5000 goldThe financial crisis has been a fixture since 2008 when Lehman failed.  The crisis became acute when QE began, and later the hyper monetary inflation was clear as permanent  In the last several months, the perma-crisis elevated in danger level, from a skein of high risk critical extreme events.
The Gold price will rise dramatically in the future from numerous powerful forces and factors.
The following factors are directly relevant as to why the Gold Price will rise to $5000 per ounce, then higher.   At the same time, the Silver price will rise multiples higher. The gains for Silver will most likely be a greater multiple than seen on the Gold price rise. 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. Therefore the accounting is replete with double counting and outright missing accounts in false reporting.
The following are 13 fundamental and locked-in-stone reasons why gold will first hit, and then surpass $5,000/oz.

2013 Gold Maples As Low As $34.99 Over Spot at SDBullion!

Gold Maple

By Jim Willie, GoldenJackass.com

Back in November 2003, before the Hat Trick Letter was hatched and launched, a seminal article was written about 25 reasons why Gold will rise. It was updated afterwards, around 2008 with a couple more reasons. Given the extreme situation in the last few months, the entire outlook has changed. The gnarly intractable crisis began in late 2008 when Lehman Brothers failed, Fannie Mae was nationalized, and AIG was given a nationalist prop. In the last several months, the crisis has entered a new elevated level of perma-crisis and constant tension, widely recognized as something more serious, dangerous, and risk-filled.

 

The key changes that mark a quantum change in the global environment for Money, Banking & Gold are many. Taken collectively, they are truly impressive and mindboggling. The new normal is deep constant crisis without resolution, nor the attempt to resolve anything. The banker power structure refused to endure liquidations. They will be forced upon them, consequently. The elevated sense of urgency, greater degree of distress, and higher risk of systemic breakdown are the result of many developments. They are largely due to:

  • ZIRP Forever & QE to Infinity (hyper monetary inflation forever)
  • Negative Gold Forward Rates & Futures Contract Backwardation
  • Arab Spring & Instability across Middle East & North Africa
  • Bail-in Plans for Western Bank Account Confiscation
  • Monthly Gold Market Ambushes
  • COMEX Vaults Going Empty
  • Exposure of Derivatives as Bank Sector Point of Vulnerability
  • Constant Pressure for Intervention & False Support of Financial Markets
  • Draghi Bond Solutions Declared Invalid
  • Unresolved Debt & Deficits in Southern Europe
  • Recognized Dysfunction of USGovt Spending
  • Infiltration of Chinese Yuan Swap Facilities into Western Nations
  • Renegade G-20 Meetings with Gold Trade Settlement as Key Project
  • Birth of EurAsian Trade Zone with Pipeline Infrastructure
  • Revelation of Widespread Security Eavesdropping

 

The entire world has changed with respect to money, banking, investments, and the rules that govern wealth. The Hat Trick Letter is not concerned about legal matters, nor politics. The newsletter is focused on matters that affect the USDollar, major currencies, sovereign bonds, banking systems, economies, trade, and precious metals. No serious analysis can proceed on Gold & Silver without analysis of the other concepts, since all are integrated.

 

SHORTAGE

The following factors are directly relevant as to why the Gold Price will rise to $5000 per ounce, then higher. At the same time, the Silver price will rise multiples higher. The gains for Silver will most likely be a greater multiple than seen on the Gold price rise. 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. 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.

 

GOLD PRICE FACTORS

1. Interest Rate Derivative Meltdown & Damage Effect from Rising TNX

 

The London Whale of JPMorgan’s London office is responsible for giving it publicity. The Interest Rate Swap is a key device used to control interest rates, especially the long maturities. It is a complex mechanism. Final demand is artificially created. Morgan Stanley has served as the Wall Street harlot for years, executing the IRSwaps, fabricating USTreasury Bond rallies out of thin air. The leverage within the device is between 50:1 and 100:1 in usage. Small moves in the bond yield (like 30 to 50 basis points) can cause great disruption. We have seen a 130 basis point move in the USTreasury 10-year yield since May. Some big derivative accidents with ten whales will be sighted soon. The safer haven is the nemesis Gold bullion.

 

2. Reversal of USTreasury Bond Carry Trade & Convexity Effect on TNX

 

Since year 2009, the Fed Chairman Bernanke encouraged the big US banks to replenish their balance sheets with easy leveraged carry trade. They borrowed the free money on the short end near 0%. Then they invested in the 10-year USTreasurys. The Excess Reserves held at the USFed itself obscured the central bank’s insolvency, obtained as profits from the carry trade. Now with rising bond yields, the damage is enormous, as the losses are approaching catastrophic levels (hidden), the process in reverse gear. The losses are magnified by leverage. The big US banks are in a rush to unwind their USTBond carry trade, which relied upon futures contracts for leverage. The easy money has converted into massive losses. The better investment is the nemesis Gold bullion.

 

3. Indirect Exchange: USTBond Returned to Sender & Eastern Infrastructure Build-out,

the Inflation Finally Imported after 30 Years of its Export

 

In numerous large projects, the payment between two parties is turning out to be in the form of USTreasury Bonds more often. This is true for Rosneft acquisitions and African asset purchases, along with numerous smaller projects. The Brazilian OGX liquidation will see more of the same pattern. The payments in USTBonds are then converted to cash to the party selling the asset. The USTBonds are returned to sender, usually a New York or London bank. The exported inflation from the United States Govt avoided any direct strong effect on price inflation for the USEconomy, since exported debt. When it returns after 30 years, the inflation will be an imported effect, a massive delayed effect. The Gold price will respond to the USTBond being dumped, the rising bond yields, and the price inflation caused by the USDollar devaluation. The true inflation hedge is the nemesis Gold bullion.

 

4. Bank Bail-in Executions & Private Account Confiscation

 

The Cyprus bank confiscations provided the adopted model for the Western banking world. The Bail-in will in no way restore the solvency of big banks, whose derivative losses are typically 50 to 100 times larger than private accounts held in deposits. When the United States and Western Europe, along with Great Britain, impose the bail-in confiscations at whatever percentage for account reductions, the fury and panic will be very visible. People will realize that private funds held in insolvent broken corrupt

War Bird

banks are not safe. They will remove money from accounts, whatever is left, and seek Gold instead. The true safe haven is the nemesis Gold bullion.

 

5. Fall of House of Saud & Demise of Petro-Dollar & Rise of NatGas Coop

 

The Saudis are special in their command post at OPEC, and for colossal trade surplus recycling into USTreasury Bonds, US bank stocks, and US property. The Saudi regime has become unstable, due to many factors. Cite price inflation (food in particular), lack of reforms tied to Islam rules, targeted appropriation thefts by the princes, diminished national surpluses from the oil business, and a basic problem with succession of power. Apparently King Abdullah has recovered from a coma, his condition uncertain. The conditions for oil purchase being in USDollar payments cannot be assumed to continue much longer. The OPEC itself might fall victim to the Arab Spring disruptions, and bend toward other currencies in oil payments. The rise of the Natural Gas Coop is the biggest energy related geopolitical story in decades, linked integrally with the pipeline constructions, battles, and controversy. As the Petro-Dollar defacto standard falls to the wayside, the true standard in trade will be the nemesis Gold bullion. Arabs including the Saudis, in particular the Persian Gulf oil producers, will chase Gold with a passion, when they discard the USTreasury Bonds and pay homage to the new protector, China with Russia beside it. The longstanding favorite form of wealth held by Arab has for centuries been Gold bullion.

 

6. BRICS Bank as Gold Trade Central Bank & USTBond Conversion to Gold (G-20)

 

It was born as the BRICS Development Bank for construction projects extending from the alliance of Brazil, Russia, India, China, and South Africa. It later changed to the BRICS Bank. It will eventually become known as the Gold Trade Central Bank, the main processing center for supplied USTreasury Bonds accumulated by the emerging nations, converted to Gold bullion. At this point, the BRICS Bank is gathering in funds, typically in USTBond form. The details will be revealed in time, but this bullion bank will become a behemoth, and the core to global trade stability. The member nations will direct their FOREX reserves, largely USTBonds, into the BRICS Bank. The ruse is that infrastructure projects is cited in order to divert attention from US & UK attacks. The conversion of USTBonds for Gold bullion will make for a historically significant event in the Paradigm Shift for commerce and eventually banking, in brutal fashion, as USTBonds are redeemed (liquidated) for Gold.

 

7. USDollar Devaluation & Global Split by Defiant Foreigners

 

As the USTBonds are discharged from Eastern banking systems, the effect on the USTreasury yield will be pronounced. Whether for basic diversification of banking and FOREX reserves, or for payment of large project acquisitions, the effect will be the same. The USDollar must adjust in its exchange rate, and be devalued. In order to prevent staggering global price inflation, the foreign held USDollars must split to create a foreign USD and domestic USD. Foreign institutions will balk and object and resist a forced devaluation, having no part of it. The devaluation effect will be isolated to the USEconomy. The foreign defiance will reject the notion of a devalued USD outside the USGovt jurisdiction control and policy. The USD split will lead to the birth of a domestic USDollar, devalued by 30% at first, then later another 20% or 30%. The price inflation inside the USEconomy will be obscene. The true inflation hedge is the nemesis Gold bullion.

 

8. Banking System Meltdown & Default of Sovereign Bonds

 

The big Western banks have been insolvent for five years, actually since Lehman failed. The damage from Mortgage Bond investments was staggering across the world.  The altered FASB accounting rules allowed the big US banks to operate as zombies, with doctored gimmicked balance sheet accounting. The cratered sovereign bonds of Southern Europe was the second major blow. The final blow is the combination of USTreasury Bond losses, tied closely with bank derivatives. Many derivatives are FOREX currency swaps, but ironically using Gold as a currency under contract. But the deadly damaging derivative is the Interest Rate Swap. The lost control of the USTBond is a big bank death knell. The best secure asset held in a bank or elsewhere is Gold bullion, seen slowly in new Basel Rules.

 

9. Discovery of Allocated Gold Account Thefts & 40,000 Missing Gold Tons

 

The demands for official gold account repatriation, first by Venezuela, lately by Germany, has caused a global problem for both governments and elite families. The exposure has extended to bullion banks and elite wealth funds, supposedly safe in accounts for the former, and supposed backed by redeemable gold for the latter. The gold is not there. The gold is not safe. The gold is not redeemable. The Backwardation in Gold futures pricing and the negative GOFO forward rates are glaring symptoms of the broken COMEX. For over 20 years, the major central banks of the United States, England, Switzerland, and Western Europe have colluded to lease and sell the official accounts and to abscond with private bullion accounts. My source The Voice estimates the missing illicitly leased gold from Allocated Accounts is at least 40,000 tons. The redemption demands will escalate. He calls it the climax scandal in banking that will catapult the Gold price to its proper value, at least $5000/oz and more likely to $7000/oz. The central banks and their accomplice bullion banks will be required to replace the improperly accessed gold for the official accounts and elite private accounts. The catapulting Gold price will reveal the beginnings of the true value of Gold bullion.

 

10. Discovery of Western Central Bank Fractional Gold Management,

Contrasted with Gigantic Eastern Central Bank Gold Reserves

 

For decades, the known function of banking systems has been to use fractional methods. Between $10 and $20 is extended in credit, for every $1 held in deposits. The new money has collateral in the bank deposits. The dirty secret is that the central banks and their partner bullion banks have carried out fractional bank methods in the gold storage business also, against the wishes of clients (both government official accounts and private individual accounts) in illicit manner. They have replaced the leased gold bullion with gold certificates of dubious value, since the leased gold was used to suppress the Gold price by massive systematic dumping. As the gold bank practices become better known, as Andrew Maguire pointed out with 100:1 ratio of certificates versus physical bars with serial numbers, the Gold price will skyrocket. Meanwhile, the Eastern central banks are accumulating far more rapidly their gold reserves than they admit, since they wish to lie to the Westerner Bankers and their Government poodles after enduring so much fraud. The scramble is on for gathering the gold bullion, which has true value, made abundantly clear during the collapse of the sovereign toxic bonds that support government debt in the West. Gold is the true wealth, not subject to fractional tomfoolery.

 

11. Movement away from the Traditional USDollar Trade Settlement &

Widespread Adoption of Yuan Swap Facilities in Bilateral Trade

& Climax in Gold Trade Settlement with the new Gold Standard Adoption

 

The USDollar is actively being avoided in many trade flows. The Iran sanctions only served to hasten the USD alternatives in development. The Chinese trade partners have been using Yuan currency in settlement on a net basis among the designated large banks on a bilateral basis. In doing so, the Yuan Swap has permitted much of the world to be weaned off the USDollar. In the last year, new partners to the Yuan Swap Facility have been Australia, England, France, Switzerland, and the latest Germany as the Euro Central Bank site, hardly Eastern enclaves. The G-20 Nations are busily putting the platforms, cables, and wiring for a new peer-to-peer system, a de-centralized trade settlement system where trade is settled on a net basis with gold bullion. The G-20 Meeting has shown defiance, determination, and dedicated agenda to build the required platforms in gold trade settlement. The system will use Gold Trade Notes as letters of credit, and rely upon gold banker intermediaries such as Turkey to settle trade by participating nations. As the Gold Standard is returned via trade, the banks and FOREX will be forced to follow suit. Gold will rise in a grand ascendance to retake its proper place, from Eastern directives with the Gold Trade Standard.

 

12. Rise of EurAsian Trade Zone & Expansive Energy Pipelines

 

The skeleton is coming into view in the form of energy pipelines, vast networks to delivery crude oil and natural gas. In addition, several important liquefied natural gas facilities dot the ocean ports. The core is to be Russia & China & India, along with Japan and South Korea and Taiwan, as well as the entire Pacific Rim. They are banding together. They do not wish to save in USTBonds. They do not wish to settle trade in USDollars. They wish to relax tariffs and inspection methods. The Asians are in a unique hidden battle to capture Europe as a gigantic trade partner. Europe is the global grand prize. The United States is locked in a struggle to retain its European allies, firm trade partners for 60 post-war years. However, US banker fraud and a certain dose of ill-willed hegemony with power politics have tilted Europe toward Asia. Heavy railroad lines have been completed from Russia to Germany. Numerous Russian Gazprom pipelines will ensure British and Western European cooperation. The diverse pipelines have displayed the sour motives of the US & UK tagteam fascists. The core to Eurasian trade will not include the United States, and will be centered in gold as the medium of exchange and saving.

 

13. Explosive Growth in Demand for Coins, Bars, Jewelry across Entire World

 

buff sale(2)

The growth for various forms of precious metals at the retail level had been brisk before the turn of 2011 when Quantitative Easing was introduced. The bond monetization is hyper monetary inflation by any other name. The zero bound interest policy kept the pressure on retail Gold & Silver sales across the world, including in the United States and Europe. The Swiss refineries could turn out to the be final breaking point in the interventions that prevent Gold from taking its exalted position in banking and currencies. Since QE became the norm, and after it became clear that QE to Infinity would be the permanent policy, the growth for retail precious metals has turned exponential. The most recent jet assist to retail demand has come on the back end of the April and June Gold market ambushes, where naked shorting is more understood to be the main method of price suppression. Demand has risen in direct response to both lower price and vanished trust in the system, including gold futures contract delivery. Like all Gold bull markets in the past, the investment demand breaks the spine of the illicit gimmicks and banker conmen criminal set. The population will demand Gold & Silver bars, coins, talens, biscuits, and jewelry. 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.

 

THE HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.

From subscribers and readers:

At least 30 recently on correct forecasts regarding the bailout parade, numerous nationalization deals such as for Fannie Mae and the grand Mortgage Rescue.

 

“I commend the Jackass for being the most accurate of all newsletter writers. Others called for the big move in Gold right away, but you understand that the enormous fraud in the system needs to play out before free market forces can begin to assert themselves. You seem to have the best sources and insights into the soap opera that is our global financial system. Most importantly, you have advised readers to be patient, stay safe, and avoid mining shares like the plague. Calling the top in the USTreasury Bond (10-yr yield at 1.4% yield) stands out as a recent fine accomplishment. The Jackass understands the markets, understands the fraud, and also has the sources to keep him the most up-to-date on the big geopolitical and financial events and scandals. Few or no other writers have all three of these resources.”

(Austin in California)

“After first reading the Hat Trick letter a few years ago, I was amazed at Jim Willie’s prophetic calls concerning the economic forgery and corruption worldwide. His knowledge, coupled with his worldwide contacts and gutsy fortitude to call out and expose the evil criminal bankers, and to expose the lying US government, forced me to become a subscriber. I have no plans to cancel. Willie’s work creates an anticipated excitement for new reports issued in the middle of the month.”

(JeffH in Virginia)

“A Paradigm change is occurring for sure. Your reports and analysis are historic documents, allowing future generations to have an accurate account of what and why things went wrong so badly. There is no other written account that strings things along on the timeline, as your writings do. I share them with a handful of incredibly influential people whose decisions are greatly impacted by having the information in the Jackass format. The system is coming apart on such a mega scale that it is difficult to wrap one’s head around where all this will end. But then, the universe strives for equilibrium and all will eventually balance out.”

(The Voice, a European gold trader source)

 

Jim Willie CB is a statistical analyst in marketing research and retail forecasting. He holds a PhD in Statistics. His career has stretched over 25 years. He aspires to thrive in the financial editor world, unencumbered by the limitations of economic credentials. Visit his free website to find articles from topflight authors at  www.GoldenJackass.com. For personal questions about subscriptions, contact him at  JimWillieCB@aol.com

  1. Yaaaa … an ounce of gold will be worth 5,000 dollars!

    Hold on, hold on … as a silver saver, perhaps I ought to rather BOOOOOO!

    “DOLLAR: The unit employed in the United States in circulating money values. It is coined both in gold and silver, and is of the value of one hundred cents. Thompson v. State, 90 Rex. Cr. R. 125, 234 S. W. 406, 408″ –Blacks Law Dictionary, 3rd Edition (1933)

    “DOLLAR, money. 1. A silver coin of the United States of the value of one hundred cents, or tenth part of an eagle. 2. It weighs four hundred and twelve and a half grains. Of one thousand parts, nine hundred are of pure silver and one hundred of alloy. Act of January 18, 1837, ss. 8 & 9, 4 Sharsw. Cont. of Story’s L. U. S. 2523, 4; wright, R. 162.” –Bouvier’s Law Dictionary, 1856 Edition

    Speaking in REALITY, then, Mr. Willie is saying that gold of the governments and banks will command 5,000 of my ounces of silver? Holy crap! That sucks … BIG TIME.

    Then all the elders of Israel gathered together and came to Samuel at Ramah, and said to him, “Look, you are old, and your sons do not walk in your ways. Now make us a king to judge us like all the nations.” Thereafter Saul was annointed their king, “like all the nations”. Thus they chose Man over God to rule their ways.

    I point this out because government is given this Power to ‘fix’ the silver dollar ‘value’ of gold, without stipulated reference to the natural order of God’s Nature, but in blatant spite of it if it deems. People will cheer in exhalt if government were to declare the end of the ‘Fed’ and its evil banknotes, but come to bitterly rue the event under such condition.

    ‘Be careful of what you wish for, as you may just get it.’ This is the danger of choosing Man’s rule over that of God (Naturally Existing Order).

  2. 1 Reason why it won’t in the next 10 years. Because no one is dumb enough to think that Gold is worth $5000. Something is only worth something, when it is perceived to be worth that amount. Its more about perception than facts and figures. I think that Gold will rise, beating inflation, but $5000 is stretching it a bit.
     
    If inflation keeps going at around 5% year on year, then that would only make something worth around 70% more (rough figure, can’t do compound interest in my head :) ) in 10 years time. And prices as we all know, don’t follow a linear curve when it comes to inflation. Using current prices ($1375) and increasing by 70% gives us $2338 and that is a naive guest where everyone plays fair. Stick in a financial disaster which would give us $662 (just to make my number as round as Dr Willie) gives us $3000.
     
    So yes Gold will go up, but in no way am I stupid enough to bet the house that it will reach $5000, maybe $3000 in 10 years time, and that’s a massive guess, which my gut instinct tells me $2000 min.

    • Who is the buyer…all very well for paper to go paper high, but the physical will be hard to shift if wages don’t increase at least in line with inflation. 10 years of below inflation wages, and 10 years of gold rising way higher than inflation, you are going ostracize a major portion of the General public, the ones who are the ones who would normally buy your sovereigns and 1/4 gold bullion coins, let alone the 1 Troy Oz coins.
       
      The market will not bear the price. Not in the next 10 years. Maybe the paper market, but no way the bullion market.

    • your estimates sound reasonable if the status quo remains.  however, I believe the 5K and beyond guesses we hear are predicated on an increasing collapse of the status quo that will basically leave only PMs standing as a store of value.
      if dr willie is correct about the Gold Trade Notes–and this appears to be coming from inside sources–then I will wait to convert my PMs into some of those.  F the dollar or any other fiat exchange.  I did not get PMs to gain more of that toilet paper.

    • It won’t be the general public that increases the demand and therefore price, WFS. 
      The bulk of humanity will ‘wake up’ when it’s too late to do anything bar gather survival knowledge and equipment.
       
      How many ‘paper millionaires’ would it take to set off the ‘silver bomb’, causing the remaining paper millionaires to follow suit?

  3. It is almost as if tptb raised, manipulated gold, silver higher last five years then smashed it down this year to make money for themselves via paper trading, because they can, to make up some losses from 2008. They even seem to create “history” to provide a narrative to legitimize their actions. Right? There is such a censored black hole in science and news events, one can only guess. Godless heathens are gullible for the obvious, but practicing Good News Christians with Sanctifying Grace always look for the misdirecting, half lying cloven-hoofed influences on the all to happy to sell their soul crowd.
    In this case, watch the WH and not the FED to create some narrative to solve a few “problems”. Latest manipulated ups and downs are “normal” for the chart making heathens…but what of NASDAQ’s “flash freeze” yesterday? Hacks last few weeks? Definitely more brazen since Snowden’s revelations. Could the Commies really be spitting in the wind and tptb are in a bind right now? Or is our own NSA types creating narrative for the next move (typical)? These developments have made the chess board much more interesting since the US is being outed in a spectacular way!
    I still say stocks will hit 20k on the Dow, no cataclysmic death spirals anytime in the next 3 years, and the opposing gravity will be apparent on you know what…but that Snowden elbowed some pieces off the grid and they are trying to “recreate” the grid positions from “memory”. 

  4. Believe it or not, if a prisoner had been receiving hormone shots to grow ta ta’s, the BOP must continue the gender transformation hormone shots while incarcerated. Shots and sport bras all on the American taxpayer. I really do not think he had been getting those shots as he was on duty in the Army…but I think he is prison gay now. He probably should just tatoo some ta-ta’s on his back and call it a day…sequester you know. 

  5. There is a certain logic to Willie’s contention that gold will hit $5,000. Gold was $300 10 years ago and now it’s $1,370.  $5,000 is 300% greater and that is entirely possible  The gov stats say inflation is 2% The real inflation is closer to 10%.  Gold outs that government lie. It may even speak to the 10% inflation rate stated via Shadow Stats. I think the QE’s monetary inflation is disclosed by Gold. Gold tells the truth of inflation and the safety factor embedded in its real value. 
    What of the dollar if gold hits 5,000?  A bad situation for everyone not holding gold.  A potential for dollar devaluation and a new or alternate reserve currency? Maybe.  Oil at $200 an barrel? Oil may not be valued in dollars at all.  What becomes of this country then?  Steve deAngelo talks about that EROI factor. An EROI under 10 is destructive to entire countries.
    That could be a telling equation if the Petro dollar system shifts to something else, such as a petro gold standard.  This gold trade system does represent a signficant amount of trade for petroleum, used by China, Japan and India to access Iranian oil. These same countries are dumping USTs and dollars in $50,000,000 tranches on a monthly basis, trading them hard asseets.
    How this all plays out is unknown but gold will increase in value soon enough, and for some the same reason it went from $120 or so in 1976 to $800 in 1980.  This lull in the gold and silver prices are temporary, subject to many of the same forces that cause the pullback in precious metal prices in 1976.  A short time later the prices climbed 500% and more.

    • The path of the gold price isn’t linear, yes it was $300 dollars in 2003, but 3 years later it was $600. Today after 7 years later on from 2006 the price is $1375. I don’t think we can assume a linear path for the price of gold in the coming years. I equally don’t assume any other type of path either, Fibonacci or any other type of chart analysis seem not to work.
       
      2009 price of gold was around $950, 2012 price of gold was on average over $1600
       
      just using these data points gives you
      2003 $300
      2006 $600
      2009 $950
      2012 $1600
      2013 $1375
      this gives you a step increase each year of :
       
      $300
      $350
      $650
      -$275
       
      There is nothing to say that the price of gold will drop another $300 dollars next year, and climb the next.
       
      If gold is a true barometer of the value of the dollar, then what happens when the price of the dollar rises in the face of gold?
       
      Do you give equal measure as favorably to the dollar as you do to the rising price of gold, or do you cry “no fair!”. My argument being is that if you do think gold represents the true value of the dollar, then you must be prepared for the barometer to show declines as well as inclines.
       
      No doubt in my mind about the gold price going up, just that I choose to be skeptical until it proves me otherwise. 

    • I am thinking that the “price” of gold as measured in US dollars doesn’t matter a rats’ royal red patootie.  For me, gold is THE standard in world monetary affairs.  As a standard, it’s value does not change.  All else floats in price, however, so those values DO change… including the values of various fiat currencies.  Gold is not rising in price so much as paper currency is becoming LESS valuable, so more of it is required to buy a fixed amount of gold.  We are seeing this in spades now in the Indian rupee.  It is being absolutely hammered now, so gold prices in rupees is moving up very quickly… or at least it appears that way to those holding rupees.  This is getting so bad that the Indian government seems to be pulling out all the stops to slow the buying of gold by Indian citizens.  If they could ban the sale of gold in India today without facing an enormous political backlash, I am sure that they would do it.  Not wanting a full-blown revolution on their hands, however, prevents this unwise action.  The bottom line seems to be that Indian citizens want gold and as much of it as they can get.  They are willing to trade a lot of rupees to get it, too.  Too many, insofar as the Indian government is concerned.  But what to do about it that is actually possible and effective?
       

    • Ed_B  … “the Indian government is concerned. But what to do about it that is actually possible and effective?”

      ED, They can do what all countries ought to do with their basic currency units … convert the rupee back to a coin of naturally relative intrinsic value to gold, such as copper. If they further remove the fiat numeric definition and inscribe only its composition, fineness and weight … the value would FOREVER be a fraction of gold according to their mine recovery averages. Beyond that, the coin would vary according to local supply for short times while they’re expended or accumulated in circulation.

  6. Godless heathens are gullible for the obvious, but practicing Good News Christians with Sanctifying Grace always look for the misdirecting, half lying cloven-hoofed influences on the all to happy to sell their soul crowd.
     
     Thomas, there well may be some Christians that are astute about current events. I am convinced we are a product of the information we ingest. Many Christians tune in to FauxNews and can’t even recognize what a hate filled refuse pile of lies/half-truths they put out there. Continual demonization of the poor, the elderly and minorities while always supporting war. Theres nothing Godly about most of their positions. So though some Christians may see thru it, many swallow all the garbage they put out.

  7. Most seem to poo poo $5000 gold but when you take into account the dieing fiat currencies, and the need for “backed by something” monies, gold and silver seem to me anyway, the only logical choice. If, no, when this happens, metals will have to be exponentially greater in price to accomplish that end. All this considered, there could very well be $5,000, $10, 000……..$50,000 gold! Metals are the only logical choice to back a currency, and it can’t do that at these levels. It will have to explode in value to be able to keep world currencies afloat. After all, fiat is worth almost zero but perceived value is large so if perceived value of paper can be great, then perceived value of gold could be greatly inflated and accepted as well.

  8. Jim Willie my guru  ! here is more
    1. BRICS
    2.HATE for the US in the Muslim world
    3. US Vets getting screwed
    4.Confidence in the Banks &  Gov
    5.When America being primary racist wakes up and  recognize who the real  enemy is..
    6. Read Veterans New Today daily for how the US military Veterans Think
     

  9. @UglyDog
    I apologize for judging too quickly on the 2014-2015 Blood Moons that are going to occur on Jewish Feasts.
    While I believe we can’t predict Jesus’ return, I do believe there might indeed be something to this blood moon phenomenon
    Joel 2:30-31: And I will shew wonders in the heavens and in the earth, blood, and fire, and pillars of smoke. The sun shall be turned into darkness, and the moon into blood, before the great and the terrible day of the LORD come.

    Acts 2:20-21: The sun shall be turned into darkness, and the moon into blood, before that great and notable day of the Lord come: And it shall come to pass, that whosoever shall call on the name of the Lord shall be saved.

    • @proverbs16:16  Accepted.  Note, however, I was referring to feasts, jubilees, and judgment cycles that can be discerned from Isiah 9:10.   Earth changes as you allude to are very interesting, also.  And all SD’ers would find this of interest.  Ancient Chinese astronomers document a shift from a 360 day year to a 365.25 day year around 790BC.  Makes sense that it was once a 360 day year because we have 360′ in a circle and that was based on the sundial and these ancient Chinese astronomers were enormously precise in their measurements.  Not too much of a stretch to reason that something could have slightly slowed the orbital velocity of the earth around the sun.  Might have been a passing comet perhaps.  Interesting stuff.
       

    • @Proverbs1616 @UglyDog :
      Dont expect any return in 2015/2016.  Scripture says his return happens on a jubilee year (just like Israel first entered the promised land on a jubilee year.  Next jubilee isn’t due for another 30+ years.
      You might be interested to learn that the next jubilee year is the 120th since creation…which happens to be a perfect multiple of the number 12, and an exact 6,000 years from creation. 

      -Doc

    • @the-doc  Agreed.  More I study the more I come down in favor of post-trib pre-wrath.  However, I look at it as an interesting academic exercise and not something that should cause division.  I’ve gone through the articles you have up on TND.  Love that site.  Good food for thought.  Jonathan Cahn has a couple of excellent books the I expect you would enjoy, Doc.

    • @UglyDog :  Thanks, plan on trying to get a few more of those articles up this weekend on TND, so check back soon.
      Didn’t get much done last weekend as I spent it in the hospital passing a large kidney stone.
      Thanks for the tip on Jonathan Cahn, havent heard of him.  Will check out his work.

  10. BTW,
    same passage in Joel says this… and vs. 32 echos Acts 2:21…. :
    Joel 2:15, 18-20, 32… Blow the trumpet in Zion……, sanctify a fast, call a solemn assembly:Then will the LORD be jealous for his land, and pity his people Yea, the LORD will answer and say unto his people, Behold, I will send you corn, and wine, and oil, and ye shall be satisfied therewith: and I will no more make you a reproach among the heathen: But I will remove far off from you the northern army, and will drive him into a land barren and desolate, with his face toward the east sea, and his hinder part toward the utmost sea, and his stink shall come up, and his ill savour shall come up, because he hath done great things. ………  And it shall come to pass, that whosoever shall call on the name of the LORD shall be delivered: for in mount Zion and in Jerusalem shall be deliverance, as the LORD hath said, and in the remnant whom the LORD shall call.

    Putin, you’ve been warned.

  11. Question:
     
    The price of anything is what the market will bear. This being the case, would you honestly pay $5000 for a 1 Troy Oz Gold coin? And this the truth about prices.
     
    So you go out, and you think, hmm want to buy my Wife a new gold chain…around 20 grams…you get paid about $3000 a month, the chain is worth $3250.
     
    Seriously…if you guys reckon that gold will rise faster than the price of wages and inflation, your gone…well gone….who is going to buy something that expensive from you?

    • WaitingForSilver, while what we saw in 2011 was an aberration, it may happen again for any number of reasons.  Those of us who are more PM-savvy than we were back then, and have some ‘trading blood’ inside us, might consider purchasing some fractional gold – say, 1/10-oz & 1/4-oz – just in case this again occurs.

    • @WaitngForSilver it’s not whether anyone would pay 5 grand for an ounce, it’s what a loaf of bread will cost in US Dollars that should worry you, that is if you live in the USA. Ask the Germans about the price of a roll, or the Zimbabweans about the price of a bowl of rice. There’s a big difference in what it costs in a certain ” fiat”as opposed to what it intrinsically is worth…I really can’t make it any more succinct than that. Hope this gets you on track

  12. And for good measure to the anti-Israel crowd:
    Joel 3:1-2, 4-10, 15-16, 19-21…..   For, behold, in those days, and in that time, when I shall bring again the captivity of Judah and Jerusalem, I will also gather all nations, and will bring them down into the valley of Jehoshaphat, and will plead with them there for my people and for my heritage Israel, whom they have scattered among the nations, and parted my land….  Yea, and what have ye to do with me, O Tyre and Sidon and all the coasts of Palestine? will ye render me a recompence? and if ye recompense me, swiftly and speedily will I return your recompence upon your own head;  Because ye have taken my silver and my gold, and have carried into your temples my goodly pleasant things: The children also of Judah and the children of Jerusalem have ye sold unto the Grecians, that ye might remove them far from their border. Behold, I will raise them out of the place whither ye have sold them, and will return your recompence upon your own head:  And I will sell your sons and your daughters into the hand of the children of Judah, and they shall sell them to the Sabeans, to a people far off: for the LORD hath spoken it.  Proclaim ye this among the Gentiles; Prepare war, wake up the mighty men, let all the men of war draw near; let them come up: The sun and the moon shall be darkened, and the stars shall withdraw their shining.The LORD also shall roar out of Zion, and utter his voice from Jerusalem; and the heavens and the earth shall shake: but the LORD will be the hope of his people, and the strength of the children of Israel.  Egypt shall be a desolation, and Edom shall be a desolate wilderness, for the violence against the children of Judah, because they have shed innocent blood in their land. But Judah shall dwell for ever, and Jerusalem from generation to generation. For I will cleanse their blood that I have not cleansed: for the LORD dwelleth in Zion.

    Ok, back to silver and gold now :)
     

    • @proverbs1616   Thought you might find this of interest. Joel 3:1-2 is oft overlooked and when more properly translated (KJV doesn’t do it justice) has bearing on today’s Israel.  The word ‘plead’ is translated in other versions as ‘enter into judgment’ or ‘put on trial’ or ‘execute judgment’.  When read in that context the meaning intensifies that God does not want His land divided and judgment to those who try.  Means that U.S. is wrong to even talk about a two state solution.  Can’t happen.

  13. A black-swan event could certainly push Gold up to $5,000 overnight.
    Think of a sudden, major war in the middle-east sandbox.
    Didn’t ZeroHedge post an article & video about what would happen if iran’s nuclear capability is ‘neutralized’ by the US & Israel?
    That same event will also likely quadruple the cost of food.
    Consider the ramifications in urban areas, if this occurs and SNAP (i.e. food stamp) funding is not increased.  The SD folks who reside in large cities may have their joy over $5K gold dampened by the raging, desperate, angry mobs outside their door.

  14. Waitingforsilver   You are correct in that and we both see how non linear the price increases are.  Dropping from $1,900 to just under $1,200 was and is a real wake up to those who assumed the non stop increases will continue.  In the long pull I think we will vindicated in our decisions to buy physical metals.  The line upwards can be filled with angst and stress nonetheless. 
    My father in law also said ‘buy when there is blood in the streets’.   As a veteran who served in WWII, Korea and Vietnam, he saw that gore first hand, how  central banks destroy currency and how central governments destroy  countries.  His only substantial investment was precious metals.
    He was buying when gold was $40 and the only way to buy was under the radar.  Then it was legal and he was off to the races.

    • I hope your wrong, I really don’t want to see blood on the streets, although the way that the economy is going…its not looking like a “Brady Bunch” kind of world at the moment.
       
      I think I will just keep stacking…and hope for moderate returns in the next 20 years not bumper crops :)

  15. The price of gold and silver in dollars is irrelevant.  it could be 1 million dollars in ten years for all we know.  More importantly, what is its value against other commodities such as oil, land, cotton, etc.  In the blink of an eye gold could be $5,000.  The massive selling of dollars in foreign markets is all that would take.

    • Tig…Agreed.  Question is what would be the catalyst for a massive dump of foreign held U.S. Treasuries.  My thinking is that it will be when the dollar loses it’s hegenomy through a rupture in the petro-dollar-gold system.  Current events in the Middle East are about this very issue.  Everything else is just noise.  TPTB in the U.S. seemingly are not prepared to allow that to happen just yet, thus our enhanced military involvement in the region.  Russians on the other hand have a different point of view.  So, it’s Putin vs Obama.  Got to say I don’t give Obama much of a chance. 

  16. waiting for silver  It may sound a little unusual to talk about the silver and gold rush that took place in 1980 but my office was right across the hall from a bullion trader. We talked about this since I was vitally interested in inflation. My pay check had not moved a penny for 18 months while inflation was 1% a MONTH.  That was a hard hit to me financially.  I recall the broker saying that the fund flows into and out of precious metals (paper traded at his office) was not sustainable, or words to that effect but he was willing to take advantage of the market that existed for a year before the biggest price increases.  I was quite anxious to trade paper but couldn’t meet the capital requirements which was probably just as well.  Maybe I could have caught some of the upside but knowing myself, I would have followed the paper trade off the cliff when silver and gold dropped overnight.  His office closed immediately after the precious metals price crash.
    I had to be satisfied selling my bag full of junk bullion saved from back when I was a waiter and subsequent tossing of 90%  JB in the empty 5 gallon  Sparkletts water bottle.  That yielded several thousand in cash just before the peak.  A single 50 cent piece fetched $15  I later realized that $15 for half a dollar represented a large percentage under spot.
     The people lining up to sell were walking out with pockets of cash.  There were plenty of buyers when silver was $49 and there were plenty of sellers to boot. The family silver flowed into these shops and overnight ‘we buy gold and silver’ businesses that sprung up overnight.
    Until the crash that happened literally overnight there was a strong buyer market at $800 and $49 respectively (until there were none), and then the selling began in earnest—with few buyers in sight
    The price of gold at the peak of $800 has seen little inflation adjustment to the present price of nearly $1,400.  There were buyers at the peak then and there will be buyers with gold at $5,000.  The fear factor of people who MUST buy at any price will have them mortgage their souls to get physical.  Desperation will be the primary motivation as people flock to the market.  The price may easily be a rhino horn of  increase and decrease as the buying binge subsides.  I’m not saying it will happen the same way this time but  price thrusts are usually precipitated by desperation and price drops by expiration.  And people are pretty predictable. Those who bought Apple when it hit $700 are typical of that.
    It would be prudent to watch closely as the prices rise and set a point at which you may want to sell some phyzz to buy other hard assets whose class has dropped in value. Back then it was real estate or the stock market, both of which enjoyed a decade long surge in prices.

  17. roger your sentiments Waiting for silver. Like the droll little shills on the paper markets like to say
    “Past performance is no assurance of future results”.  
    A former girl friend used to say that to me. 
    I am a tad more certain about silver and gold, but that, like my future  performance, may take a while longer

  18. For all the store of value comments here, sometimes the argument seems a bit backwards.  Ad others have alluded it has nothing to do with how high gold will go, but how much the buying power of a dollar may shrink.
     
    i used to love getting a gallon jug full of pennies growing up, I’m saving a couple for mydaughter and in the midst of our move I look at it and think, what is the point?  All those pennies really have very little buying power anymore.

    • Can’t do that Dawg. To assist litigation for a ‘citizen of the United States’, I’d have to be licensed. THAT’ll never happen.

      I counseled my Daughter to learn the Law (and English) when she was young. She asked if I wanted her to become a lawyer. I snapped back without hesitation … NO WAY! So, now she’s an aspiring Authoress. I’m pleased with that … AND … she avidly pours over my case filing briefs.

    • wish they were all pre-82, sadly that is not the case.  And no need to melt down myself, plenty are willing to pay for theirmelt value on craigslist.  Also of interest are the old pre ’81 canadian nickels, i have very few of these as in the states it is uncommon to come across them in general, and older ones more specifically.

  19. Man, People here are poor and naive.
    Dudes, The price of Gold was never set by poor idiots like some of you here. Since when the poor man in the world have any gold. It really does not matter how much they make per month. They can make a million dollar a month, but they can never afford a tiny piece of gold. Why?
    Cause Gold has nothing to do with wages. It has everything to do with store the value of the wealth. Think, think about the people who have millions upon millions of dollars. Or the poor one collectively have millions and million of dollars. When all of them know that these MILLIONS upon MILLIONS will become worthless for SURE. Guess how many millions I will want to exchange for one ounce that is in my hand. The time will come. Just matter of when. And when it is here. when should you exchange it for the most you can get. That is something you should put mind into. Not how much it will be. If you are not smart enough to understand that Gold got to 5000$ or 50k or 1MM are totally the same, you shouldn’t even invest in this.

  20. Waiting for silver
    Exactly   The Hunt brothers tried to beat the market but got crossways with the Fed, The treasury, the Saudis who financed their purchases; huge margin accounts then huge margin calls. Oooops. The Hunts were oil men first so they got in bed with the saudis pretty quickly
      They had to be crushed because the silver and gold prices were saying to the world that the dollar was FUBAR. Guns and butter FIAT printing and near hyperinflation were the order of the day for the 1970s. Stagflation was our reality. Bummer
    They were lucky to get out alive. 
    The Hunts were bankrupted by the actions of the banks in alliance with our government, all helped along the way by a brokerage that was bought out by Bear Sterms (I think) and that brokerage was bought by PM when BS went broke. The Hunts Saudi prince financiers had a knot jerked in their tails by our people since the petro dollar was fairly new and the Saudis were in on the scam, buying hundreds of billions in new government debt.
    They had to toe the line but probably made billions front running the gold and silver prices. They’ve always been buying gold with their extra walkaround oil money too boot so seeing the price smashed made gold cheaper in 1981 and they were all good with that scam too. Kind of like today with prices smashes offering up cheap gold and silver to those with the good sense and junky dollars to buy it up.
    Jim Sinclair was called in to assist Volker with $1 billion in funding to short the market and crush silver prices.  The ESF was probably used to this end.  One end of the story is that Jim Sinclair saw first hand how the mighty hand of the government aided by the ESF could smash their foes, billionaires and entire countries with impunity and great elan.
    Don’t screw with the Fed and ESF.
      No wonder his voice is now somewhat muted. 
    I am sure he knows he could be killed or destroyed financially if those whom he still knows personally decided he was too troublesome. It suprises me not at all to see him move from the US to another country. Singapore or so I heard.
    If he really told the truth about our present paradigm we could not handle the truth, or maybe some could,like us, but that would tear the tits off the Matrix nonetheless. IMO
    What he does talk about is getting out of the system  He knows the signs and portents, having been part of the kill team that destroyed the Hunts
    Dont screw with Mother Nature or a Reserve Currency and TPTB

    All the Hunts were trying to do was play the silver market since they could see the handwriting on the wall. All the banks do it now but as we see from the battle wagons lined up waging war against JPM, that game is going to come to an end.
      Inflation was kiting the precious metals prices for more than 8 years before the big spike in 1980. 
    Gold was the outlier since Hunts were going after silver, creating a buying frenzy.  Gold went along for the ride and was not being manipulated by any buyers as far as I know about the story.
    So the real story was that silver and gold were assuming their natural roles as real money. The Hunts tried to play that rise and got their asses hauled.  Sometimes pursuing the truth is hazardous to your financial health IMO

    BTW I am not absolutely sure of the accuracy of this story but I am sure it is a story
    It’s a story that everyone should tell their children

    “Once upon a time, there were 3 brothers, Bunkie, Lamar and Nelson, who tried to steal the big bad wolf’s silver.
    They huffed and puffed the price until the big bad wolf f***** them up their Texas a*****.
    Guaranteed to scare the peewondden out of the kiddies LOL
    Warren Buffet didn’t get the message and he had a big ole’ knot jerked in his tail. Now he’s just an Obama lap poodle.

  21. Gold and Silver along with Platinum are THE ultimate personal protection against Central Bank Fiat to infinity Government facilitated wealth confiscation. THERE IS NO OTHER METHOD TO PRESERVE VALUE AND WEALTH period the end. Trade all available after basic necessity fiat for PMs. Awaiting rebuttals.

  22. Before half of this materializes the USD will be in hyperinflation. Gold won’t matter because hyperinflation will result in shortages of hard goods and even food. This will exist until supply lines can be reestablished based on some sort of currency. No one knows how long this will last. So, be prepped and store food and lots of ammo for your arms. It’s going to get ugly before it gets better.

  23. I’ve said this before and will repeat it.  If you want some good back channel intel and a deep drilling down of the stuff we love to talk about, Willie’s Hat Trick letter is worth every penny of its cost  At about 10 oz of silver, you get 75-80 pages of tightly written, small print, single spaced prose that hits more home runs than ARod on roids. 
    While Willie is not my only subscription, using about 10 others from various sources, he either confirms what I have thought, shoots down my misinformed dumb ass opinions and makes the reality of our world almost painfully real.
    I might dismiss his referrence to ETs, their colonies on the dark side of the moon, Daddy’s Bush’s trilionaire status, underwater banker prisons in the Carribean (But would love to have confirmation if true) and a few other over the top opinions, but most of his opinoins and assertions are tempered with intel from deep inside the outside layer of the Matrix, meaning some good moles and sources who want us to know What the Frigg we are facing.
    If it was in my power to share all his insights with all y’all I would but copywrite rules prevail

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