Reuters TV have interviewed John Butler who says a return to the gold standard is “inevitable” possibly as soon as within the year and $10,000/oz gold is on the cards.

Jamie McGeever interviews Butler in the Goldsmith Hall in London about his opinions propounded in his new book, ‘The Golden Revolution : How to Prepare for the Coming Gold Standard.’

McGeever starts the interview by saying that far from gold being expensive at $2,000/oz, gold may be “the bargain of a life time” especially “if the world returns to some form of gold standard.” From Goldcore:

Gold’s London AM fix this morning was USD 1,648.25, EUR 1,246.22, and GBP 1,017.88 per ounce. Yesterday’s AM fix was USD 1,641.25, EUR 1,241.49 and GBP 1,019.54 per ounce.

Silver is trading at $30.85/oz, €23.45/oz and £19.14/oz. Platinum is trading at $1,563.00/oz, palladium at $658.75/oz and rhodium at $1,350/oz.

After moves down and then up, gold finished $2.60 or 0.16% higher in New York yesterday and closed at $1,643.80/oz. Gold fell some $10 as the FOMC meeting commenced prior to going positive.

Gold gradually eked out gains in Asian and early European trading prior to seeing some weakness.

Cross Currency Table – (Bloomberg)

Support for gold is at $1,612/oz and resistance is at $1,663/oz and $1,684/oz.

Gold climbed on Thursday on concerns that the Fed could employ more QE in a further attempt to stimulate the economy. The Fed said that the economic conditions “are likely to warrant exceptionally low levels for the federal funds rate at least through late 2014”.

Continuing ultra loose monetary policies and negative real interest rates continue to support gold.

The Fed has already engaged in 2 rounds of asset purchases near a massive $2.3 trillion, to drive down interest rates and in a vain attempt to stimulate the US economy. QE helped push up both equity and commodity prices by providing cheap money to investors who placed it in riskier assets.

Thus, QE is leading inflation pressures and there is a risk that the Fed, like other central banks, continues to underestimate the risk of inflation.

Bernanke said US monetary policy was “more or less in the right place” even though the central bank would not hesitate to launch another round of bond purchases if the economy were to falter.

Investors will examine efforts by Europe to solve the debt crisis after ECB President Mario Draghi called for a “growth compact” but put the blame on euro zone governments to sort out their economies.

The eurozone debt crisis is far from resolved and the next stage of the crisis could be even more volatile than the recent Greek saga.

Gold Standard Inevitable, Possibly Within Year –  $10,000/oz Looms
Reuters TV have interviewed John Butler who says a return to the gold standard is “inevitable” possibly as soon as within the year and $10,000/oz gold is on the cards.

Jamie McGeever interviews Butler in the Goldsmith Hall in London about his opinions propounded in his new book, ‘The Golden Revolution : How to Prepare for the Coming Gold Standard.’ 

Butler has 18 years’ experience in the global financial industry, having worked for European and US investment banks in London, New York and Germany.

The book says that the era of paper currency is coming to an end and a return to a gold backed dollar is basically inevitable.

McGeever starts the interview by saying that far from gold being expensive at $2,000/oz, gold may be “the bargain of a life time” especially “if the world returns to some form of gold standard.”

Butler says that this “could happen as early as next year” due to BRIC nations dissatisfaction with the dollar reserve standard, “they will start to move formally back to gold”.

There are many ways that this can happen according to Butler including one country becoming a first mover, surprising the world and the United States, by pegging its currency to gold

He points out that Russia may be the country who could do precisely that.

This could lead to a run on the US dollar and financial assets and could see the dollar lose 20% in 24 hours as investors pour into real assets such as oil and gold. This could lead to a depression in the U.S.

There could be a Bretton Woods style “crisis meeting” where the U.S. decides it must reinstate the gold standard or else the dollar “may lose its reserve status entirely.”

Gold at $5,000/oz should happen and possibly over $10,000/oz in that scenario as gold will be a “de facto monetary asset in cross border balance of payments transactions”.

Reuters’ McGeever acknowledges how the “gold market is tiny” compared to “trillions and trillions of dollars worth of cash and assets sloshing around the world financial system.” He asks how can countries back “all of that” against such a “tiny and finite amount of gold?”

Butler responds by saying that “the amount of gold is finite by weight or volume, it is not finite by price.”

If gold is going to be remonetised it is entirely reasonable that “gold’s price will rise by an order of magnitude.”

Butler correctly points out that if gold were to rise to over $10,000/oz then in fact what you would have is a market capitalisation of gold, as it were, vis-à-vis the money supply and credit volume generally which is in line with a longer term comparison – it implies stability.

It is another must watch video and shows how consciousness regarding the value of gold as a finite asset and currency is gradually shifting with obvious ramifications for all who wish to protect and grow their wealth in the coming years.

Far from gold being a speculative bubble, as suggested by less informed economic experts and financial advisors, it may remain undervalued at below $2,000/oz and may be destined to reach much higher levels as gold reasserts itself as the global currency par excellence.

(Bloomberg) — IShares Silver Trust Holdings Unchanged at 9,552 Metric Tons 
Silver holdings in the IShares Silver Trust, the biggest exchange-traded fund backed by silver, were unchanged at 9,552.14 metric tons as of April 25, according to figures on the company’s website.


April 25   April 24   April 23   April 20   April 18  April 17

2012       2012       2012       2012       2012      2012


Million Ounces     307.108    307.108    307.108    307.108    309.827   309.827

Daily change            0          0          0 -2,718,365          0 1,456,383


Metric tons       9,552.14   9,552.14   9,552.14   9,552.14   9,636.69  9,636.69

Daily change         0.00       0.00       0.00     -84.55       0.00     45.30


(Bloomberg) — Gold Futures Rally, Silver Climbs 1.1% After Fed Statement
Gold for June delivery in New York rose 0.2 percent to $1,644.80 an ounce at 8:19 a.m. in Melbourne, while bullion for immediate delivery was little changed at $1,644.13 an ounce.

The futures declined yesterday after the Federal Reserve reduced its forecast for unemployment and refrained from providing more stimulus measures at the conclusion of a two-day meeting, easing concern that inflation will accelerate.   Silver for July delivery climbed 1.1 percent to $30.76 an ounce.

For breaking news and commentary on financial markets and gold, follow us on Twitter.

Gold Extends Advance on Optimism Fed to Do More to Spur Growth‎ – Business Week

Gold edges higher as dollar weakens – MarketWatch

Gold Edges Upward In Asia; Range Trade Expected – Wall Street Journal

U.K. Succumbs to First Double-Dip Recession Since 1970s: Economy– Bloomberg

Rogers: U.S. to plunge into severe recession in 2013 – Reuters

Could the gold standard be making a comeback? – MoneyWeek

Embry – Market Manipulation More Blatant & There’s More of It – King World News

The home-currency problem in the euro area – Reszatonline

Yetsenga Says Euro Approaching Tipping Point – Bloomberg

  1. butler’s kind of saying what sinclair has said as well as to the why. 
    have to see how this all works out, you know the dollar power forces aren’t going down without pulling out all aces up their sleeve.  (ie: gunboat diplomacy if not war itself; sanctions; new and improved gold suppression schemes; etc).
    time frames are tricky due to this.
    since this is a silver site if gold does shoot to $10,000 – wonder how far silver gets pulled along on the ride?

  2. No, 40 oz.   Brother John has commented on this….Gold in OUR money, not hyperinflated money, should be a 5 digit price.  It’s only not due to manipulation.  Gold should be between 10,000 and 20,000 right now, with bread at $3 a loaf.

    Likewise, Brother John has shown that silver should be a 4 digit price, right now.  Silver should be $1,000 at least, with bread at $3 a loaf.

    If bread goes to $100 a loaf, silver could be 50,000 or $100,000. 

    We’re not talking about simply maintaining your purchasing power for two reasons:

    1) It’s not simply inflation which drives PM prices, but a combination of inflation + supply and demand.  The scarcity factor drives them up much much quicker than the rate of inflation.

    And 2) This isn’t a freely traded market.  Bread isn’t undervalued because the bullion banks don’t hold down wheat futures, do they?  Not nearly to the extent that metals would be held underwater for the purpose of protecting Interest Rates Swaps.  If you bought gold and silver in 2001….you can buy 6 times as much real estate than you could before, 6 to 9 times as many stocks, etc.

    We’re not talking about preserving purchasing power: thanks to the banks manipulation, we’re talking about purchasing lottery tickets.

  3. Come on now….I hate these kind of stories.

    While I agree the fiat system is a joke…I highly doubt that we will ever see gold PURCHASE $10,000.00 worth of goods (in todays dollars) 

    I think this type of BS story appeals to those who think they are going to get rich quick with gold and silver….NOTHING could be further from the truth.

    Gold and silver are NOTHING more than an alternate currency  –  They are, in essence, a wager that the current status quo cannot and will not be able to continue.   I would say that gold COULD go to $10,000.00  –  hell, even a million dollars….but what would that say about the underlynig economy.   Meaning,…that if it ever did go to that price….all of the other items that people need would also be higher by a factor of 10.

    Gold and silver will only, and can only protect what wealth you have….(if you are lucky enough to have any)

    So…keep  stacking….but don’t EVER expect you are going to get rich on it  –  it is nothing more than an alternative savings account…backed by something tangible with intrinsic value

  4. Shock and Aweful April 26, 2012 at 10:18 AM

    I understand what you are saying


    many of us have been stacking for many years & have a sizeable stack

    to many of us there is no point in any further stacking just for the sake of stacking

    UNLESS we can realize a finanical GAIN ( we all ready have enough STACKED insurance)

    yes i know some will say you can never have enough – but you can get to a certain point where

    unless some one strikes a neat coin or bar that strikes your fancy another 200 or 500 oz dosent

     mean much at 50 or 60 to 1

  5. The dollar losing its reserve status, gold moving outside the hands of manipulators, a forced gold standard are all potential drives of this phenomenon of gold moving to $5,000 or even $10,000 an ounce.  If you look at the 30 year cup formation chart of gold and silver, just the inflation adjusted price of silver at $400 and gold at $8,000 would present a reasonable argument for these prices.   I would not speculate on this happening but I think it can happen in the near term 1-3 year period. 

  6. I’m with you guys 427 and Shock and Aweful… I don’t see this happening in the manner stated…. That would be a entirely unrealistic number for gold to essentially just appear at almost over night… And if a return to the gold system were to happen here in the states they would have had to start that process years ago…. Lets face it, the US government can’t by a roll of toilet paper with out every tom, dick, and jack ass holding studies on the effects of that toilet paper then test on the paper specs vs a sheet of armor in the event it’s blown up… Oh and lets not forget how that roll of TP will impact the environment in the event we have another ice age…. Or will it disturb this rare species of squirrel that lives in one tree that could be cut down if Tiger woods were to ever build a log cabin within 10 miles of it… So if all that has to happen to buy TP for our fun hole then I don’t see us just out of the blue going back to a gold standard at the drop of a hat… Although I would love if we did return to a backed gold dollar along with a corrected gold price of many dollars an oz… I just do not see it in the cards anytime soon…  

  7. 95% of all the gold ever mined still exists in vaults and safe deposit boxes around the world. IOW, there is a lot of gold out there.
    I like silver better, 95% of all the silver ever mined is gone, used up in industry and thrown into the landfills. When it’s apparent to everyone that it is going extinct, look out.

  8. How about a future joint coalition of stackers who come together to build communities around a peoples’ bank using their stacks of bullion and junk?  This could happen in numerous communities throughout the continent.  Banking isn’t any more evil than money.  It is the idolatry of money that is the root of all evil, and the same goes for banking.  If we use money as a medium of exchange in society, we have need of transformers, resistors, and capacitors in that “circuitry”.  Banks are important.  There used to be honest bankers.  I imagine it’s very difficult for such a person to survive in this climate, but “bank” does not equal “evil” necessarily. 
    This is the only way I can see that the value of stacking can be recognized.  Those of us with the foresight will be able to lift ourselves and our neighbours our of the catastrophic mire and build a (much humbler) realistically sustainable community.  We’ll be the newer world order, and in fact, this could be a form of the meek inheriting the earth.  Are we mature enough to become the new stewards of evolution earth, using money fairly and honestly, as God created it?
    I look forward to asking Brother John about this “vision” of mine when he returns from hospital.

  9. Yes l believe that gold will hit $10,000/oz and silver $400/oz, but other prices will also rise (but not by the same amount). I do not believe there will be a return to the gold standard because nothing can store it’s value – prices always change relatively to other prices. The government needs to change its borrowing behavior and encourage people to save.  

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