keep pace with inflation and it will have the same buying power (or there about's) that it had before everything became inflated.

I was at one time a big investor in both physical gold and silver. At one point I owned 250,000 ounces of real hand held physical silver. I used to also trade in the commodity and stock markets and property and real estate. I would say I'm qualified to share my perspective on such matters.

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 Cryptic Mole    3,989
1 hour ago, apache54 said:

The powers that rule the world will never allow that to happen

Of course, they will allow that to happen. That's how to destroy a currency and bring in the new system and never expect a reset. Resets are the thoughts of a fool. There will be no year of jubilee ever! You'll get 1 penny on every dollar lost and that's only until they run out of the FDIC and laughable insurance. lol. FDIC...

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 Cryptic Mole    3,989
25 minutes ago, Natural Variability said:

The history of paper money is a history of failure. Money not backed by gold or silver eventually becomes worthless. The US dollar has lost 92% of it's value since it's introduction by the Federal Reserve in 1913:

https://dailyreckoning.com/fiat-currency/

2018-2019

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 Cryptic Mole    3,989

Do some research and the one million dollars for one dozen eggs.

also:

During the 1930's depression, farmers paid their monthly mortgages to their bankers with one dozen eggs.

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The classic government response to an increase in the gold price or inflation is to raise interest rates to make fiat money more attractive. The Fed appears to be getting ahead of the game by raising interest rates before inflation hits their target of 2%. I believe the reason the Fed is ahead of the game is the collapse of the petrodollar at a time when the US has a $20 Trillion national debt. There is no way the national debt can be reduced now that the US is losing reserve currency status incrementally.  I believe it is not a matter of if, but WHEN the SHTF and the dollar along with all other fiat currencies collapse.

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Governments of the world can slow the takedown of fiat money by making gold and silver trading illegal. FDR did this in 1933 after US banks ran low of gold demanded by Europe in exchange for paper money. Will it work? Likely not in the long run, but the governments of today have extraordinary power of police and intelligence so it might work. They don't call it FIAT money for nothing!

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 Cryptic Mole    3,989

How about this: In 2008 the monthly inflation rate hit 3.5 million percent with an egg costing 50 billion Zimbabwean dollars. A loaf of bread then cost as much as 12 new cars could have cost 10 years before. Prices doubled every 25 hours, which gave Zimbabwe the second-worst hyperinflation in history, behind post-war Hungary. The same year, Zimbabwe printed its highest denomination banknote, at 100 trillion dollars it was only enough to buy a weekly bus ticket.

Heres the link to the full story: https://www.rt.com/business/267244-zimbabwe-currency-compensation-hyperinflation/

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 Cryptic Mole    3,989
6 minutes ago, Natural Variability said:

The classic government response to an increase in the gold price or inflation is to raise interest rates to make fiat money more attractive. The Fed appears to be getting ahead of the game by raising interest rates before inflation hits their target of 2%. I believe the reason the Fed is ahead of the game is the collapse of the petrodollar at a time when the US has a $20 Trillion national debt. There is no way the national debt can be reduced now that the US is losing reserve currency status incrementally.  I believe it is not a matter of if, but WHEN the SHTF and the dollar along with all other fiat currencies collapse.

Somewhere between 2018 and 2019, your US dollar will be no more!

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 apache54    4,127
17 minutes ago, Cryptic Mole said:

Of course, they will allow that to happen. That's how to destroy a currency and bring in the new system and never expect a reset. Resets are the thoughts of a fool. There will be no year of jubilee ever! You'll get 1 penny on every dollar lost and that's only until they run out of the FDIC and laughable insurance. lol. FDIC...

I can only agree to a little of what your saying, what I am saying is a MAJOR event that has NOTHING to do with NWO, a event caused by mother earth or father space!! and so lots of variables as to the extent of damage etc. etc. that is what i am calling a reset! and I can assure you i am NOT  A  FOOL!! LOL

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