Dollar being driven up? Good luck.
Gold $5,000 a ounce - no but $2000 is possible. Gold is good to trade IF you know what you are doing.
Dow or market down 90%. Very possible. 50% drop plus dollar devaluation of 20% or so gets you pretty close to a real 90% drop.
The govt printing presses will kill us. Social Security supposedly goes into the red late next year or about 10 years faster than was expected.
In Jan 1980 the ratio of dow to gold was 1:1 (872.78 for the dow vs $850 for gold).
The economy was bad then, but there was no shtf situation.
Can the economy get as bad as Jan 1980 again? Sure, why not?
Can the ratio of dow to gold hit 1:1 again? Sure, why not?
What would that mean in current $ terms? $5k gold and 5,000 dow? Sure, why not?
The price of Gold in US $ is determined not only by the strength or weakness of the US $, but also the global demand for gold (among other things).
Even with gold at $1k, and gold from $250 to $1k, gold was never “the thing to buy”. There hasn’t been a mania, a bubble, or anything of the sort. Conventional wisdom throughout this entire period has not been to buy gold.
When everyone wants to buy gold as if it was yahoo.com in 1999-2000, that’s your bubble, that’s when gold hits $5k.
I’m not saying that bubble is going to happen, but we’re not in a gold bubble right now, and a gold bubble doesn’t mean catastophe at all. Just investors getting excited about something else.